HRA 1981 12 17AGENDA
REGULAR MEETING
CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
THURSDAY, DECEMBER 17, 1981
CHANHASSEN CITY HALL, 690 COULTER DRIVE
CITY COUNCIL CHAMBERS
7:30 P.M.
7:30 p.m. - 1.
2.
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5.
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7.
8.
9.
10.
9:00 P.M. -11.
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Call to Order.
Approve minutes of December 3, 1981 meeting.
Approve Purchase Option Agreement for Riviera Supper
Club,
Discuss Special Assessment Reduction Program for
Redevelopment Project- Business Park lands.
Review HRA General Insurance Requirements.
Review status of Downtown Redevelopment Project
construction fund.
Downtown Project: General Status Report.
Approval of Bills.
Old Business.
New Business.
Adjournment
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
101 - 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
MEMORANDUM
TO: Chanhassen Housing and Redevelopment Authority
FROM: Scott A. Martin, Executive Director
DATE: December 11, 1981
RE: HRA Meeting Scheduled for December 17, 1981
Enclosed is the meeting agenda for next Thursday, along with
materials for Agenda items Nos. 2, 3, 5, 7, and 8.
However, reports on items 4 and 6 were unable to be completed in
time for this meeting. These materials will be forwarded to you
as soon as possible next week. My apologies for any inconvenience
this may create for you.
Chanhassen Housing and Redevelopment Authority
Special Meeting
December 3, 1981
Minutes
Call to Order
The meeting was called to order at 7:35 p.m. by Chairman Gullickson.
Present were Commissioners Gullickson, Bohn, Horn, and Russell.
Absent was Commissioner Whitehill. Executive Director Scott Martin,
Attorney Russ Larson, and City Manager Don Ashworth were also
present. Whitehill arrived at 8:15 p.m.
Approval of Minutes
Bohn moved, seconded by Horn, to approve the minutes of the September
10 and October 6, 1981 meetings as presented. All voted in favor
and the motion carried.
Carver County Joint Cooperation Agreement
Bohn moved, seconded by Russell, to adopt Resolution #81 -7 approving
the Joint Cooperation Agreement with Carver County for participation
in the 1980 Community Development Block Grant Program under Grant
#B- 80 -DS -72 -0010 and authorizing the Chairman and Executive Director
of the HRA to execute the agreement on behalf of the HRA. All voted
in favor and the motion carried.
Approval of 1982 Administrative Operating Budget
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Don Ashworth, City Manager, presented a brief overview of the HRA's
1982 Administrative Operating Budget, as adopted by the City Council
r on October 13, 1981.
Gullickson requested that the Downtown Project Construction Budget
be available for review at the next regular meeting. Martin explained
that the construction budget consists of the expenditure budget approved
with the first bond issue, but agreed to provide up to date report
on the fund status at the next meeting.
The Commissioners also discussed the necessity of establishing a
separate accounting system for BRA revenues and expenditures that
would provide for approval of bills by the HRA rather than the City
i Council. Martin was directed to request a legal opinion from the
Attorney concerning legal requirements for HRA accounting of tax
increment revenues.
Russell moved, seconded by Bohn, to approve the 1982 HRA Adminis-
trative Operating Budget as presented, contingent upon presentation
of an up to date status report on the Downtown Project Construction
Budget at the next regular meeting. All voted in favor and the motion
carried.
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HRA Minutes
December 3, 1981
Page 2
Havlik Property Purchase Option Agreement (Parcel #30)
Russ Larson, Attorney, reviewed the contents of the Purchase Option
Agreement and Memorandum of Option Agreement offered to and accepted
by John and Loretta Havlik dated December 3, 1981_ for purchase of
the Havlik Mobil Station property.
Commissioner Whitehill arrived at this point in the meeting.
Whitehill moved, seconded by Bohn, to approve the purchase option
agreement and the Memorandum of Option Agreement as executed by the
Havliks, and to authorize and direct the Chairman and Executive
Director to execute both agreements on behalf of the BRA. The
attorney was also ordered to immediately file the Memorandum of
Option Agreement in the office of the County Recorder. All voted in
favor and the motion carried.
Huber Property Acquisition (Parcel #26)
Larson presented a'status report on his negotiations with John Huber
for acquisition of his vacant property identified as Parcel #26.
He pointed out that an error had been made in the appraisal of this
property, which consisted of including existing public street right -of-
way in the property's land area computations. He concluded that the
"saleable" portion of the property consists of only 88,000 square
feet, and not the 99,590 square feet reported in the appraisal report.
As a result of this error, negotiations for acquisition of the
property have become confused and no progress has been made to acquire
the property in the immediate future. He recommended that authority
be given to him to have the property reappraised and to commence
eminent domain proceedings for acquisition if the property owner does
not accept an offer equal to the newly appraised value.
Whitehill moved, seconded by Horn, to authorize reappraisal of the
Huber property and to continue acquisition negotiations following
receipt of the new appraisal. All voted in favor and the motion
carried.
Riviera Property Acquisition /Relocation (Parcel #31)
Larson presented a status report on the Riviera property acquisition/
relocation negotiations. At issue was the amount of monthly rent to
be paid by the Riviera if occupancy of the property continues beyond
the date of acquisition by the HRA, and the amount to be paid for
extensions to the original option period.
The Commissioners agreed that monthly rent following HRA acquisition
should be set at 1 /12th of the annual real estate taxes exclusive
of special assessments, on the property payable in the year of closing.
The Commissioners also agreed to accept a provision in the purchase
_ HRA Minutes
December 3, 1981
Page 3 -
option agreement which provides for a $5,000 payment by the HRA for
each quarterly option term extension, subject to the requirement
that option extension money paid shall be deducted from the total
purchase price upon HRA acquisition.
HRA Acquisition /Rental Policy
Horn moved, seconded by Whitehill, to extablish a formal HRA property
acquisition policy that provides for a uniform rental payment to the
HRA by businesses occupying properties following final HRA property
property acquisition which is equal to one - twelfth (1 /12th) of the
annual real estate taxes, exclusive of special assessments, on the
property payable in the year of closing. All voted in favor and the
motion carried.
Downtown Redevelopment Project Status Report
Martin updated the Commissioners on the current status of activities
concerning the Downtown Redevelopment Project. He reported that
Red Owl stores had not yet completed their market analysis study,
but that completion of the study was imminent. He also reported
that Kraus - Anderson was interested in possibly constructing their
mandatory building improvements in two phases rather than all at
_ once, due to the recessionary economy. Any decision by Kraus - Anderson
relative to project phasing would not be made until the supermarket
issue is resolved.
— Martin also reported that project field survey work has commenced,
and is presently more than one -half (�) completed. Completion
of this work is anticipated within two (2) weeks, weather permitting.
Traffic Analysis Study - Highway 5 Intersections
Martin reported that completion of the HRA's intersection study for
Highway 5 intersections in the area of Chanhassen Lakes Business Park
was temporarily delayed while Minnetonka, Inc. prepared an Environ-
mental Assessment Worksheet (EAW) and traffic study, which is required
as part of their plan review requirements prior to receiving city
approval.
The results of the Minnetonka, Inc. traffic analysis will be incorporated
in the HRA's overall intersection study. No completion date for the
study is known at this time.
Martin also reported that the State Department of Transportation
has determined that traffic signals are warranted for the intersection
of Highway 5 and Powers Boulevard (Co. Rd. 17) based on current
traffic volumes.
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HRA Minutes
December 3, 1981
Page 4 -
Kraus - Anderson /Bloomberg Companies Redevelopment Agreements Expiration
Dates
Whitehill moved, seconded by Russell, to adopt Resolutions #81 -5
and #81 -6, which clarify the expiration dates of each Redevelopment
Agreement by establishing May 27, 1982 as the expiration date of
each. All voted in favor and the motion carried.
West 79th Street Realignment Stud
The results of the West 79th Street realignment study, as prepared
by BRW, Inc., were reviewed by the HRA. No action was taken, except
to review the consultant's findings and recommendations and to file
the study for future reference.
Adjournment
Whitehill moved, seconded by Horn, to adjourn the meeting at 9:30 p.m.
All voted in favor and the motion carried. C
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OPTION TO PURCHASE REAL ESTATE
This Option Agreement made this N601 day of yECem BE4e_,
1981, by and between Thomas J. Krueger and Mary Lou Krueger,
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 aid 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:
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 (D011ars)(539,160.60)( "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,
=t its own expense, the cost thereof to be reimbursed by the Seller
in the event the option herein granted is exercised. Upon receipt
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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.
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.
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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
paragrapiiT 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:
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a) If to Seller Thomas J. Krueger
560 West 78th Street
Chanhassen MN 55317
b) I£ 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 a Subject
Property shall be 'Three Hundred Ninety -one Thousand Six. Hundreel 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.
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6.1 Purchase Price Adjustment. In the event that t�e-
Buyer elect=. to extend the option term from and after
September 1, 1982, pursuant to the provisions of x'3.1
above, the Buyer shall have the land and buildings
constituting the subject property re- appraised by an
established appraiser of its choice for the purpose of
determining any appreciation in value of said subject
property over and above the negotiated price of 5391,606
as set forth in 16 above. In the event that the re-
appraisal of the subject property establishes an appre-
ciation in value over and above said negotiated price ^f
$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 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 exten-
sion periods subsequent to September 1, 1982, In no
event, however, shall the purchase price of the subjec_
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 pro-
Visions of 116 or 116.1 shall be inclusive of all relocation costs
payable to Seller pursuant to the provisions of Minnesota Statutes,
Chapter 117, except as agreed upon should Seller relocate within
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Tax Increment District No. 1. No relocation responsibility shall
accrue to the Buyer before notice of the exercise of this option
pursuant to 14 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.
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9. Marketability of Title. In the event that the Buyer
- shall elect to purchase the Subject Property and shall deliver notice
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of said election to the Seller in the manner provided in 114 above,
the Seller shall, within ten (10) days of the delivery of said
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notice, deliver to the Buyer an abstract of title or a registered,
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property abstract continued to the date of delivery and including
proper searches for judgments, bankruptcies, state and federal tax
liens, real estate taxes and special assessments, showing good and
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marketable title to the Subject Property in the Seller. After
delivery of said abstract or registered property abstract, the Buyer
shall have thirty (30) days for the examination thereof, and to
deliver written objections, if any, to the Seller. Seller shall permit
no additional encumbrances to be made upon the Subject Property between
the date of exercise of the option by the Buyer and the Closing Date.
In the event that title to the Subject Property is found
by the Buyer to be unmarketable, and cannot be made marketable by
the Seller by the Closing Date, then, at the option of the Buyer,
this Agreement shall be null and void and the Option Price shall be
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refunded forthwith to the Buyer.
10. Closing Date. The closing of the sale of the Subject
Property shall take place within sixty (60) days after the exercise
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of the option by the Buyer pursuant to 114 above, or at such later
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date as may be mutually agreed upon by the Seller and Buyer.
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11. Deed and Bill of Sale Delivered at Closing. Seller
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agrees to give good and marketable title to Subject Property and
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to convey the same by warranty deed joined in by all individuals
known collectively as Seller herein (and by spouse, if any), and in
form acceptable to counsel for Buyer. Seller agrees to deliver to
Buyer a bill of sale for all fixtures shown on Exhibit B attached
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hereto.
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12. Seller's Representations and Adjustments The Seller
agrees to free the Subject Property from all taxes, special
assessments (excerpt special as =essments which may result from the
Project), liens and encumbrances and charges to the date of con-
summation of the purchase under this option, except that it is
agreed that all rents, utilities, insurance premiums on transferable
tolicies and other income and expenses relating to the Subject
Property shall be pro rated to Seller and Buyer as of the Closing
Date.
13. No Broker Involved. The Seller and Buyer represent and
warrant to each other that there is no broker involved in this
transaction with whom it has negotiated or to whom it has agreed to
pay a brokerage commission. Buyer agrees to indemnify Seller for
any and all claims for brokerage commission or finders' fees in
connection with negotiations for the purchase of the Subject
Property arising out of any alleged agreement, commitment or nego-
tiation by Buyer, and Seller agrees to indemnify Buyer for any and
all claims for brokerage commissions or finders' fees in connection
with negotiations for the sale of the Subject Property arising out
of any alleged agreement, commitment or negotiation by Seller.
14. Possession and Insurance. Seller shall continue in
possession of the Subject Property until the Closing Date and shall
maintain it in its present condition. On the Closing Date, posses-
sion shall be delivered to the Buyer. Risk of loss from casualty
or any liability incurred by or as a result of the use of the Subject
Property shall be the Seller's until delivery of possession to the
Buyer as herein provided.
Seller shall keep and maintain at the Seller's wn
?sJ Cec(3 �4p
expense fire and casualty insurance in the amount of'$'''oo, °�'b'
covering the Subject Property from the date of this Agreement to
the date of delivery of possession of the Subject Property to the
Buyer, and upon exercise of this option by the Buyer, the Buyer shall
be named as an additional insured on such insurance coverage with
proceeds of any payment under such insurance in the event of loss
or damage to the premises to be paid to Seller and Buyer in accor-
dance with their interests.
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15. Rental of Subject Property. The Buyer, in its discretion,
may lease the Subject Property to the Seller as tenant at a monthly
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rental equal to one- twelfth (1/12) of the annual real estate taxes,
exclusive of special assessments, on the Subject Property payable
in the year of closing. Said monthly rentals shall be payable in
advance, and such tenancies shall be tenancies at will, from month
to month.
During all times Seller shall remain in possession of the
premises pursuant to the provisions of this 1115, Seller shall keep
and maintain at Seller's own expense fire and casualty
insurance covering the Subject Property, and additionally, Seller
shall keep in force public liability insurance with limits of not
less than $300,000 per person, $500,000 per occurrence, and $100,000
property damage. The Buyer shall be named as an additional insured
on all such insurance coverage with proceeds of any payment under
such insurance in the event of loss or damage to the Subject Property
to be paid to Buyer.
16. Personal Property. On Closing Date, or on termination of
any tenancy established under 1115 above, whichever is last to occur,
the Seller shall have removed from the Subject Property any and all
personal property. In the event any personal property is left
on the Subject Property on the Closing Date or termination of
any tenancy under 1115 hereof, the Seller waives all rights to said
,personal property and holds the Buyer harmless for its destruction.
17. Reserved.
event, after granting of this option and acquisition of the Subject
Property by the Buyer, the Project is revised in such manner as to
exclude the use of the Subject Property from the Project Area and
the Buyer offers the Subject_ Property for sale to the general
public for non - Project area uses, the Seller shall have the right
of firs* refusal to purchase the Subject Property upon the following
terms and conditions:
In the event Buyer shall receive from a third party
at-any time a bona fide offer to purchase the
Subject Property at a specified price and upon specified
terms, whether such price be first fixed by Buyer or
the third party, and the Buyer shall decide to sell
the same for such amount and upon such terms, Buyer shall
promptly give to Seller notice of the terms of such
offer and of Buyer's willingness to sell for the price
offered, and Seller shall have the first refusal and
privilege of purchasing said Subject Property at such
a price and upon such terms; such first refusal and
privilege to be exercised within thirty (30) days after
Seller receives notice from Buyer by Seller notifying
Buyer that he will purchase said Subject Property for the
amount and upon the terms specified in said offer. In
the event Seller shall not give Buyer notice within said
thirty (30) day period of his election to purchase for the
amount and upon the terms specified in said offer, Seller
shall not be obligated to purchase, and Buyer may there-
after sell said Subject Property to the party making the
offer. If for any reason said Subject Property is not
sold to such third party, notice of any subsequent bona
fide - offers, acceptable to Buyer, shall be given to Seller
upon the same terms and conditions for acceptance or
rejection as hereinabove provided. The within right of
first refusal shall expire thirty -six (36) months following
the Closing Date on which Buyer acquires the Subject
Property.
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18. Entire Agreement; Amendments. This option constitutes
_ the entire agreement between the parties and no other agreement
prior to this Agreement or contemporaneous herewith shall be
effective except as expressly set forth or incorporated herein.
Any purported amendment hereto shall not be effective unless it
shall be set forth in writing and executed by both parties hereto
or their respective successors or assigns.
19. Binding Effect; Assignment. This Agreement shall be
binding upon and inure to the benefit of the parties hereto, and
their respectiveheirs, executors, administrators, successors
and assigns. _Buyer shall not assign his rights and interest
hereunder without prior consent of the Seller, and Seller shall
give notice to Buyer of assignment of its interests in the manner
prescribed in paragraph 5 hereof.
20. Date of Execution. This Agreement shall be signed by
the Seller and returned to the Buyer with evidence of title as set
_ forth in paragraph 2 no later than 4:00 p.m., L�6C.EM Bf -R. /C1
1981 or it will expire, and the Seller shall have no rights or
claims against the Buyer hereunder.
21. Specific Performance. This Agreement may be
specifically enforced by the Buyer upon exercise of its option.
22. Recordation. It is intended by the parties hereto that
this Agreement shall be filed for record in the office of the
Carver County Recorder, and in the event that the option herein is
not exercised, the Buyer shall execute a Release of all its
rights, title, claims and interest hereunder and file said Release
for record in the Office of the Carver County Recorder.
1 _ _ IN WITNESS WHEREOF, the parties hereto have hereunto
set their hands, the day and year first printed above.
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(Seller)
(Seller)
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF CHANHASSEN
Attest: By
William D. Gullickson, Chairman
of the Board of Commissioners
Executive Director
STATE OF MINNESOTA)
) ss.
COUNTY. OF CARVER )
On this Hit4 day of
before me, a notary public, pe
198 ) ,
within instrument and acknowledged that they executed the same
for the purposes therein contained.
No ry b i
My co ission expires:
- ;....� KAREN J. ENGELHARDT
NDTMYPYBLIC- MINNESOTA
STATE OF MINNESOTA) \ CARVER COUNTY
) ss.
vim:• My
CARVER
� CO aL Y eau
COUNTY OF CARVER )
On this day of 198
before me, a Notary Public, within and for said County, appeared
William D. Gullickson, and Scott A. Martin, to me personally
known, who, being each by me duly sworn, did say they are
respectively the Chairman and Executive Director of the Housing
and Redevelopment of the City of Chanhassen, a municipal
corporation, and the instrument was signed and sealed in behalf
of said municipal corporation by authority of its Board of
Commissioners, and that they acknowledged that said instrument
on behalf of the free act and deed of said municipal corporation.
Notary Public -
My commission expires:
This instrument was drafted by:
Russell H. Larson
LARSON & MERTZ
1900 First Bank Place West
Minneapolis, MN 55402
(612) 333 -1511
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File No. C -5798 - PARCEL ,131
EXHIBIT' A
KUM USWl ARSIRACI L TITLE SERVICE, X
112 - West 3rd A~% a
BOx 251
13MROpee. Minnesota !3179
That part of Section 12, Township 116, Range 23, Carver County, Minnesota, described
as follows: Beginning at a point in the South line of said Section 856.20 feet West
of the Southeast corner of the Southwest Quarter of said Section; thence blest along
the section line 250.00 feet; thence North at right angles 283' more or less to the
south line of the Plat of Scholers 2nd Addition to the Village of Chanhassen; thence
Easterly along the south line of said plat 250' more or less to the intersection of
a line drawn at right angles from the south line of said Section 12 from the point of
beginning; thence Southerly along said line 283 feet more or less to the point of
beginning.
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EXHIBIT B RIVIERA OPTION
ITEM AND DESCRIPTION
FEEHOLDER PROPERTYr
Immovable Fixtures
Basement
Item B1
1 Unti - Fridge wood walk -in refrigerator,
6'x8'x7', Sd1397 w /5" thick door,
1 - Tecumseh, M'AJ7441AC, Sfr'74722228,
MQB218 -1
1 - compresor, 1 - fan mtd. to side
on 2x4's
1 - SW 10" fan on inside
1 - lot of mist. shelving on inside
of cooler
#2
1 Nor -Lake walk -in freezer, 6'x6'x7',
outside dimensions
1 - door heater enameled ext.,
alum. int., 6" thick door
1 - McOuay cooling unit,
M#EEP030A, Sii4JK4109902, 1120 HF,
130A
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1 lot of ptd. shelving food &
beverage enclosure cs /o:
268 lin.ft. of 2x4 framing
123 lin.ft. of 2x2 framing
115 lin.ft. of 1x12 shelves & uprights
48 lin.ft. of 1x4 shelves & braces
16 lin.ft. of 1x2 braces
102 lin.ft. of 1x6 shelves
126 sq.ft. of plywood shelves
24 lin.ft. of 2" wire mesh, 7' hi
1 - Weiser dead bolt lock
1 - Yale dead bolt lock
1 - Bulman 2' paper cutter mtd. on
2x8 to structure
#4
1 lot of shelving beverage stge.
enclosure cs /o:
116 lin.ft. of 1x4 framing
62 lin.ft. of 2x2 framing
84 lin.ft. of 2x4 framing
203 sq.ft. of 'z plywood
20 lin.ft. of 7' hi wire mesh
1 - Weiser dead bolt lock
COST OF PER CENT
REPLACEMENT DEPR.
PATCHIN APPRAISALS. INC.
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3,857. 30
4,287. 10
1,230
745
15
15
PRESENT
VALUE
2,700.
3,858.
1,046.
633.
EXHIBIT B
RIVIERA OPTION
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ITEM AND DESCRIPTION
FEEHOLDER PROPERTY
IIIm"UVtlble Fixtures
Basement
115
1 lot of wall mtd. shelving
8'xl'x3' cS /o:
30 lin.ft. of 1x12 uprights &
shelving
15 lin.ft. of 1x2 framing
116
1 rinse tub, 57x22x36
w/3 - 14" deep compartments
1 - hot & cold water faucet
117
1 lot of approx. 200' '2" plastic
tube installed from basement
to bar
118
1 cone. loss for 2 - ice makers
cs /o:
21' of 3/8" copper pipe
35' of Y" copper pipe _
3 - valves
8 - fittings
23' of 3/16" copper pipe
1 - valve
2 - fittings
7' of 3/4" flux. conduit
2 - 4x4 boxes
23' of 5/8" conduit
1st Story Hall
119
1 lot of built -in wood shelving
cs /o:
5 L- shaped shelves built into
corner, 10'6" lin.ft. x 21"
Plywood, 2x2 const.
Kitchen
1110
I 4on71rath cooler, 6'x8'x92"
hi, ptd. mtr. outside, 38" door,
4" thick, g.i. interior, M1/54141
2909 side mtd. comp. Iz lip
COST OF PER CENT
REPLACEMENT DEPR.
CPATCHIN APPRAISALS, INC.
72• 30
809. 45
225.
574
195
2,997
10
10
30
20
PRESENT
VALUE
50.
445.
203.
517.
137.
2,398.
80202
-� ITEM AND DESCRIPTION
( FEE1101.OEli. PIt01'EIt "1'7-
- '
_ Inunovable Fixtures
Kitchen Cooler
j Lt 1 __ - --
1 lot of steel wire shelving in
Cooler Cs /o:
3 - shelf units, 29" wide
rl w /4- shelves
' 1 - shelf unit, 24" wide
w /4- shelves
r 1 - shelf unit, 34" wide
w /4- shelves
r ;112
1 wall mtd. cork bulletin board,
35 "x24"
Kitchen
T1
1 lot Of wood shelving CS/O:
3 - 3' hook rods
12 - 10" shelf brackets
3 - ptd. 5'x10" wood shelves
#14
` 1 s/s sink in hose unit,
46 "x24" base unit w /lam.
Alas. top, 3 doors, 1 - dwr.,
s/s sink, 19 %15! %11" deep
w /bar spigot
#15
1 connection loss for Farmer Bros.
coffee maker
1116
1 lot of wood shelving cs /o:
3 - 2' hook strips
6 - 9" brackets
2 - ptd. 3'x10" shelves
1117
1 s/s triple sink, 55 "x23"
w /9-i. legs, 8" blacksplash
sinks, 18 "xl8 "x14" deep
dbl. swivel faucet
--
#18
1 lot of 3 s/s wall mtd. shelf
units, 36 "x12" w/2 - wire
grill shelves
COST OF PER CENT
PRESENT
REPLACEMENT
- ---�__ DEPR. VALUE
PATCHIN APPRAISALS. INC.
312. 25 234.
20. 20 16.
32. 30 22.
713. 30 499.
200. 20 160.
22• 30 15.
760, 10 684.
110. 10 99.
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ITEM AND DESCRIPTION
PEEHOLDER PROPIiRTY
Immovable Fixtures
Kitchen
026
1 connection loss for Garland
stove
if 27
1 connection loss for 8roaster
028
1 s/s center table, 13'x45"
w /lower s/s shelf, 20 "x15 "x12"
sink w /bar spigot, center
w/2 tier shelf unit 9'10 "x15"
w/2 - Cory Stay Hot food warmers
029
I utinsel hanging rack, 6' with
rods welded to 2" angle iron
ceiling mount
Dining Room
630
1 wrought iron partition separating
service & customer area cs /o:
2 - 6'x7' panels w /12" wide
outside wrought iron frame and
center shadow box
I - waitress station, 8'6 "x23"
lain. plas. top, panel front & ends,
s/s 3 -dwr. elec. bun warmer, 2 s/s
silverware holders, 3 - shelves &
6 - glass tray slots
4 - 24 "x9" louvered panels unit
framed with 30' of 1 "xl" steel
rods incl. 3- braces to back wall
631
I lot of 4 built -in shadow boxes
29'x20" w /scalloped wood frame
1132
1 wall mtd. mirror cs /o:
2 - 66 "x80" mirror w /4" wood
frame and 8" wide scalloped frame.
033
1 lot of 9 - wall mtd. hanging
lights, center light tube
W/10" iron grill globe
COST OF PER CENT
REPLACEMENT DEPR,
PATCHIN APPRAISALS. INC.
-10-
75. 20
75. 20
1,684. 20
125. 10
1,125., 25
320. 30
415. 10
720. 10
PRESENT
VALUE
M
60.
1,347.
113.
844.
224.
374.
648.
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80202
ITEM AND DESCRIPTION
rrtalol.ulR
Immovable Fixtures
Dining Room
1134
1 glass fireplace door, 45 "x42"
#35
1 Handstand, 14'x62 "x19" hi,
carpeted
ir'36
1 Hostess wall mtd. stand
24 "x18 "02" hi, 450 slant
top, 2 - lower shelves
1137
1 salad bar Counter cs /o:
1 - 4' leg & 5' leg, 33" wide
lam. plas. top w /15° blacksplash,
88 "x25 "x6" deep, s/s insert to
sneeze guard, 9 - lower doors,
2 - shelves, 88 "x8" deep shelf
unit on back side for glasses
#38
1 Service counter, 50 "x29" lam.
plas. top w/1 -shelf below,
top shelf unit, 22" hi with
lam. plas. shelf
/l3 9
1 lot of 6 - decorative arches
enclosing above salad & service
bar
#40
1 Pure Air air purifier, est.
18" sq. cube
1141
1 wall mtd. mirror, 7'x58" hi
curved top, scored into 10
sections, 4 - rosettes, 3"
wide wood frame
#42
1 service counter, 42 "x18" lam.
plan. counter w /10xllx6" deep
s/s bar sink; 2 - .doors under
w /Shelf
COST OF PER CENT
REPLACEMENT DEPR.
PATCHIN APPRAISALS. INC.
-11-
150. 10
329. 25
125. 20
1,960. 25
254. 25
600. 25
760. 30
236. 10
608. 25
PRESENT
VALUE
135.
247.
100.
1,470.
191.
450.
532.
212.
456.
ITEM AND DESCRIPTION
FEEHOLDER PROPERTY
Immovable Fixtures
Dining Room
#43
partition wall, 12'x8' Cs /o:
1 7'x.3!_' ptd. wall w /6"
top cap
r...i 1 - shadow box, 51 "x35" w/4
f translucent plastic panels -
& 4 - masonite stamped grillwork
panels
1 - shadow box, 8'x65" w/5
translucent plastic panels
& 5 - masonite stamped
grillwork panels
1144
1 hufcar dbl. sided folding
wall partition, 32'x11'
#45
1 Antique chandelier, brass
2 -tier, inner tier has 6
fixtures, red spiral pattern,
r 8" sphere with chimney, dia.
of inner tier approx. 3'
across, lower tier same
description, approx. 5' across
1146
_ 1 emergency dbl. floodlight
l 1147
1 lot of shelving and coat hanging
rack in coat room cs /o:
40 lin.ft. of 9" wide wall
mtd. shelving
r 20 lin.ft. of 1" pipe
10 lin.ft. of 3/4" pipe
l 12 fittings
COST OF PER CENT
REPLACEMENT DEPR.
r Bar
j 1/48
1 U- shaped bar, 18'6" with
1 - 8' leg, 1 - 9' leg,
1 - 40" stub leg, lam: plas.
top, 14!1" wide w /311" glass tray,
padded vinyl armrest, lam. plas.
front w /footrest, 24" wide
waitress station w /shelf & trash
receptacle
(continued)
PATCHIN APPRAISALS. INC.
-12-
524. 25
3,326. 20
1,500. 25
334. 30
75. 20
PRESENT
VALUE
393.
2,661.
1,125.
234.
M
80202
ITEM AND DESCRIPTION
FEEHOLDER PROPERTY -
Immovable Fixtures
#50
1 trianglar shelf for M aPprox.
6 sq.ft.
COST of PER CENT
REPLACEMENT OEPR.
1 1151
1 lot of drapes cs /o:
71 1 - 10 "x52" loose woven drapes
iw /decorative rods
PATCHIN APPRAISALS. INC.
-13-
11,221: 20
212. 20
35. 10
197. 20
PRESENT
VALUE
8,977.
170.
32.
158.
Bar
1148 (continued)
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Back bar cs /o:
1 - lam. plas. corner cab.,
33x36 w/2 -doors
1 - 36x21 lam, plas. cab.,
w /set down corner for
mixer
2 - 24 "x21" s/s ice sinks
w /8" backsplash & hanging
6 bottle rack
1 - 83 "x21" sink w/4 - 10 "x14 "x10"
—
sinks & 2 - 18" drain boards
`
1 - Hobart s/s glass washer,
24"x25"
1 - 28x21 glass chiller, self —
Cont. comp. unit
1 - ice cream cooler, 33':;21 ",
self contained comp. unit
F
1 - lam. plas. corner unit,
45 "x22" w /11 "x10" s/s bar
F1
S' & lower corner for mixer
- lam. plas. corner shelf
111
unit, 24x24
1 - 5 selection drink dispenser
1 - 8 selection drink dispenser
Back bar cs /o:
1 - 4 -door lam. plas. cab.,
8'x27" with 30"x18 ", end section
II
holding compressors, g.i. interio*r,
1 - tap beer dispenser w /drain
1 - lam. Alas. 5 -step shelf
y
bottle display, 4'x17 "x17"
1 - lam. plas. counter for cash
register, 24 "x26" w /2 -adj. shelves
f
below
it
#49
^�
1 hanging cab., 6'x23 "xl2" with
4 -doors and 18 upside down glass
hanging cleats
#50
1 trianglar shelf for M aPprox.
6 sq.ft.
COST of PER CENT
REPLACEMENT OEPR.
1 1151
1 lot of drapes cs /o:
71 1 - 10 "x52" loose woven drapes
iw /decorative rods
PATCHIN APPRAISALS. INC.
-13-
11,221: 20
212. 20
35. 10
197. 20
PRESENT
VALUE
8,977.
170.
32.
158.
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80202
ITEM AND DESCRIPTION
FEEHOLDER PROPERTY
viable Fixtures
Bar
1152
1 dbl. shaded spotlight over bar
Office
1153
1 lot of wall mtd. shelving cs /o:
6 - 10" L- brackets
2 - lxl2x5'6" ptd..shelves
1154
1 locker unit, 2'xl'6 "x6'6 ",
w /12 -drs. w /locks,
1 - side panel, no back, 3/4"
ptd. plywood construction _
1155
1 connection loss for Stoeling ice
cream machine
1st Story
1156
1 lot of approx. 400 sq.yds. of
jute back carpeting throughout
dining S bar area
Instd.
1157
1 built -in music system cs /o:
8 - ceiling mtd. speakers
NOTE: Rented 3M amp and
tapes.
Yard
1158
1 lot of yard lighting cs /o:
1 - sgl. floodlight on post
1 - dbl. floodlight on post .
1 - bldg. mtd. dbl, floodlight
1 - light fix, over door
1 - triple floodlight
1159
1 lot of signs cs /o:
1 - pale mtd. dbl. face blown
plas. int. ill. sign approx.
3'x6'x10 ", 6" sq. mtl. post
approx. 15' hi
1 - lot of wood cutout letters,
10" hi "RIVIERA"
COST OF PER CENT PRESENT
REPLACEMENT DEPR. VALUE
PATCHIN APPRAISALS. INC.
—14-
60. 20 48.
59. 15 50.
125.t 40 75.
150. 5 143.
5,180. 30 3,626.
748. 20 598.
288. 30 202.
1,695. 10 1,526.
COST OF PER CENT PRESENT
REPLACEMENT DEPR. VALUE
528. 40 317
NO VALUE
20. MV 20.
100. 40 60.
64,781. 49,879.
80202
ITEM AND DESCRIPTION
,
FEEIIOLUER PROPERTO
Immovable Fixtures
Yard
#60
I lot of 24 8' concrete
parking; humpvrs
#61
1 Stccl. trash burner,
30 "::30 "x76" hi W /cst.
- j
12'x12" :;Lack
1
NOTE: This MIA is
unused and does
not. CoMply WiLh
�j
standards.
1162
1 fence 15'x6', 3 -PIS L
tight vertical boards
^�
1163
i`
I UuLside TV amenna
TOt(11 Feellold Cr Property -
Immovable Fixtures
i
COST OF PER CENT PRESENT
REPLACEMENT DEPR. VALUE
528. 40 317
NO VALUE
20. MV 20.
100. 40 60.
64,781. 49,879.
r -
OPTT.ON A�nREEM ^re
THIS AGREEMENT, made and entered into the 116 day
i - of �, /r ee,uL C
I/ 1981, by and between
Optionors, and
i V
The housing and Redevelopment Authority in and for the City of
Chanhassen, a public body corporate and politic, Optionee,
WITNESSFTH:
The Optionors, in consideration Of One Dollar ($1.00)
and other valuable consideration, do hereby grant to the Optionee
the exclusive option to purchase the premises lying and being in
the Coun+p —of Carver and State of Minnesota, described as follows,
to—"it:
See Exhibit "A" hereto attached for legal
description of Subject Property.
The option hereby granted shall continue in effect to and
including September 1, 1982, and may be extended, at the election
of the Optionee, to and including September 1, 1983.
All 'subject to and in accordance with the terms of that
master option agreement entered into between the parties hereto
as of even date herewith.
IN TESTIMONY WHEREOF, the repsective parties have caused
this instrument to be executed in duplicate, and have hereunto set
their hands and seals the day and year first above written.
Attest:
r—
Executive Director
Option
pt'b or
THE HOUSING AND REDEVELOPMENT
AUTHORITY TN AND FOR THE CITY
OF CHANHASSEN
By
William D. Gullickson,
Chairman of the Board of
Commissioner
STATE of ?;I N:3.°.O'PA )
) ss.
COUNTY OF CARyER )
On this /117t day of ,(µ� 198
before me, a no to 5y public, personally appeared
A- �.c
known c me to o be the c y crsons whose names are subscribed Co the
within instrument and acknowledged that they executed the same for
the purposes therein contained.
N .ary lic
My Commission Expires:
y'�y KAREN J. ENGELHARDT
i N TANY PUBLIC - MINNESOTA
STATE OF MINNESOTA ) � CARVER COUNTY
) ss - Ny CPmmu¢ien En Pi /ee (M. O, 1YB5
COUNTY OF CARVER
nn- this day of 198_
before me, a notary public within and for said County,
appeared William D. Gullickson and Scott A. Martin, to me personally
known, who, being each by me duly sworn, did say that they are
respectively the Chairman and Executive Director of the Housing
and Redevelopment Authority of the City of Chanhassen, a municipal,
corporation, and the instrument was signed and sealed in behalf of
said municipal corporation by authority of its Board of Commis-
sioners, and that they acknowledged that said instrument was
the free act and deed of said corporation.
THIS INSTRUMENT WAS DRAFTED BY
LARSON & MERTZ
1900 First Bank Place West
Minneapolis, MN 55402
(612)333 -1511
Notary Public
My Commission Expires:
F
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File No. C -5793 - PARCEL #31
EXHIBIT' A
XUOIRUSLll ABSIRACT L TITLE SERVICE, X
112 - We.t Ord A~w
Box 231
B7wkoves, MIOM5018 63379
That part of Section 12, Township 116, Range 23, Carver County, Minnesota, described
as follows: Beginning at a point in the South line of said Section 856.20 feet West
of the Southeast corner of the Southwest Quarter of said Section; thence West along
the section line 250.00 feet; thence North at right angles 283' more or less to the
south line of the Plat of Scholers 2nd Addition to the Village of Chanhassen; thence
Easterly along the south line of said plat 250' more or less to the intersection of
a line drawn at right angles from the south line of said'Section 12 from the point of
beginning; thence Southerly along said line 283 feet more or less to the point of
beginning.
RUSSEtlL H. LAR50N
CRAIG M. MERTZ
OF COUNSEL
HARVEY E -SKAAR
MARK C. MCCULLOUGH
Chanhassen Housing
c/o Scott A. Martin
Executive Director
Box 147
LARsow & MERTZ
ATTORNEYS AT LAW
1900 FIRST BANK PLACE WEST
MINNEAPOLIS, MINNESOTA 55402
December 8, 1981
and Redevelopment Authority
FChanhassen MN 55317
TELEPHONE
(612) 333 -ISII
Y MEN
ti E0.
DEC C 9 1981
IT L, EPT
Re: The Reduction of City
Project 78 -3 Assessments
As A Redevelopment Cost
Dear Scott:
The HRA has long discussed the possibility of paying a portion of the
Public Improvements Project 78 -3 assessments as a method of stimulating
the development of Chanhassen Lakes Business Park and the properties
abutting the Business Park.
Initially the proposed program would haved entailed the discretionary
award of tax increment monies on a case -by -case basis, with actual
payment being accomplished by means of a HRA purchase of parcels and
an immediate resale of such parcels at a "written down" price. The
discretionary aspect of the proposed program caused the City's
bond counsel to express serious reservations regarding the program
Ir In addition, numerous practical problems arose from bond counsel's
i stated requirement that assessment reductions could only be accomplished
in the form of a land purchase and resale.
Recently, you have advised me that because of the format of the
proposed overlay zoning ordinance for the Downtown Project, it would
no longer be necessary for the assessment reduction program to be
discretionary in nature.
On November 10, 1981, a breakthrough was achieved with Mr. Kennedy,
the City's bond counsel. Mr. Kennedy reversed his previous position
on the manner of payment of assessment reductions. Mr. Kennedy
agreed that he would no longer object to the concept of making.'direct
payments from the HRA treasury to the City treasury in reduction
of the Project 78 -3 assessments. Mr. Kennedy's consent to a direct
payment program was necessary because the City can issue further
bonds in support of the Downtown Project only if it has received the
approving opinion of bond counsel.
i
Scott A. Martin
December 8, 1981
Page Two
Mr. Kennedy's approval of a direct payment program for the reduction
of Project 78 -3 assessments was conditioned upon:
1. Adoption of certain modifications to the HRA Plan, and
2. City Council approval of those modifications, and
3. Preparation of a form of assessment agreement to be
signed by developers who wish to participate in the
assessment reduction program.
In an attempt to implement the program as discussed with Mr. Kennedy,
we have prepared the following documents for your consideration:
a. The proposed text of Modification No. 5 to the HRA
Plan;
b. A form of H.R.A. resolution approving Modification
No. 5;
C. A form of City Council resolution approving
Modification No. 5;
d. A form of HRA resolution approving a form of assessment
agreement to be signed by program participants;
e. The text of the proposed form of assessment agreement
to be signed by program participants;
f. A form of HRA resolution approving the retroactive
participation of Fluoroware, Inc. in the program.
Document "E" needs the most explanation. In Section 2.2(c) the
redeveloper agrees to build certain improvements at a stated cost.
In Section 3.1 the HRA agress to make an assessment reduction payment
upon completion of those improvements.
The amount of the assessment reduction payments is equal to 7% of
the value of those improvements measured upon completion.(See Section
3.2) In the event that the HRA experiences cash flow problems it
can postpone assessment reduction payments without incurring any
obligation to pay interest during the postponement. (See Section 3.3)
The assessment reduction payment program ends in 1987. (See Section
3.4) In document "B" the HRA reserves the right to extend the program
for further periods of time.
Scott A. Martin
December 8, 1981
Page Three
The redeveloper agrees that it will not seek reductions in real
estate taxes below the amount of taxes which will be payable in the
first year that the new construction is fully taxable. (See
Article V of the Assessment Agreement) .
The redeveloper forfeits his rights under the agreement a) if
the completed improvements are less expensive than originally
contemplated or b) if he fails to complete the improvements within
r the 5 year life of the program or c) if the redeveloper goes into
bankruptcy. (See Sections 6.1 and 6.2)
7 The weak element in the program, as described in the enclosed
documents, is the assumption that the county assessor will be
cooperative and assess the completed improvements at a value at least
as great as the value upon which the 7% payment was made.
The assessor is not a party to the assessment agreement and cannot
be compeled to abide by its terms
In the case of the agreements with Kraus - Anderson and Bloomberg,
this particular problem is disposed of by requiring the redeveloper
to guarantee the HRA's revenue shortfalls and by requiring the
�I
redeveloper to file a letter of credit.
We have attempted to ameliorate the problem in these documents by
r stating in Section 6.1 that completion of the improvements at less
i than the promised cost works a forfeiture of the redeveoper's right
to an assessment reduction payment.
If you have any questions, pelase call.
Very truly yours,
CRAIG M_ MERTZ
Assistant Chanhassen City Attorney
r-
CMM:ner
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OUTLINE OF PROPOSED 7% INCENTIVE PROGRAM
I. FORMAT
1L/ 1Y/ 01
A. HRA by Resolution Adopts Plan Modification No. 5.
B. City Council by Resolution Adopts Plan Modification No. 5.
C. HRA Approves Standard Form "Assessment Agreement" to be
Signed By All Program Participants.
D. HRA Decides Whether Program Retroactively Includes Fluoroware.
II. ELIGIBILITY
Any Redeveloper of a lot which is subject to assessments for
City Project 78 -3. Redeveloper required to sign an "assessment
agreement" with the HRA.(The word "assessment" refers to the fact
that the agreement affects the value at which the property will
be assessed for real estate tax purposes).
III. CONTENTS OF THE ASSESSMENT AGREEMENT
A. Redeveloper agrees to construct certain "minimum improvements"
C.
D.
E
F.
at a specified dollar cost.( §2.02(c))
Upon completion of the minimum improvements HRA agrees to pay
a portion of the Project 78 -3 assessments on that lot. ( §3.1)
Amount of the HRA payment is 7% of the value of the completed
improvements excluding land value. ( §3.2)
(1) Should the Redeveloper
landscaping?
(2) Payment cannot exceed
assessments which are
minimum improvements.
Timing of the HRA payments.
also receive 7% of the value of
amount of the Project 78 -3
unpaid upon completion of the
(1) Documents as drafted contemplate a lump sum settlement
with the City Treasurer upon completion of the minimum
improvements. Cash flow problems are ameliorated by
reservation of a power to postpone program payments to
future years.
(2) Alternative position - HRA assumes responsibility for
payment of the individual installments of assessments
until such time as the total dollar amount of the
installments equals the amount of the promised special
assessment reduction.
Events Causing Forfeiture of Right to Participate in the Program.
(1) Failure to complete minimum improvements before end of
program in 1987.( 53.4)
(2) Failure to complete minimum improvements at a cost equal
to or exceeding the promised cost. ( §6.1)
(3) Bankruptcy of Redeveloper. ( 56.1)
(4) Failure to keep real estate taxes current( ?)
How Are Redevelopers Obligations Secured?
(1) 7% payment is based upon values upon completion ( §3.2)
(2) Redeveloper agrees that it will not seek real estate
tax reductions or tax abatements.( §5.1)
r.
MODIFICATION NO. 5
TO
CHANHASSEN DOWNTOWN REDEVELOPMENT PROJECT AND PLAN
C
Pursuant to Section 1, G, of the Chanhassen Redevelopment Plan,
dated October 28, 1977, as amended heretofore, said plan is
hereby further modified as follows:
j� Subsection A (Project Expenditures) of Section V
(Financial'Plan) of the Amended Plan Booklet (February,
1980, Revised March 20, 1980) is amended to read as
r follows:
A. PROJECT EXPENDITURES
r Project Expenditures include all estimated public costs
for assembling and clearing land and constructing public
improvements. They are presented in two groups.
(1) The first group - short -term expenditures - is
presented in Table 4 and consists of all costs associated
— with Phase I and Phase II developments in the CBD area as
well as all public costs for developing Phase I of the
Business Park and abutting real property (the area between
State Highway No. 5 and the railroad tracks to the south
r of it) .
The City of Chanhassen acting in cooperation with the
r Chanhassen Housing and Redevelopment Authority installed
streets, curbs, gutters, watermains, sanitary sewer
mains, and storm water facilities in the westerly portion
r of the Business Park and abutting real estate as City
Improvement Project 78 -3. The City carried out the
construction of said improvements under the authority of
Chapter 429 of Minnesota Statutes. On September 8, 1980,
the Chanhassen City Council adopted an assessment roll
levying special assessments against the benefited land in
the Project 78 -3 area.
Prior to the completion of Project 78 -3 the Project 78 -3 area
was a "blighted" area and a "deteriorated" area as defined
in the Minnesota Housing and Redevelopment Act (Chapter 462
Minnesota Statutes).
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Under an assessment reduction program to be established by
resolution of the Chanhassen HRA a portion of the Tax
Increment Proceeds will be paid to either the redeveloper
of individual parcels of land, or Chanhassen City Treasurer
or the Carver County Auditor as a credit on a parcel by
parcel basis against the Project 78 -3 assessments. The
amount of each such reduction shall be computed according
to a uniform formula which takes into account the value
of private improvements which various redevelopers contract
to construct within the Project 78 -3 area. No such
assessment reduction payments shall be made unless the
redeveloper of any such parcel enters into an assessment
agreement with the Ii RA specifying the nature of the
private improvements to be constructed and stipulating a
minimum value of said improvements for tax assessment
purposes upon completion of the improvements.
Because the Project 78 -3 area is a scenic, rolling lakefront
site, the cost of Project 78 -3 was high compared to more
typical grid - patterned flat industrial parks in other
communities. Accordingly, land costs in the Project 78 -3
area are not competitive with land costs in other
communities.
The Project 78 -3 area will continue to lie stagnant and
unproductive unless some portion of the Project 78 -3
costs can be absorbed through the tax increment process.
Unless an assessment reduction program, as described above,
is established and implemented, as part of the
Chanhassen Downtown Redevelopment Project, the entire
Chanhassen Downtown Redevelopment Project will not be
feasible.
(2) The second group - long -term expenditures - is
presented in Table 5 and consists of all costs for
developing the remainder of the Business Park area. These
costs would be incurred only if additional future
development of the Business Park and the abutting real
estate occurs.
Dated: November 1981.
Approved As To Form
Executive Director
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1.01. The Chanhassen City Council and this Authority
have approved a redevelopment project to be undertaken by the
Authority, designated as the Chanhassen Downtown Redevelopment
Project (the "Project "), and a Redevelopment Plan (the "Plan "),
for the Project.
1.02. Minnesota Statutes, Section 462.525(Subd. 6)
empowers this Authority to make minor changes in the Plan under
certain limited circumstance which do not require approval by
the governing body of the municipality within which the project
is located.
1.03. Modification No. 5 dated ,
r 19 , has been presented to the Authority for its consideration
and approval.
1.04. Modification No. 5, if adopted, would implement the
!r program of expenditures in the area of Chanhassen Lakes Business
Park as described in Table 4 ( "Project Expenditures Short -Term
Costs ") of the "Amended Plan Drafted February, 1980, Revised
r March 20, 1980" booklet which was approved as Modification No. 3
to the Plan on March 20, 1980.
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SECTION 2. FINDINGS AND APPROVAL.
2.01. The Authority hereby finds that the approval of
Modification No. 5, a copy of which is attached hereto and made
a part hereof as Exhibit A, would not have the effect of
substantially altering or affecting the general land uses
established in the Chanhassen Downtown Redevelopment Plan and
Project.
2.02. The Authority hereby approves said Modification
No. 5 to the Chanhassen Downtown Redevelopment Plan and Project.
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HOUSING AND
REDEVELOPMENT AUTHORITY
OF
CHANHASSEN, MINNESOTA
Dated:
Resolution No.
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Motion by Commissioner
Seconded by Commissioner
RESOLUTION
APPROVING PLAN MODIFICATION NO. 5
BE
IT RESOLVED,
by the Housing and Redevelopment
Authority of
the City of
Chanhassen, Minnesota, as follows:
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SECTION 1.
RECITALS.
1.01. The Chanhassen City Council and this Authority
have approved a redevelopment project to be undertaken by the
Authority, designated as the Chanhassen Downtown Redevelopment
Project (the "Project "), and a Redevelopment Plan (the "Plan "),
for the Project.
1.02. Minnesota Statutes, Section 462.525(Subd. 6)
empowers this Authority to make minor changes in the Plan under
certain limited circumstance which do not require approval by
the governing body of the municipality within which the project
is located.
1.03. Modification No. 5 dated ,
r 19 , has been presented to the Authority for its consideration
and approval.
1.04. Modification No. 5, if adopted, would implement the
!r program of expenditures in the area of Chanhassen Lakes Business
Park as described in Table 4 ( "Project Expenditures Short -Term
Costs ") of the "Amended Plan Drafted February, 1980, Revised
r March 20, 1980" booklet which was approved as Modification No. 3
to the Plan on March 20, 1980.
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SECTION 2. FINDINGS AND APPROVAL.
2.01. The Authority hereby finds that the approval of
Modification No. 5, a copy of which is attached hereto and made
a part hereof as Exhibit A, would not have the effect of
substantially altering or affecting the general land uses
established in the Chanhassen Downtown Redevelopment Plan and
Project.
2.02. The Authority hereby approves said Modification
No. 5 to the Chanhassen Downtown Redevelopment Plan and Project.
2.03. The Authority hereby finds that but for the
approval of said Modification No. 5 and the assessment reduction
program described in said Modification No. 5 the land in the
Chanhassen Improvement Project 78 -3 area will continue to lie
stagnant, underutilized, and unproductive.
2.04. The Authority hereby finds that the entire
Chanhassen Downtown Redevelopment Project will not be feasible
unless the assessment reduction program described in Modification
No. 5 is established and implemented.
2.05. The findings made by the Authority in its Resolu-
tion dated November 29, 1977, approving the Plan and in its
Resolution dated December 18, 1978 approving Modification No. 1
to the Plan, and in its Resolution dated March 20, 1980, approving
Modification No. 3 to the Plan are hereby re- confirmed.
2.06. The Authority hereby finds that the costs of
implementing the assessment reduction program described in
Modification No. 5 a) are expenditures necessary to carry out
the purpose of the Minnesota Municipal Housing and Redevelopment
Act, b) are expenditures necessary to prepare the Project 78 -3
area for private redevelopment and improvement, and c) are a
proper part of the public redevelopment cost of the Chanhassen
Downtown Redevelopment Project.
SECTION 3. IMPLEMENTATION OF MODIFICATION NO. 5.
3.01. No assessment reduction payment shall be made or
authorized unless the following conditions have been met:
a) The payment is made pursuant to the terms of an
assessment agreement between the redeveloper
(and owner) of the parcel of land to be redeveloped
(the "Redevelopment Property ") and the Authority;
b) Said assessment agreement provides that such
redeveloper is obligated to complete certain
private improvements upon the Redevelopment
Property in accordance with plans and specifications
which are in conformance with the ordinances and
regulations of the City of Chanhassen;
c) Said assessment agreement provides that the amount
of the assessment reduction payment shall be a
percentage of the value of the private improvements
for real estate tax assessment purposes, and that
the redeveloper and owner of said parcel, their
heirs, successors and assigns, shall not seek any
reduction in the annual real estate taxes paid in
respect of the Redevelopment Property below the
amount of such taxes which are payable in the
calendar year next following the calendar year in
which said private improvements are completed.
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_ 3.02. The amount of any assessment reduction payment
made pursuant to Modification No. 5 in connection with any parcel
of land shall not exceed the lesser of the following amounts:
a) The sum of the principal balance of the Project
78 -3 assessments levied against said parcel
(and accrued interest thereon computed in
accordance with Chapter 429 of Minnesota Statutes)
outstanding against the Redevelopment Property
at the time of the completion of the agreed
private improvements;
b) Seven percent of the Assessor's value of the agreed
private improvements measured upon completion
i not including the value of landscaping, parking,
and utility improvements constructed upon the
Redevelopment Property.
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already been certified to the Carver County Auditor in connection
with any parcel of land,any assessment reduction payments shall
_ be made directly to the Carver County Auditor as a credit
against the outstanding Project 78 -3 assessments (and accrued
interest thereon) levied against said parcel.
In the case of Project 78 -3 assessments which
have not been certified to the Carver County Auditor in connection
r with said parcel of land, any assessment reduction payment shall
be made directly to the Chanhassen City Treasurer as a credit
against the Project 78 -3 assessments (and accrued interest
thereon) which would be certified to the Carver County Auditor
for collection in future tax years.
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3.04. In the event that the redeveloper of any parcel
of land subject to an assessment agreement, shall have paid in
full the Project 78 -3 assessments (and accrued interest thereon)
subsequent to the date of execution of such assessment agreement,
r- then the assessment reduction payment shall be made directly
ito the redeveloper of such parcel.
3.05. The obligation of the Authority to make
i assessment reduction payments pursuant to Modification No. 5
shall be subordinated to the obligation of the Authority to make
payments on the Bonds issued either by the Authority or by the
City of Chanhassen in support of the Chanhassen Downtown
Redevelopment Project.
3.06. Any amounts to be paid pursuant to the above
r described assessment reduction program shall be paid only from
tax increments received by the Authority pursuant to Section 462.585
of Minnesota Statutes in connection with the Chanhassen Downtown
Redevelopment Project.
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3.07. In the event that the Authority determines that
the tax increment generated by the Downtown Redevelopment
Project is insufficient to pay:
a) payments of principal, premium (if any) and
interest which will be due in any given
calendar year on the Bonds, and
b) assessment reduction payments which will be due
in that same calendar year according to the
terms of any assessment agreements entered
into pursuant to Modification No. 5,
then the Authority's obligation to make such assessment reduction
payments shall abate until such time that the Authority determines
that such tax increment is sufficient to pay both such types of
payments. Any assessment reduction payments so abated shall not
bear interest during the period of such abatement. In the event
that such tax increment is sufficient to pay a) all payments of
principal,interest, premium (if any) and interest on the Bonds
and b) a portion (but not all) of the above described assessment
reduction payments, then such tax increment shall be applied
as follows:
First to satisfy the principal, premium (if any)
and interest due in that calendar year;
Second to satisfy assessment reductions owing under
assessment reduction agreements chronologically
(according to the date of execution of the
assessment agreements by the Authority) with tax
increment being applied to the satisfaction of payment
due under the most senior of such assessment agreements.
For purposes of this resolution, the term "Bonds"
means obligations issued either by the Authority or the City of
Chanhassen to finance the costs of the Chanhassen Downtown
Redevelopment Project, including but not limited to the costs of
Chanhassen Improvement Project 78 -3 and the costs of the assessment
reduction program which is described in Modification No. 5.
3.08. The above described assessment reduction program
shall terminate on , 1987, with no further
assessment reduction payments to be made on or after that date,
notwithstanding any language in any assessment agreement to the
contrary. The Authority, however, reserves the right to extend
the assessment reduction program for additional periods of time
beyond the , 1987 expiration date.
Passed and adopted this day of
19 , by the Housing and Redevelopment
Authority of the City of Chanhassen, Minnesota.
rman
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Attest:
Executive Director
Yes
No
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Absent
Exhibit A To Be Supplied
(A copy of Modification No. S)
_ CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
j� RESOLUTION
Dated: Resolution No.
Motion by Councilmember Seconded by Councilmember
T RESOLUTION APPROVING ASSESSMENT
REDUCTION PROGRAM FOR DOWNTOWN
REDEVELOPMENT PROJECT
WHEREAS, the City Council has approved the plan of
the Chanhassen Housing and Redevelopment Authority for the
Chanhassen Downtown Redevelopment Project (hereinafter the "Plan ");
and
WHEREAS, said Plan contemplated that the Authority
would pay a portion of the costs incurred by the City in
connection with the installation of utilities south of State
Highway No. 5 as a part of Public Improvement Project No. 78 -3; and
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WHEREAS, the Authority has transmitted to the City
a copy of the Authority's Resolution No. dated
19 , adopting Modification No. 5
to the Chanhassen Downtown Redevelopment Plan; and
WHEREAS, by said resolution the Authority has implemented
a program whereby the City would be reimbursed for those costs
of Project 78 -3 which were assessed pursuant to Chapter 429 of
Minnesota Statutes but which remain unpaid;
NOW, THEREFORE, BE IT RESOLVED, by the Chanhassen City
Council as follows:
1. Modification No. 5 to the Downtown Redevelopment Plan
as described in the Authority's Resolution No.
dated , 19 , (a copy of which is
attached hereto as Exhibit A is hereby approved.
2. The City Council hereby finds that the approval of
said Modification No. 5 would not have the effect of substantially
altering, or affecting the general land uses established in the
Chanhassen Downtown Redevelopment Plan and Project.
3. The City Council hereby finds that but for the approval
of said Modification No. 5 and the assessment reduction program
described in said Modification No. 5 the land in Chanhassen
Lakes Business Park will continue to be stagnant, underutilized,
and unproductive.
4. The City Council hereby finds that the entire Chanhassen
Downtown Redevelopment Project will not be feasible unless the
assessment reduction program described in Modification No. 5
is established and implemented.
5. The City Council hereby finds that the costs of
implementing the assessment reduction program described in
Modification No. 5 a) are expenditures necessary to carry out
the purposes of the Minnesota Housing and Redevelopment Act,
b) are expenditures necessary to prepare the Project 78 -3
assessment area for private development and improvement and c)
are a proper part of the public redevelopment cost of the
Chanhassen Downtown Redevelopment Project.
6. The findings made by the City Council in its Resolution
dated December 19, 1977, approving the Plan, and its
Resolution dated December 18, 1978, approving Modification No. 1
to the Plan, and its Resolution dated May 27, 1980, approving
Modification No. 3 to the Plan are hereby reconfirmed.
Adopted this day of
Attest:
City Clerk Manager
Yes
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Mayor
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Absent
Om
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Exhibit A To Be Supplied
(Copy of HRA Resolution Adopting
Modification No. 5)
HOUSING AND REDEVELOPMENT AUTHORITY
OF
CHANHASSEN, MINNESOTA
RESOLUTION APPROVING FORM OF ASSESSMENT AGREEMENT
Dated: _
Motion by Commissioner
Resolution No.
Seconded by Commissioner
WHEREAS „the Chanhassen Housing and Redevelopment
Authority has approved Modification No. 5 to the Chanhassen
Downtown Redevelopment Project; and
WHEREAS, said Modification No. 5 contemplated the
preparation of a form of assessment agreement between the
Authority and private redevelopers who wish to participate
in the assessment reduction program described in Modification
No. 5; and
WIiEREAS, the proposed form of such agreement has been
presented to the Authority for its review;
NOW, THEREFORE, BE IT RESOLVED, by the Chanhassen
housing and Redevelopment Authority as follows:
1. The form of assessment agreement, a copy of which
is attached hereto and made a part hereof as Exhibit A, is
hereby approved.
2. The Executive Director and Chairman of the Authority,
however, are not authorized to execute any such assessment
agreement with any redeveloper or land owner unless specifically
authorized to do so by a further resolution of the Authority.
Passed and adopted this day of
19 by the Housing and Redevelopment Authority of the City
of Chanhassen, Minnesota.
Chairman
Attest:
Executive Director
Yes No Absent
ASSESSMENT AGREEMENT
THIS AGREEMENT, made on o
19
and Redevelopment Authority in and
a public body corporate and politic
pursuant to Laws of Minnesota 1947,
being Minnesota Statutes, Sections
and
(the "Redeveloper ").
WITNESSETH:
r as of the day of
by and between The Housing
for the City of Chanhassen,
(the "Agency "), established
Chapter 487, as amended,
462.411- 462.711 (the "Act "),
WHEREAS, the Agency was created pursuant to the Act
and was authorized to transact business and exercise its powers
by a resolution of the City Council of the City of Chanhassen
(the "City ") ; and
WHEREAS, in furtherance of the objectives of the Act,
the Agency has undertaken a program for the clearance and
reconstruction or rehabilitation of blighted, deteriorated,
deteriorating, vacant, unused, underused or inappropriately used
areas of the City, and in this connection is engaged in carrying
out a redevelopment project known as the Chanhassen Downtown
Redevelopment Project (the "Project "), in an area (the "Project
Area "), located in the City; and
WHEREAS, as of the date of this Agreement there has
been prepared and approved by the Agency and the City a
redevelopment plan for the Project; and
WHEREAS, the Agency requested the County of Carver
(the "County ") to certify the current assessed value of the
real property within the Project Area pursuant to Section 462.585
of the Act thereby establishing the Project as a tax increment`
financing district; and
WHEREAS, the major objectives of the Redevelopment
r Plan are to: acquire for rehabilitation economically or .
functionally obsolete or underutilized buildings and land;
provide a redevelopment site of a character that will encourage
future development of the area and improve sources of public
revenue; elimiate blighting influences which impede potential
development within the aforementioned redevelopment project;
_ provide maximum opportunity for redevelopment by private enterprise,
consistent with the needs of the City as a whole; encourage
private rehabilitation of structures within the redevelopment
project; and
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WHEREAS, in order to achieve the objectives of the
Redevelopment Plan and particularly to make the land in the
Project Area available for redevelopment by private enterprise
for and in accordance with the uses specified in the Redevelop-
ment Plan, the Agency has determined to provide substantial aid
and assistance to the Project through the sale of bonds to finance
the public costs of the redevelopment of the Project Area; and
WHEREAS, the Agency believes that the redevelopment of
a portion of the Project Area pursuant to this Agreement, and
fulfillment generally of the Agreement, are in the vital and best
interests of the City and the health, safety, morals, and welfare
of its residents, and in accord with the public purposes and
provisions of the applicable State and local laws and requirements
under which the Project has been undertaken and is being assisted:
NOW, THEREFORE, in consideration of the premises and
the mutual obligations of the parties hereto, each of them does
hereby covenant and agree with the other as follows:
ARTICLE I. DEFINITIONS
Section 1.1 Definitions. In this Agreement, unless a different
meaning clearly appears from the context -:
"Act" means the Municipal Housing and Redevelopment
Act, Minnesota Statutes, Sections 462.411 et.seq., as amended.
"Agency" means the Housing and Redevelopment Authority
in and for the City of Chanhassen.
"Agreement" means this Agreement, as the same may be
from time to time modified, amended, or supplemented.
"Assessment Agreement" means any agreement substantially
similar to this agreement providing for payment by the Agency
of Project 78 -3 assessments from the tax increments received
by the Agency in connection with the Project.
"Assessment Reduction Payments" means payments made by
the Authority to either the City or to the County's auditor, as
a credit against Project 78 -3 assessments, pursuant to Article IV
of this Agreement or pursuant to agreements similar to this
Agreement withoter redevelopers of land in the Project Area.
"Market Value" or "Market Valuation" means the estimated
fair market value of real property as determined by the assessor
in accordance with Minnesota Statutes, Section 273.11 (or as
finally adjusted by any assessor, board of equalization, commis-
sioner of revenue, or any court).
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"Assessed Value" or "Assessed Valuation" means the
value of real property as determined by the assessor in
accordance with Minnesota Statutes, Section 273.13 (or as
finally adjusted by any assessor, board of equalization,
commissioner of revenue, or any court) against which the real
property tax is imposed.
"Assessor" means the Carver County Assessor or a
City Assessor having the powers of the Carver County Assessor.
"Bonds" means the general obligation bonds or
obligations issued by the City or the Agency to finance the
costs of the Project including but not limited to the Assessment
Reduction Payments made by the Authority pursuant to Modification
7 No. 5 to the Plan.
The term "Bonds" shall also include any general
obligation bonds or obligations issued to refund any Bonds.
"Certificate of Completion" means the certification
provided to the Redeveloper, or the purchaser of any part,
parcel or unit of the Redevelopment Property, pursuant to
Section 4.2 of this Agreement_
"City" means the City of Chanhassen.
"Construction Plans" means the plans, specifications,
drawings and related documents on the construction work to be
performed by the Redeveloper on the Redevelopment Property which
(a) shall be at least as detailed as the plans, specifications,
drawings and related documents which are submitted to the building
inspector of the City, and (b) shall include at least the
( following for each building: (1) site plan, (2) foundation plan;
(3) basement plan; (4) floor plan for each floor; (5) cross
sections of each (length and width); (6) elevations (all sides);
(7) landscape plan.
r "County" means the County of Carver.
"Critical Areas Act of 1973" means the statutes
located in Minnesota Statutes, Section 116G.01 et seq., as amended.
"Event of Default" means an action by the Redeveloper
listed in Article VI of this Agreement.
"Maturity Date" means the date when the principal of,
premium (if any), and interest on the Bonds are paid in full.
"Minimum Improvements" menas those improvements which
are more particularly described on Exhibit A attached hereto and
made a part hereof.
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"Minnesota Environmental Policy Act" means the
statutes located at Minnesota Statutes, Sections 116D.01 et
seq., as amended.
"National Environmental Policy Act" means the federal
law located at 42 U.S.C. § §4331 et seq., as amended.
"Plan" means the Chanhassen Downtown Redevelopment
Plan as described in the "Chanhassen Downtown Redevelopment
Project Amended Plan, February, 1980, Revised March 20, 1980"
booklet, as further amended from time to time by the Agency.
"Project" means the Chanhassen Downtown Redevelopment
Project as described in the "Chanhassen Downtown Redevelopment
Project Amended Plan, February 1980, Revised March 20, 1980"
booklet, as further amended from time to time by the Agency.
"Project Area" means the real property located within
the boundaries of the entire redevelopment district as described
in Figure 1 contained in the "Chanhassen Downtown Redevelopment
Project Amended Plan, February 1980, Revised March 20, 1980"
booklet.
"Project 78 -3 Assessments" means the costs of City of
Chanhassen Improvement Project 78 -3 which were specially assessed
against benefited real property pursuant to Chapter 429 of
Minnesota Statutes.
"Real Estate Taxes" means ad valorem taxes on real
property pursuant.to Chapter 273 of Minnesota Statutes and not
including any special assessments levied pursuant to Chapter 429
of Minnesota Statutes.
"Redeveloper" means
or its successors and assigns.
"Redevelopment Property" means the real property
which is more particularly described on Exhibit B attached hereto
and made a part hereof.
"Redevelopment Plan" means Plan.
"State" means the State of Minnesota.
"Tax Official" means any City or County assessor,
county auditor, City, County or State board of equalization,
the commissioner of revenue of the State, or any state or
federal district court, the tax court of the State, or the
State Supreme Court.
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ARTICLE II. REPRESENTATIONS AND WARRANTIES
Section 2.1 Representations by the Agency. The Agency makes
the following representations as the basis for the undertaking
on its part herein contained:
(a) The Agency is a housing and redevelopment authority
duly organized and existing under the laws of the State.
(b) The Project is a "redevelopment project" within
the meaning of the Act and was created, adopted and approved in
accordance with the terms of the Act.
(c) The Project is a
created, adopted, certified and
Statutes, Section 462.585.
"tax increment district"
approved pursuant to Minnesota
(d) The Agency has established the Project Area as
a "tax increment district" and has requested that the County
auditor of the County certify the Assessed Valuation of all
taxable real property in the Project Area pursuant to Minnesota
Statutes, Section 462.585.
(e) The activities of the Agency are undertaken for
the purpose of removing, preventing or reducing blight, blighting
factors, or the causes of blight, and for the purposes of
eliminating or preventing the development or spread of deteriorated
or deteriorating areas.
' (f) To finance the cost of the activities to be
undertaken by the Agency, the Agency proposes to use the proceeds
r of Bonds issued either by the City or the Agency and to pledge tax
increment generated by the Project Area to the payment of the
principal of and interest on the Bonds.
Section 2.2 Representations and Warranties by the Redeveloper.
The Redeveloper represents and warrants that:
(a) The Redeveloper is a corporation duly organized
and in good standing under the laws of the State of Minnesota,
is not in violation of any provisions of its certificate of
j incorporation, its by -laws, or the laws of the•State of Minnesota,
has power to enter into this Agreement and has duly authorized
the execution, delivery and performance of this Agreement by
proper corporate action.
(b) The Redeveloper will construct the Minimum
Improvements in accordance with the terms of this Agreement,
the Plan and all local, state and federal laws and regulations
(including, but not limited to, environmental, zoning, building
code and public health laws and regulations).
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(c) The Minimum Improvements constitute a permitted
use under the zoning ordinance of the City, a permitted use
under the Plan and the Act and will be constructed at a cost
at least Dollars
($ ) not including the Redeveloper's cost
of acquisition of the Redevelopment Property and not including
the cost of landscaping improvements, parking improvements, and
utility improvements constructed (or to be constructed) upon the
Redevelopment Property.
(d) At such time or times as may be required by law,
the Redeveloper will have complied with all local, state and
federal environmental laws and regulations, will have obtained
any and all necessary environmental reviews, licenses or
clearances under (and will be in compliance with the requirements
of ) the National Environmental Policy Act of 1969, the Minnesota
Environmental Policy Act, and the Critical Areas Act of 1973;
as to the Redevelopment Property that Redeveloper has received
no notice or communication from any local, state or federal
official that the activities of the Redeveloper in the Project
Area may be or will be in violation of any environmental law or
regulation (other than those notices or communications of which
the Agency is aware). The Redeveloper is aware of no facts the
existence of which would cause it to be in violation of any
local, state or federal environmental law, regulation or review
procedure or which would give any person a valid claim under the
Minnesota Environmental Rights Act.
(e) The Redeveloper will use its best efforts to
construct the Minimum Improvements in accordance with all
existing local, state or federal energy- conservation laws or,
regulations.
(f) The Redeveloper will obtain, in a timely manner,
all required permits, licenses and approvals, and will meet,
in a timely manner, all requirements of all local, state and
federal laws and regulations which must be obtained or met
before the Minimum Improvements may be lawfully constructed.
ARTICLE III. ASSESSMENT REDUCITON PAYMENTS
Section 3.1 Obligation of Agency to Make Assessment Reduction
Payments. Upon completion of the Minimum Improvements and
issuance of the Certificate of Completion, the Agency, from the
tax increment generated by the Proeect shall make a payment (in
the manner and in the amount provided hereinafter) in reduction
of the Project 78 -3 assessments which have been levied against
the Redevelopment Property.
In the case of Project 78 -3 assessments which have
then already been certified to the County's auditor for collection
with real estate taxes, said assessment reduction payment shall
be made directly to the County's auditor in full or partial
satisfaction, as the case may be, of said Project 78 -3 assessments.
_ In the case of Project 78 -3 assessments which
have not then been certified to the County's auditor for
collection with real estate taxes, said assessment reduction
payment shall be made to the City's treasurer in full or partial
satisfaction, as the case may be, of said Project 78 -3 assessments
In the event that the Redeveloper has then already
fully paid the Project 78 -3 assessment which have been levied
against the Redevelopment Property, said assessment reduction
payment shall be made directly to the Redeveloper or his
designated successors and assigns.
Section 3.2 Amount of Assessment Reduction Payment. The
amount of any assessment reduction payment made pursuant to this
Agreement shall be equal to the lesser of the following amounts:
(a) the sum of the principal balance of the
Project 78 -3 assessments levied against the
Redevelopment Property, together with accrued
interest thereon, both principal and interest
being computed as of the date of completion of
the Minimum Improvements; or
(b) seven percent (7%).of the value Minimum Improve-
ments, which shall be the Assessor's Market Value
of the Redevelopment Property measured upon
completion of the Minimum Improvements not in-
r eluding Mhe value (as determined by the Assessor)
of the underlying real estate, and not including
' the value (as determined by the Assessor)
of the landscaping, parking and utility
improvements constructed upon the Redevelopment
Property.
Section 3.3 Obligation to Make Assessment Reduction Pa ments
Subordinated�to Other Obligations. Any assessment reduction
payments which the Agency is obligated to make pursuant to this
Agreement shall be paid only from the tax increments received
by the Agency in connection with the Project.
In the event that the Agency determines that such
itax increment is insufficient to make both
(a) payments of principal,premium (if any) and
interest which will be due in any given calendar
j year on the Bonds, and
r (b) all assessment reduction payments due the
P Redeveloper or other persons who have joined in
assessment agreements with the Agency similar
to this assessment agreement
then (Section 3.1 of this Agreement notwithstanding) the Agency's
obligation to make assessment reduction payments to the Redeveloper
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shall abate until such time as the Agency determines that
such tax increment is sufficient to make both such types of
payments. Any assessment reduction payments so abated shall not
bear interest during the period of such abatement.
In the event that the Agency determines such tax
increment is sufficient to make all of the above described
payments on the Bonds but only a portion of the assessment
reduction payments due under the various outstanding assessment
agreements, including this Agreement, then such tax increment
shall be applied as following:
First, to satisfy the principal, premium (if any)
and interest due in that calendar year on
the Bonds, and
Next, to satisfy assessment reduction payments
owing under all then outstanding assessment
agreements, said payments to be made on the basis
of seniority (according to the date of execution,
by the Agency, of each such assessment agreement),
with such tax increment being applied to the
satisfaction of payments due under the most
senior of such assessment agreements.
Section 3.4 Termination of Entitlement to Pavment. Notwith-
stan ing any language in this Agreement to the contrary, the
obligation of the Agency to make any assessment reduction payment
to the Redeveloper (or his successors and assigns) shall become
null and void on . 1987, unless the
Redeveloper has obtained a Certificate of Completion on or
before said date.
ARTICLE IV. CONSTRUCTION OF MINIMUM IMPROVEMENTS
Section 4.1 Construction of Minimum Improvements. The
Redeveloper agrees that it will construct the Minimum Improvements
on the Redevelopment Property and at all times prior to Maturity
Date will not cause a reduction in the real estate taxes paid
in respect of the Redevelopment Property through:
(a) willful destruction of the Minimum
Improvements or any part thereof, and /or
(b) willful refusal to reconstruct the Minimum
Improvements if or damaged or destroyed property.
Section 4.2 Certificate of Completion.
(a) Promptly after completion of the Minimum
Improvements in accordance with the provisions of this Agreement
the Agency, upon the written application of the Redeveloper, will
furnish the Redeveloper with an appropriate instrument so certi-
fying. Such certification by the Agency shall be a conclusive
determination of satisfaction and termination of the agreements
and covenants in this Agreement to construct the Minimum
Improvements. Such certification and such determination shall
not constitute evidence of compliance with or satisfaction of
any of the Redeveloper's obligations to any holder of a mortgage
or to any insurer of a mortgage, securing money loaned to
finance the Minimum Improvements, or any part thereof.
(b) If the Agency shall refuse or fail to provide
any certification in accordance with the provisions of this
Section 4.2 of this Agreement, the Agency shall, within thirty
(30) days after written request by the Redeveloper, provide the
7 Redeveloper with a written statement, indicating in adequate
detail in what respects the Redeveloper has failed to complete
the Minimum Improvements in accordance with the provisions of
this Agreement, or is otherwise in default, and what measures or
acts it will be necessary, in the opinion of the Agency, for
the Redeveloper to take or perform in order to obtain such
certification.
I
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(c) The construction
shall be deemed to be completed
are substantially completed.
ARTICLE V. REAL ESTATE TAXES
of the Minimum Improvements
when such Minimum Improvements
Section 5.1 Real Estate Taxes. The Redeveloper agress that,
subsequent to comp etion o the Minimum Improvements and prior
to the Maturity Date, it will not cause a reduction in the
annual real estate taxes paid in respect of the Redevelopment
Property below the amount of such taxes payable in the calendar
year next following the calendar year in which the Redeveloper
obtains the Certificate of Completion, and that it will not
seek a reduction in the assessed value of the Minimum Improvements
below the value determined by the Assessor pursuant to
Section 3.2 of this Agreement:
(1) By seeking administrative review or judicial review
of the applicability of any tax statute determined by any Tax
Official to be applicable to the Project or the Redeveloper or
raising the inapplicability of any such tax statute as a defense
in any proceedings, including delinquent tax proceedings;
(2) by seeking administrative review or judicial review of the
constitutionality of any tax statute determined by any Tax
Official to be applicable to the Project or the Redeveloper or
raising the unconstitutionality of any such tax statute as a
defense in any proceedings, including delinquent tax proceedings;
(3) by willful destruction of the Redevelopment Property or any
part thereof; (4) by willful refusal to reconstruct damaged or
destroyed property; (5) by requesting the Assessor to reduce the
Market Value or Assessed Value of all or any portion of the
Redevelopment Property; (6) by petitioning the board of
equalization of the City or the board of equalization of the
County to reduce the Market Value or Assessed Value of all or any
portion of the Redevelopment Property; (7) by petitioning the
board of equalization of the State or the commissioner of revenue
of the State to reduce the Market Value or Assessed Value of all
or any portion of the Redevelopment Property; (8) by maintaining
an action in the District Court of the State or the Tax Court
of the State pursuant to Minnesota Statutes, Chapter 278, seeking
a reduction in the Market Value or Assessed Value of the
Redevelopment Property; (9) by applying to the commissioner of
revenue of the State requesting an abatement of real property
taxes pursuant to Minnesota Statutes, Chapter 270; and (10)
by maintaining any other proceedings, whether administrative,
legal or equitable, with any administrative body within the City,
the County, or the State or with any court of the State or the
federal government. The Redeveloper shall not, prior to the
Maturity Date, apply for a deferral of property tax on the
Redevelopment Property pursuant to Minnesota Statutes, Section
273.86.
Nothing in this Agreement shall limit the
discretion of the Assessor to assign to the Redevelopment
Property a Market Value to the Redevelopment Property in excess
of the Minimum Market Value established pursuant to Article V
of this Agreement.
ARTICLE VI. EVENTS OF DEFAULT
Section 6.1 Events of Default Defined. The following shall
Fe 'Events of Default' under this Agreement and the term
"Event of Default" shall mean,whenever it is used in this
Agreement (unless the context otherwise provides), any one or
more of the following events (and the term "default" shall mean
any event which would with the passage of time or giving of notice,
or both, be an "Event of Default" hereunder):
(a) Failure of the Redeveloper to complete the
Minimum Improvementsat a cost equal to or
exceeding the amount specified in 11c of Section
2.2 of this Agreement.
(b) Failure of the Redeveloper to complete the
Minimum Improvements on or before the date
stated in Section 3.4 of this Agreement.
(c) Failure by the Redeveloper to observe and
perform any covenant, condition, obligation or
on its part to be observed or performed
hereunder, within thirty (30) days after written
-10-
—
notice to the Redeveloper specifying such
failure and requesting that it be remedied
(or within such other period as otherwise
expressly provided in this Agreement); or
if the failure is by its nature incurable
within such thirty (30) days, failure by
the Redeveloper to furnish to the Agency
satisfactory assurances that the Redeveloper
can and will cure such failure or failures
within reasonable time.
(d)
If the Redeveloper shall admit in writing
its inability to pay its debts generally as they
become due, or shall file a petition in bankruptcy
or shall make an assignment for the benefit of
its creditors, or shall consent to the
appointment of a receiver of itself or of
the whole or any substantial part of the
Redevelopment Property.
_ (e)
If the Redeveloper shall file a petition or
answer seeking reorganization or arrangement under
the federal bankruptcy laws.
(f)
If the Redeveloper, on a petition in bankruptcy
filed against it, be adjudicated a bankrupt,
or a court of competent jurisdiction shall enter
r
an order or decree appointing, without the consent
of the Redeveloper, a receiver of the Redeveloper
or of the whole or substantially all of its property,
_
or approve a petition filed against the Redeveloper
seeking reorganization or arrangement of the
Redeveloper under the federal bankruptcy laws,
and such adjudication, order or decree shall not
r
be vacated or set aside or stayed within sixty
(60) days from the date of entry thereof.
r Section 6.2
Remedies on Default. Whenever any Event of
Default referredd.to in Section 9.1 of this Agreement occurs, the
Agency may make
any one or more of the following actions;
(a)
Cancel and rescind this Agreement.
(b)
Withhold the Certificate of Completion.
(c)
Cancel any pending Assessment Reduction Payments
due under the terms of this Agreement, causing
a forfeiture of such payments in favor of the
Agency.
(d)
Take whatever action at law or in equity may
appear necessary or desirable to the Agency to
collect from the Redeveloper full reimbursement
for any Assessment Reduction Payments previously
made pursuant to this Agreement.
-11-
Section 6.3 No Remedy Exclusive. No remedy herein conferred
upon or reserved to the Agency is intended to be exclusive of
any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every
other remedy given under. this Agreement or now or hereafter
existing at law or in equity or by statutes. No delay or omission
to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a
waiver thereof, but any such right and power may be exercised
from time to time and as often as may be deemed expedient. In
order to entitle the Agency to exercise any remedy reserved to
it, it shall not be necessary to give notice.
Section 6.4 No Additional Waiver Implied by One Waiver. In
the event any agreement contained in this Agreement should be
breached by either party and thereafter waived by the other
party, such waiver shall be limited to the particular breach so
waived and shall not be deemed to waive any other concurrent,
previous or subsequent breach hereunder.
ARTICLE VII. ADDITIONAL PROVISIONS
Section 7.1 Conflict of Interest; Agency Representatives Not
In ivi wally Liable. No member, official or employee of the
Agency shall have any personal interest, direct or indirect, in
the Agreement, nor shall any such member, official, or employee
participate in any decision relating to this Agreement which
affects his personal interests or the interests of any corporation,
partnership, or association in which he is, directly or indirectly
interested. No member, official, or employee of the Agency shal
be personally liable to the Redeveloper or any successor in
interest, in the event of any default or breach by the Agency
or for any Assessment Reduction Payments which may become due
under the terms of this Agreement.
Section 7.2 Duty of Agency to Act Reasonably. Wherever this
Agreement requires the Agency to approve any action of the
Redeveloper, it is understood and agreed that the Agency will
not unreasonably withhold or delay such approval.
Section 7.3 Titles of Articles and Sections. Any titles of
the several parts, Articles, and Sections of this Agreement are
inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 7.4 Notices and Demands. Except as otherwise
expressly provided in this Agreement, a notice, demand, or other
communication under this Agreement by either party to the other
shall be sufficiently given or delivered if it is dispatched by
registered or certified mail, postage prepaid, return receipt
requested, or delivered personally and
-12-
_ (a) in the case of the Redeveloper, is addressed
to or delivered personally to the Redeveloper
at
(b) in the case of the Agency is addressed to or
delivered personally to the Agency at Chanhassen
City Hall or at such other address with respect
r to either such party as that party may, from time
to time, designate in writing and forward to
the other as provided in this Section.
Section 7.5 Counterparts. This Agreement is executed in any
number of counterparts, each of which shall constitute one and
the same instrument.
Section 7.6 Notice to Subsequent Purchasers. The recording
or i — `ling of this Agreement with the County Recorder or County
Registrar of Titles shall constitute notice of this Agreement
to any subsequent purchaser or encumbrancer of the Redevelopment
I Property, or any part thereof, whether voluntary or involuntary,
and shall be binding upon them.
IN WITNESS WHEREOF, the Agency has caused this Agreement
r to be duly executed in its name and behalf and its seal to be
hereunto duly affixed, and the Redeveloper has caused this
Agreement to be duly executed in its name and behalf and its
corporate seal to be hereunto duly affixed, on or as of the
date first above written.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF CHANHASSEN
By
its
And
its
r
t
Name of Redeveloper)
By
its
And
its
i
-13-
STATE OF MINNESOTA)
ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me
this day of , 19 , by
of the Housing and Redevelopment Authority of the City of
Chanhassen, Minnesota.
Notary Public
County:
My Commission Expires:
STATE OF MINNESOTA)
) ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me
this day of 19 by
and the and
of
a corporation, on behalf of said
corporation.
Notary Public
County:
My Commission Expires:
-14-
EXHIBIT A
"SPECIMEN ONLY"
"Minimum Improvements" means a 20,000 square
foot office building constructed of tilt -up concrete panels
and masonry.
I
EXI9IBIT B
"SPECIMEN ONLY"
Lot 1, Block 1, Chanhassen Lakes
Business Park, according to the
map or plat thereof, on file and
of record in the Office of the
County Recorder, in and for
Carver County, Minnesota.
i�
Corrments On Assessment Agreement
I
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P.
1
Name of Redeveloper must be supplied.
P.
?
Name of Redeveloper must be supplied.
7
P.
3
orctiopn2.2P� must be revised if Redeveloper is an individual ers
P.
4
Estimated construction cost must be supplied.
P.
8
Expiration date for assessment reduction program must be supplied.
P.
13
Redeveloper's address must be supplied.
I
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HOUSING AND REDEVELOPMENT AUTHORITY
OF
CHANHASSEN, MINNESOTA
RESOLUTION APPROVING PARTICIPATION OF
FLUOROWARE, INC. IN ASSESSMENT
REDUCTION PROGRAM
Dated: Resolution No.
Motion By Commissioner Seconded by Commissioner
WHEREAS, Fluoroware, Inc. (Fluoroware), the owner
and developer of Lots 8 and 9, Block 5, Chanhassen Lakes
Business Park, Carver County, Minnesota (the "Subject Property ")
appeared before the Authority on March 20, 1980, and June 5,
1980, and requested that the Authority assist Fluoroware in its
development of the Subject Property by utilizing a portion of
tax increments received by the Authority pursuant to Section 462.585
of Minnesota Statutes to pay a portion of the costs of City of
Chanhassen Project 78 -3 which was assessed against benefited
properties including the Subject Property; and
WHEREAS, the Authority on June 5, 1980 approved such
assistance to Fluoroware in the form of a purchase of the
Subject Property and a subsequent resale of the Subject Property
at a reduced price; and
WHEREAS, the above - described action of June 5, 1980,
was contingent upon the Authority's bond counsel issuing an
approving opinion for such assistance to Fluoroware; and
WHEREAS, Fluoroware, relying on the Authority's action
of June 5, 1980, proceeded to complete its development of the
Subject Property; and
WHEREAS, the Authority by its Resolution No.
dated , 19 , adopted Modification No. 5
to the Chanhassen Downtown Redevelopment Project, thereby
instituting a comprehensive program for the reduction of the
Project 78 -3 assessments on all land in Chanhassen Lakes
Business Park including the Subject Property; and
WHEREAS, the assessment reduction program described
in said Modification No. 5 is similar in substance to the form
of assistance to Fluoroware which was contemplated by the
Authority in its action of June 5, 1980;
r
Ir
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NOW, THEREFORE, BE IT RESOLVED, by the
Chanhassen Housing and Redevelopment Authority, as follows:
1. The participation of Fluoroware in the assessment
reduction program for the City of Chanhassen Public Improvement
Project 78 -3 area is hereby approved retroactively provided
that Fluoroware execute an assessment agreement with the
Authority in the form attached hereto and made a part hereof
as Exhibit A.
2. The Chairman and Executive Director of the Authority
are hereby authorized and directed to execute said contract
on behalf of the Authority.
Passed and adopted this day of
19 by the Housing and Redevelopment Authority of the City
of Chanhassen, Minnesota.
airman
Attest:
Executive Director
Yes No Absent
-2-
Exhibit A To Be Supplied
Copy of Approved Assessment Agreement)
LARSON & MERTZ
ATTORNEYS AT LAW
~ 1900 FIRST BANK PLACE WEST
^ RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA 55402 TELEPHONE
CRAIG M. MERTZ
_ (612) 333 -1511
OF COUNSEL December 8, 1981
HARVEY E. SKAAR
MARK C. MCCULLOUGH
^ Chanhassen HRA
c/o Scott A. Martin
Executive Director
Box 147
Chanhassen MN 55317
Re: HRA General
Insurance Requirements
Dear Scott:
Per our discussion of,last week, I have contacted Dan Hoffman of
the Dolliff, Inc, insurance office, current servicing agents for
the City, concerning general insurance requirements for the HRA.
As the HRA is a legal entity, separate and apart from the City,
i.e., the HRA has the power to contract in its own name, collect
and expend funds, own and lease land, engage employees, etc., it is
my view that it has liability exposures which are clearly dis-
tinguishable from those of the City. Therefore, it is my view that
the HRA should place in force such insurance coverages as may be
! indicated at this time.
1
Attached is Dan Hoffman's letter of December 7th to me covering his
r views on the issue. Please note his comment that the HRA coverages
can be added to the present City policies, except that the Public
Officials Liability coverage depends upon an evaluation by the
insurer of an application for coverage.
I suggest this matter be taken up w' he HRA at its next meeting.
ery trul you
RUSSELL H. LARSON
Chanhassen HRA.Attorney
RHL:ner
enc
..•`� ..� �.,'i Y. iii !-'�__..
A F!.
'r
DEC ^ 0 1981
DOLLIFF, INC./ INSURANCE
2500 DAIN TOWER
MINNEAPOLIS, MINNESOTA 55402
612 338 -7021
December 7, 1981
r
I Mr. Russ Larson
Larson & Mertz
Attorneys at Law
1900 First National Bank Building
Minneapolis, Mn. 55402
Re: Chanhassen Housing and Redevelopment Authority
Dear Russ:
I'm writing in response to your question last week, "What insurance coverage does
the Chanhassen H.R.A. need ?" From what you have told me over the phone, there is
17 an immediate need for General Liability coverage on some vacant .land which is now
l owned by the H.R.A. Other coverages that will probably be needed include Hired
and Non -Owned Auto Liability, Workers' Compensation, Fidelity Bond, and Property.
Continental Insurance Company, the major carrier for the City, has agreed to provide
the above coverages, primarily by adding the Chanhassen H.R.A. to the City's
policies as an additional named insured. The properties would most likely be
insured separately, as they are acquired.
As we discussed, there definitely is a Public Officials Liability exposure as
well. I've spoken with the City's carrier for this coverage, International Surplus
Lines Insurance Company. They are agreeable to extending this protection to the
Chanhassen H.R.A. The size of the premium which they'll charge, and whether
they'll add it to the City's policy or issue a separate one, depend upon their
evaluation of an application for coverage, which they require prior to binding the
protection.
Please let me know how you wish me to proceed. If I am to provide this protection,
then I'll need additional information as well as the application for Public
Official's Liability.
Sincere,
Daniel A. Hoffman
DAH /ddl
Established 1929
I
1 LAIt30?i �: MIURTZ.
ATTORNEYS AT LAWS
1900 FIRST NATIONAL BAN. BUILDING
RUSSELL H. LARSON - MINNEAPOLIS,.MINNESOTA 55402
CRAIG M. MERTZ TELEPHONE
1612) 335 -9565
OF COUNSEL June 26, 1980 -
HARVEY E.SKAAR
MARK C. MtCULLOUGH
Chanhassen City Council
C/o Donald W. Ashworth, City Manager
Box 147
Chanhassen MLQ 55317
Re: Public Officials and Employees
Liability Policy
Umbrella Liability Coverage
Dear Council Members,
In accordance with your request that we review and comment on
Public Officials and Employees Liability and Umbrella Liability
coverages, we submit the following report:
PUBLIC OFFICIALS AND EMPLOYEES LIABILITY POLICIES
Comprehensive general liability coverages are limited to lawsuits
based on tort, i.e., bodily injury including death, and property
damage. In recent years, public officials and employees have
increasingly become targets of lawsuits seeking money damages, for
which coverage is not provided under the usual comprehensive general
liability policy. The insurance industry is aware of this exposure
of public officials and employees to the risks of these lawsuits
and now offers liability insurance policies to cover the risks not
covered by the comprehensive general liability policies.
The report of Andrew F. Whitman of Risk Consultants adequately
addresses the risks commonly covered by both the comprehensive general
and public officials liability policies, and it would be unnecessarily
repetitive for us to repeat his discussion in this report.
We have attempted to measure the exposure of the City and its
officials and employees to the risks covered by the usual public
officials and employees liability policy, and we have concluded that
the risks are low,,but do exist. Chanhassen is a rapidly expanding
community with increasing requests made of the City to grant
development authority and a need to deal with a myriad of other
problems, all of which require decision at some level of municipal
government.
Chanhassen City Council
June 26, 1980
Page Two
It is our observation that the City Council and staff exercise a
great deal of care and discretion in the decision - making process,
but we are aware of the increasing pressures of decision and the
difficulties of choice which are often presented. Hence, we
conclude that while our analysis indicates a low risk, at present,
of litigation seeking money damages in areas not covered by the
comprehensive general liability coverage, we are among the first to
recognize that the risks of such litigation are increasing almost
on a daily basis.
It is, of course, the function of the Council to decide whether to
provide insurance coverage for the City, its officials and employees
against litigation for money damages not covered by the usual
comprehensive public liability policy, and this decision must be
based on an evaluation by the Council of the potential risks of
this type of litigation.
The only public officials and employees policy offered to the City
in the bidding process was that issued by International Surplus
Lines Insurance Company tendered by Wood Nelson Co. We are also
aware that the John H. Crowther Inc. agency offers this policy and
we spoke with its underwriter, George Schulte, concerning coverage
and premium. The policy w ;ll covers the volunteer commission and
the volunteer fire department members. Ms. Schulte quoted a three -
year policy with coverage of $1,000,000 for $4,736 plus a 3%
($142.08) surplus lines tax, or an annual premium of $1,752 +
38 ($52.56) tax. The policy carries a deductible of $1,000 for
each official and employee with a $5,000 aggregate deductible.
With respect to the International Surplus Lines coverage, certain
exclusions should be carefully noted by the Council should it
decide to provide coverage under International's policy. These
exclusions are 4(a) and 4(b) shown on the attached portion of the
specimen policy. Reduced to simple terms, International would not
cover a mandamus action brought by a developer to compel the City
r to grant plan or zoning approval, or the issuance of a license or
permit. For example, the Apple Valley action to seek a building
permit would not be covered. However, should a developer sue the
City, its Council members or employees for money damages resulting
from the denial of an approval, coverage would be afforded under the
policy, subject to the deductible.
We do not find this exact exclusion in the two other policies we
examined (Midland and Republic) but each contains language which
excludes payment in connection with any claim made against the
Chanhassen City Council
June 26, 1980
Page Three
insureds "which shall be deemed uninsurable under the law." We
seriously question whether a mandamus action against the City or
its officials is a risk insurable under the law, but we have not
researched the issue.
UMBRELLA LIABILITY POLICY
Minnesota Statute 466.04 places a $100,0001$300,000 limit on the
tort liability of a City and its employees. As pointed out in the
Whitman report, this raises the issue of whether the City should
carry umbrella liability insurance in excess of the statutory
liability limits.
We will not attempt in this report to address the issue of whether
the statutory dollar limitation is constitutional, except to observe
that in a very serious case involving proven substantial losses in
excess of the statutory limits, a court may easily find that the
limits are unconstitutional, even though past court precedent suggests
that unconstitutionality would probably be applied prospectively.
i
As you know, umbrella liability coverage as it applies to a muni-
cipality is designed to afford tort liability coverage to the City
and its employees in excess of the $100,000/$300,000 tort liability
coverage provided by the comprehensive general liability policy
(underlying coverage).
As has been pointed out by Mr. Whitman in his report, in deciding
whether or not to purchase umbrella liability coverage the following
are among the factors he cites as requiring consideration:
A. Reasons for coverage above statutory limits:
1. Risk of having statutory tort limits declared unconsti-
tutional.
2. Non -tort actions not covered by statutory limits:) Not
a. contractual liability )covered
b. security law violations )under Inter -
c. breach of fiduciary duties )state policy
d. any other non -tort actions. )
r 3. City desires additional insurance to compensate severely
i injured citizens in excess of the statutory limits.
B. Reasons for no coverage above statutory limits:
r
1. High premiums
2. Insurance automatically increases limits under Minnesota law.
- 3. High limits are an "invitation to suit"
4. Umbrella may have significant exclusions.
Chanhassen City Council
, 1980
Pag Jul, {{ Four
The only specimen policy of umbrella liability coverage (Interstate
'- Fire & Casualty Company) submitted to this office for review limits
its coverage to tort liability, i.e., accidents. The policy, in
our opinion, does not cover non -tort contractual liability or any
other non -tort action. We have not been afforded the opportunity
i
to review the Puritan Insurance Company policy.
The premium costs for the cited policies, each with $1,000,000 of
coverage, are as follows:
Interstate Fire & Casualty Company $2,000.00
Puritan Insurance Company $2,450.00
Each policy has a $10,000 rentention, i.e., deductible, if there is
- no underlying coverage. For example, leaching from the City stock -
pile of salt /sand causing damage town abutting property owner's land
is not covered under the usual comprehensive general liability policy.
It would be covered under the umbrella coverage, subject however, to
the $10,000 retention (deductible).
SUMMARY
In summarizing the above report, the Council has the following choices:
1. Purchase Public Officials and Employees liability coverage to
protect City officials and employees from money damage claims
not covered by comprehensive general liability policy,
_ subject to the applicable deductible, or
2. Purchase Umbrella Liability insuring against catastrophic tort
losses in excess of the $100,000/$300,000 coverage provided
by the comprehensive general liability policy, or
3. Purchase both coverages, or
4. Purchase neither policy, relying on the statutory tort limita-
tions of $100,000/$300,000 and the assumption that money
damage claims against officials and employees not covered under
the comprehensive general policy can be defended by the office
of the City Attorney on the basis of governmental immunity
(Minnesota Statute 466.03 attached) and for a cost within the
r applicable deductible of the public officials and employees
i policies.
We shall be pleased to discuss this subject with the Council at its
next regular meeting.
Very truly yours,
RUSSELL H. LARSON
RHL:ner Chanhassen City Attorney
cc: Andrew F. Whitman
ZNTE,PA6 rWl*4e.
The Company shall not be liable to mare payment for Luss in connection with any claim made against`
the Insureds allegedly, based upon or arising out of any one or more of the following:
G� 1. gaining any personal profit or advantage to which they were not legally entitled;
2. the return by the Insureds of any remuneration paid in fact to them' if payment of such remuneration
G` shall be held by the courts to be in violation of law;
3. brought about or contributed to by the dishonesty of the Insureds, however, notwithstanding the fore-
going, the Insureds shall be protected under the terms of this policy as to any claims upon which suit is
brought against them by reason of any alleged dishonesty on the part of the Insureds, unless a judgment or
other final adjudication thereof adverse to the Insureds shall establish that acts of active and deliberate
dishonesty committed by the Insureds with actual dishonest purpose and intent were material to the cause
of action so adjudicated;
4. a. claims, demands or actions seeking relief, or redress, in any form other than money damages-,
b. for fees or expenses relating to claims, demands or actions seeking relief or redress, in any form other
r than money damages;
- --
i
5. a. any damages, whether direct, indirect or consequential, arising from, or caused by, bodily injury,
personal injury, sickness, disease or death;
b, loss or criminal abstraction of, damage to or destruction of any tangible property or the loss of use
of such property by reason of the foregoing;
6. a. false arrest, assault and battery, detention or imprisonment, or malicious prosecution;
b. defamation, including, but not limited to libel or slander;
c. a publication or utterance in the course of or related to advertising, broadcasting 'or telecasting
activities conducted by or on behalf of the Public Entity;
d. wrongful entry or eviction or other invasion of the right of private occupancy;
r-- e. inverse condemnation;
(
I. strikes, riots or civil commotions;
- 7. the willful violation of statute or ordinance committed by or with the knowledge or consent of an In-
sured;
' 8. the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemi-
r- cals, liquids or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the
I atmosphere or any watercourse or body of water;
I
9. The Insured's activities in a fiduciary capacity as respects any employee benefit plan.
Exclusions (1.) and (2.) do not apply to Coverage B.
i
CONDITIONS
1. Warranty Clause
It is represented and warranted that the particulars and statements contained in the written proposal form,
copy of which is attached hereto, and the Declarations are reaffirmed as of the inception date of this Policy, and
r are the basis of this Policy and are considered as incorporated in and constituting part of this Policy.
2. Discovery Period
r If the Company shall cancel or refuse to renew this Policy, the Public Entity or the Insureds shall have the
` right, upon payment of an additional premium of 20% of the premium hereunder, to an extension of the cover
granted by this Policy in respect of any claim or claims which rhay be made against the Insureds during the
period 12 months after the date of such cancellation or non - renewal, but only in respect of any Wrongful Act
committed before the date of such cancellation or non - renewal, provided, however, that the application of this
extension must be made to the Company in writing and payment of the premium must be made 10 days prior
Fto the effective date of cancellation or within 10 days following expiration of the Policy.
ISUC r, 4 (3/ 79) -
F
Page 2 of 8
7
I
TORT LIABILITY § 466.03
er & Light Co., 1937, 2110 \lion. 51.-x,
271 N.w. Ill 7.
Evidence was insufficient to utake
issue for jury of ueghgeuce of tloutie-
ipnlity, where daninges through lelek-
hig till of sewer resulted from extra -
ordinory rainfall. Power c. Village of
Hibbing, 3930, 182 Minn. 66, 2:18 N.
\C- 597.
where prinery and secondary elve-
tric wires were placed in such juxta-
position that, atltiwugh the itlihA
clearance is n;tfe, it might h:nr been
foreseen dolt, through natural c:uts-
es, it would become so lesseucd ns to
become d:uigerous, and whore it som(!-
what different but slightly more ex-
pensive tlalhod of construction wodd
have prevented ;alt d:mgel, the qurs-
tion of negligence is one of filet.
Goer v. Vilhtge of Ftcpueil, 111231157
Minn. 228. IN; N.1\'. 171.
Evidenee ;utthorired subinilting to
the jnry whether the defendant oily
was negligetlt in so constructing
street improvements as to divert stir -
face water from a naiiind course and
cast it of Inicate prolwrty. weber
v. Pity of \linne:q;olis, AM, 182
Minn. 170, 151; N.W. 287.
205. Review
whether activities of school district
Ill establishing school bas routes
rattle within ^discretiotlary famction
or duty" exception to its liability for
its forts <onW not b, . raised for first
lime otl appeal. Daher r: no`lofs,
1973, 298 \line. 111, 212 1q.w1:d $:i6.
466.03 Exceptions
Subdivision 1. Scope. Section 466.02 does not apply to any
claim enumerated in this section. As to any such claim every
municipality shall be liable only in accordance with the applica-
ble statute and where there is no such statute, every municipali-
ty shall be immune from liability.
I Subd. 2. Worker's compensation clatims. Any claim for in-
jury to or death of any person covered by the worker's compen-
sation act.
Subd. 3. Tax claims. Any claim in connection with the as-
sessment and collection of taxes.
_ Subd. 4. Accumulations of snow and ice. Any claim based
on snow or ice conditions on any highway or other public place,
except when the condition is affirmatively caused by the negli-
gent acts of the municipality.
Subd. 5. Execution of statute. Any claim based upon an act
or omission of an officer or employee, exercising due care, in the
execution of a valid or invalid statute, charter, ordinance, resolu-
tion, or regulation.
Subd. 6. Discretionary acts. Any claim based upon the per -
formance or the failure to exercise or perform a discretionary
function or duty, whether or not the discretion is abused.
133
§ 466.03 MUNICIPALITIES
Note I
Subd. 7. Other immunity.
as to which the municipality
provisions of any other statute.
Any claim against a municipality
is immune from liability by the
Laws 1963, c. 798, § 3. Amended by Laws 1975, c. 359, § 23.
Cross References
Exceptions to liability, see g 466.03.
Insurance, see § 4fi6.lXt,
Law Review Commentaries
Municipal mipervision of recrea- The discretionary esceptiau alai
tiotinl facilities.. Nov. 1964, 49 Man. unmic }uai 10"t liability: Are :yep ra is-
Law Review 1-13. al. April MIN, ;,2 Minu.Gnt' Hoc ii-IN
Prospective overruling of sovereign
inuuunitY. \L•l,v 1968, ,17 Slinn.l..Itcc.
1124.
1047.
Notes of Decisions
In general I
Artificial cause of Ice, prior law on
Ice and snow 7
Contributory negligence, prior law on
Ice and snow 10
Discretionary functions 2
Execution of statute 3
Ice and snow 5_12
In general 5
Artificial cause of ice 7
Contributory negligence 10
Jury questions 11
Notice and evidence 9
Prior law in general 6
Ridges and depressions in Ice 8
Sufficiency of evidence 12
Jury questions, prior law on Ice and
snow 11
Notice and evidence, prior law on
snow and Ice 9
Prior law In general, Ice and snow 6
Ridges and depressions in Ice, prior
law on Ice and snow 8
Sufficiency of evidence, prior law on
fee and snow 12
Worker's compensation 4
I. In general
tiovereigu oa n unity of stave from
tort liabilily, :rs it existed until An-
gust 1, 1976, did unt. cxteud to wails
III furls couwdlled ill it,; proprietary
Cala"ily. tiusla v. State, 1976; 217
N.w.2d !X17.
01a,ralioo of prison industries prn-
granu was a °proprietn j -y a(tivity.;
thus, till .uvcreigo inumutily of
Stah• from tort liabilily, as it exishvl
until August 1, 11)76, did not: extend
to claim ngainst State arising out of
injuries .suslained by prism inma is
While tvorkiltg oil poach pp,ss in
prison factory; thus• such olnirn
could Is- maintained ill courts of
state: and, till", Slate t'In iu" Com-
mission lacked jurisdiction over Ihr
claim: disavowing Iwiersoil v. oily
o£ Minmmpoli.s, 264 \fine. 1..3, Hs
N.R .2d 223. Id.
City's waiver of goverunu•utal itu-
uuulily did not cren h� duty toward in•-
eupauts of moth who died or were
Injured as it result of fire which oe-
eurred after city had issued building
permit for remodeling. Ifoffert v.
0watolloa fall 'Towne Motel, lac.,
1:17.2, 2nr:t ylinu. °n, 11X9 N.w.2d 13R.
Provisions of tbis chapter ren:ov-
big defense of limnunity front tort
liabilily for arts of nnmlripality do
ual create :up• 11M liahility for a
nuaiieipnlity; in order to recover
agaia.w. rity, Pliinlallts must shmr
Iir.-nell of some duty (weal -then. in
their indkidual capacities ;old not
13 -1
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
'-i 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
■u -• (612) 937 -1900
STAFF REPORT
TO: Chanhassen BRA nnn
FROM: Scott A. Martin, Executive Director
DATE: December 16, 1981
RE: Status of HRA Funds for General Operating Expenses and
Downtown Redevelopment Project Public Improvement and
Acquisition Costs.
As directed at the HRA meeting of December 3, 1981, I have
r prepared the attached Fund Status Reports for HRA Funds #460
(operating) and #604 (Downtown Improvement Project) for your
review. I have also included a budget report for Fund #604,
which shows the budget adopted as part of the Downtown Project
Bond Issue in August, 1981.
Fund Status Reports
The Fund Status Reports show a breakdown of expenditures attributable
to individual vendors for each fund during 1980 and 1981.
The 1981 report for Fund #460 is.for the period ending on October
31, 1981. A year -end report will be provided to you when available.
The 1981 Fund Status Report for #604 includes all receipts and
expenses since this fund was established in 1980, and will remain
active until the Downtown Project is completed.
Fund #604 Expenditure Budget Report
Fund #604 is the fund to which Bond proceeds were credited.
Prior to receipt of bond proceeds, this fund carried a deficit
of over $200,000,. which was due primarily to consulting service
expenses in 1980 (deficit balance as of December 31, 1980 was
$146,715.60). Therefore, the budget for consulting services
has already been exceeded by a rather substantial amount.
As noted, the Capitalized Interest monies are pledged to a separate
Debt Service Fund to pay interest due on the bonds beginning
next August.
I
Page 2
$60,450.01 in Accrued interest earned from the time of sale to
the time of receipt of bond proceeds,.unbudgeted bond discount
monies totaling $6,905.82 and all other interest earned to date
must be deposited in the Debt Service Fund according to Bond
Counsel. Therefore, the Bond Debt Service Fund has a current
- balance of $708,646.87.
The actual amount of remaining funds available in #604 with which
the HRA may use discretion in making specific application of
monies is $261,516.05. Of this, $39,160.50 is earmarked for
acquiring the purchase option for the Riviera property, and
approximately $160,000 is. needed for acquisition of the Huber
Property. This leaves roughly $62,000 for obtaining additional
purchase options and paying future attorney and engineering
fees.
Recommendation
In light of the fact that the "Consulting Services" account
was underbudgeted and acquisition monies overbudgeted in relation
to immediate needs for completion of Downtown Project planning,'
I recommend adoption of a revised budget for Fund #604, as follows:
Application of Bond Proceeds
Acquisition and Relocation
of Instant Web, 'Inc.
Capitalized Interest
Option and Acquisition Costs
for Riviera, Havlik, Huber
and Other Properties
Current
Budgeted
Expenditures
$3,500,000
Revised
Budget
$3,482,673
600,000 600,000*
300,000 266,849.03
,Consulting Services 200,000 250,000
Issuance Expenses 25,000 25,477.97
Total $4,625,000 $4,625,000
*Plus interest earnings.
The recommended revised budget provides for roughly $44,000 in
acquisition monies beyond that needed to acquire Huber and obtain
an option agreement for the Riviera; and for approximately $18,000
for future consulting services. Field Survey work was authorized
Page 3
— at
a cost not to exceed
$10,000, and legal fees
for acquisition
of
Huber and possibly
others could amount to
$5,000 or more if eminent
domain proceedings are
initiated.
Report
Attachments:
— 1.
1980 Downtown Tax
Increment Fund #460 -
Status Report
2.
1981 Downtown Tax
Increment Fund #460 -
Status Report
3.
Fund #604 - Status
Report as of December
31, 1980
4.
Fund #604 - Status
Report as of December
14, 1981
5.
Fund #604 - Budget
and Status Report
FUND
STATUS REPORT
BRA OPERATING BUDGET
1980 DOWNTOWN
TAX INCREMENT -FUND #460
(Period Ending December 31, 1980)
r
BALANCE 12 -31 -79
$ 863.10
RECEIPTS
Sale of Documents
$ 10.00
Interest Charged
(2,856.63)
Carver County Treasurer
53,874.41
TOTAL RECEIPTS
$ 51,027.78
DISBURSEMENTS
PRINTING & PUBLISHING
Carver County Herald
40.22
LEGAL & FISCAL
Larson & Mertz
9,811.35
CONSULTING
B.R.W.
7,144.88
— Coordinated Management
453.76
VonKlug & Associates
371.30
LAND ACQUISITION
State Bank of Chanhassen (Holiday)
7,500.00
MISCELLANEOUS
— Transfers: CBD Parking Lot
10,960.80
C.S.A.H. #17, Underpass
9,763.69
TOTAL DISBURSEMENTS
$ 46,046.00
i BALANCE 12 -31 -80
$ 5,844.88
l
r
. - NUND S1A US XEPUR'1'
HRA OPERATING BUDGET
1981 DOWNTOWN TAX
INCREMENT -FUND #460
(Period Ending
October 31, 1981)
BALANCE 12/31/80
$ 5,844.88
RECEIPTS
Sale of Documents
30.00
Interest Charged /Earned
945.11
Levy
84,126.52
State of Minnesota
6,262.04
— Metropolitan Council
3,280.00
Building Rental
1,522.50
Refunds
45.25
— TOTAL RECEIPTS
$ 96,211.42
DISBURSEMENTS
LABOR
4010 Scott Martin
8,331.48
4010 Nancy Herfert
8,453.25
4030 PERA & FICA
2,039.37
4040 Insurance
1,054.01
4050 Workman's Comp.
146.65
SUPPLIES
4110 Office
142.06
4150 Maint. Materials
87,22
FEES, CONSULTING
4301 Larson & Mertz
9,480.74
4301 B.R.W.
9,575.01
f 4301 Coordinated Management
385.73
4301 VonKlug & Associates
699.50
4301 Russell Smith
400.00
4301 Holmes & Graves
380.00
4301 Schoell & Madson
1,198.35
FEES, SERVICE
4300 Carver County Abstract
267.50
4300 Medical Examination
18.00
REPAIR & MAINTENANCE EQUIPMENT
4530 Repair & Maintenance Equipment
308.00
PUBLICATIONS
4340 Carver County Herald
44.86
r 4340 Minneapolis Star
171.18
4340 Artcraft Press
21.75
TRAVEL & TRAINING
4370 Travel & Training
116.50
UTILITIES
4310 Telephone
Office
82.53
Library
252.52
_ 4320 Utilities
Office
116.83
Library
492.60
LAND PURCHASE AND IMPROVEMENTS
4701 Mike Sorenson 25,000.00
OFFICE EQUIPMENT
4703 Office Equipment 2,094.63
BUILDINGS AND STRUCTURES
4702 Repairs, Old Village Hall 4,036.00
Transfer to General Fund as per Budget 7,500.00
TOTAL DISBURSEMENTS
$ 82,896.27
BALANCE 10/31/81 $ 19,160.03
HRA FUND STATUS REPORT AS OF
DECEMBER 31,
1980
DOWNTOWN REDEVELOPMENT PROJECT - RING ROAD PUBLIC
IMPROVEMENT
Fund #604
r-
RECEIPTS 1980
r
Interest Earned /Charged
246.33
TOTAL RECEIPTS
(246.33)
7-
DISBURSEMENTS 1980
Printing & Publishing
Carver County Herald
85,92
i
LEGAL & FISCAL
Larson & Mertz_
15,390.08
Lefevere Lefler
412.50
CONSULTING
B.R.W.
65,368.50
_
Von Klug ( Appriaser)
19,699.61
LaSalle Ruppert (Appraiser)
20,125.00
Russll Smith (Appraiser)
7,400.00
^
Patchin (Appraiser)
16,401.50
MISCELLANEOUS
Co -od Mgmt (Time Sharing)
1,586.16
TOTAL DISBURSEMENTS
1980
146,469.27
I
^
BALANCE DECEMBER 31,
1980
(146,715.60)
HRA FUND STATUS REPORT AS OF DECEMBER 14, 1981
DOWNTOWN REDEVELOPMENT PROJECT - RING
ROAD PUBLIC IMPROVEMENT
Fund ,#604
RECEIPTS
Net Bond Proceeds*
$ 4,692,355.83
Interest earned /charged **
41,291.04
TOTAL RECEIPTS
$ 4,733,646.87
DISKRSEMENTS
PRINTING & PUBLISHING
Carver County Herald
141.32
Financial Communications
63.85
Poucher Printing
868.20
' LEGAL & FISCAL
Larson & Mertz
39,859.88
Lefevere, Lefler
4,992.10
Juran & Moody
17 912.50
Moody's
1,500.00
CONSULTING
B.R.W.
111,409.64
VonKlug
20,744.71
Coordinated Management
3,652.50
LaSalle Ruppert
20,125.00
Russell Smith
8,400.00
Patchin Appraisals
16,701.50
Carver County Abstract
42.75
Kohlrusch Abstract
10,592.50
r
LAND ACOUISITION
Instant Web
3,482,673.00
John & Loretta Havlik
23,510.50
MISCELLANEOUS
Long, Froehling
294.00
TOTAL DISBURSEMENTS
$ 3,763,483.95
BALANCE
$
970,162.92
*Net Bond Proceeds Includes Principal Amount of
$4,715,000 plus accrued interest
of 60,450.01, less bond discount of $83,094.18.
* *Does not include interest earned for November
and December 1981.
HRA General Obligation Tax Increment Bonds of 1981, Series A
Fund #604 - Expenditure Budget
Approved: August 13, 1981
Fund Status as of December 14, 1981
Total
$4,625,000 $3,763,483.80 81.37% $861,516.05
*Capitalized Interest and accrued interest is credited to a separate Debt Service
Fund and may only be used to pay interest due on the Bonds. The first interest
payment is due in August, 1982.
Budgeted
Percent
Application of Bond Proceeds
Expenditures
Amount -to -date
to -date
Balance
Acquisition and Relocation
$3,500,000
$3,482,673.00
99.50%
$ 17,327.00
of Instant Web, Inc.
Capitalized Interest*
600,000
-0-
0%
600,000.00
Option and Acquistion Costs
300,000
23,510.50
7.84%
276,489.50
for Riviera, Havlik,
Huber and Other Properties
Consulting Services
200,000
231,822.48
115.91%
(31,822.48)
Issuance Expenses
25,000
25,477.97
101.91%
(477.97)
Total
$4,625,000 $3,763,483.80 81.37% $861,516.05
*Capitalized Interest and accrued interest is credited to a separate Debt Service
Fund and may only be used to pay interest due on the Bonds. The first interest
payment is due in August, 1982.
RUSSELL H. LARSON
CRAIG M. MERTZ
OF COUNSEL
HARVEY E. SKAAR
MARK C. MCCULLOUGH
Scott A. Martin
Executive Director
Chanhassen HRA
Box 147
Chanhassen MN 55317
I
Dear Scott:
LARSON & MERTZ
ATTORNEYS AT LAW
1900 FIRST BANK PLACE WEST
MINNEAPOLIS, MINNESOTA 55402
December 17, 1981
TELEPHONE
(612) 333 -1511
Re: HRA Accounting Requirements
We have received your letter dated December 7, 1981 requesting an
opinion concerning the handling of HRA money.
For the first six years of the HRA's existence, the HRA had no money,
other than money advanced to the BRA by the City Council from the
City's budget. These monies were deposited in the City's checkbook.
The HRA's creditors were then paid by City checks which were issued
upon approval of the City Council.
Now the situation has changed. The HRA has an independent source of
revenue, namely the tax increments. These tax increments have beep
deposited in the City's bank account, but in a fund (or subaccount)
which is in the BRA'S name.
The HRA is a separate governmental entity. It alone is authorized
to expend its money, which would include tax increments, proceeds
from land sales, and revenue from HRA -owned enterprises. The State
Imo, Auditor's Office, which has the audit responsibility for HRAs, requires
that HRAs keep books and records in the same manner as City books and
records are kept.
i
r
Ideally the HRA should keep its own accounting system, separate and
distinct from the City's system. The present arrangement was proper
in the years before the first tax increment was received. If the
BRA wishes to continue to utilize the City accounting system, the BRA
i and the City Council should sign a joint powers agreement authorizing
the City Treasurer to handle the HRA's money.
r✓
I I
1
i
Scott A. Martin
December 17, 1981
Page Two
Regardless of whether the HRA decides to continue to utilize the
City accounting system or establish a separate accounting system,
it is the HRA's board, not the City Council, which must authorize
expenditure of funds in general and the issuance of specific checks
in particular. Technically the City Council has no authority to order
the expenditure of tax increment funds.
If the HRA wishes to regularize past expenditures it should ask the
City Treasurer to make a list of past disbursements showing the dates,
check numbers, amounts, and names of payees. The HRA should then
meet as a board and after examining the Treasurer's list, pass a
resolution confirming the past expenditures.
If the HRA does decide to establish a separate accounting system,
the HRA checks would be signed by the member of the board who is
Secretary- Treasurer and also by the Executive Director.
If you have any questions, pelase call.
Very truly yours,
CRAIG M. MERTZ
Assistant Chanhassen City Attorney
CMM:ner
P. S. The City Treasurer's list of checks can be limited to dis-
bursements made since the first tax increment was received. /CMM
I
r
r
/�
r RUSSELL H. LARSON
Ill CRAIG M. MERT2
OF COUNSEL
r 'HARVEY E. SKAAR
MARK C. MCCULLOUGH
r Lyle H. Nagell
7515 Wayzata Blvd
Minneapolis MN 55426
Dear Mr. Nagell:
LARsow & MERTZ
ATTORNEYS AT LAW
X900 FIRST RANK PLACE WEST
MINNEAPOLIS, MINNESOTA 55402
December 8, 1981
Re: Chanhassen HRA
Parcel 26
TELEPHONE
(612) 333 -.Sn
As attorneys for the Chanhassen Housing and Redevelopment Authority
we request that you furnish this office with your appraisal, in
i three copies, of a vacant parcel of land, the legal description of
which is as follows:
The South 295 feet of the East 433 feet
of the Southwest Quarter of the
Southwest Quarter of Section 12,
Township 116, Range 23, Carver
County, Minnesota.
The premises are shown on the attached unmarked half section maps,
l (2), and also on the colored map. Please note that the legal
l description includes 75 feet of County Road No. 16 right of way,
and at least 33 feet of Laredo Drive right of way. We take the
f position that because of the street rights of way, the parcel can
I yield only 88,000 square feet for development purposes, as is shown
on the colored map attached.
7 For your information, the property is owned in fee by the Estate
of John P. Brose, subject to a contract for deed with J & P Company,
a partnership consisting of John T.and Patricia M. Huber, vendee.
A street assessment in the amount of $127.63 remains unpaid. There
are no pending assessments now of record.
Your early attention to this assignment will be appreciated. Please
call if we can be of further assistance.
RHL:ner
enc
cc: Scott A. Martin
HRA Executive Director
Very truly yours,
RUSSELL H. LARSON
Chanhassen City Attopr[e�yjF p.. i4m,N''!A3SEN
Litc 0 91981
# SENT DEPT.
r
Chanhassen City Council
c/o Donald W. Ashworth
December 7, 1981
Page Three
r
1NAU
Baltic
11/9 draft stipulation of dismissal as to Transamerica, draft
release as to Transamerica, corres to Walker of Transamerica, copy
7 to Transamerica attorney; 11/19 forward executed release to
Transamerica w /explanatory letter, corres to Transamerica attorney;
visit to clerk of court's office concerning notice of conference w/
Judge; 11/24 forward $4700 settlement payment to DWA, file stipulation
of dismissal as to Transamerica w /clerk of court; 11/25 corres to
assignment clerk re cancellation of pre -trial conf: /
$ 270.609L
Housing and Redevelo me
r Havilk Acquisition (Parcel # 3U ): 11/16 conf w /John Havlik re
acquisition option; 11/17 draft revised option agreement to include
option extensions, rental, right of first refusal, etc., provisions;
_ 11/24 revise Havilk option per conf w /SAM; prepare Exhibits A and 3O
561.00
B, proofread revisions: 8.5 hours: 'O4-�
Riviera Acquisition (Parcel # 91 ): 11/24 furnish draft of option
agreement to Tom Krueger of Riviera and conf re explanation of
same: 1.5 hours: 99.00 ,
bC- +)
Huber Ac uisition (Parcel # 2G ): 11/19 draft purchase agreement;
11 21 conf w John Huber re acquisition; review file in preparation
for conference: 2.5 hours:
165.0 4-k�n
i
r
r
i
r
Business Park Development Incentive Program: 11/3 telcon w /Dave
Kennedy re use of tax increment to reduce assessments in Chan Lakes
Business Park; 11 /10 prep for meeting w /Kennedy on 7% abatement
program for CLBP assessments and meet w /Kennedy to work out details
of the program; 11/12 meet w /SAM and DWA re assessment incentives
program for CLBP; 11/24 review file and start drafting documents for
7% assessment write -down program; 11/25 work on documents to carry
out assessment reduction program; 11/28 draft documents for 7%
assessment reduction program; 11/30 review agenda packette in prep
for HRA meeting on 12/3/81: 9.8 hours:
646.80
HRA General Legal: 11/12 review block grant cooperation agreement;
telcon w Co. Attorney re same and transmit to SAM; 11/16 telcon w /SAM
and dictate two.resolutions clarifying date on which developer's
rights expire and transmit to SAM: 1.6 hours: �1
105.60
r
INVOICE
MINNEAPOLIS CHEYENNE DENVER
I
I
City of Chanhassen
DATE: October 31, 1981
r
7610 Laredo Drive
Chanhassen, MN 55317
JOB NO: 6 -8110, 62 -8109
ATTN: Mr. Scott Martin
62 -8119, 62 -8020
RE: Engineering /Planning /Surveying
Services for
Downtown Redevelopment Project
as per Agreement
I
Per Diem Services - Phase I
Work Task
1.7
Period of October, 1981
r
Coordination and project review
with
utilities companies, MN /DOT and County
Highway Engineer. Provides
assistance
to title
insurance services for land
acquisition process, begin
analysis
of 79th Street relocation and work on EAW.
Classification
Hours
Principal
4.50
Sr. Associate
2.00
Associate
17.00
i
Sr. Professional
1.00
I
Technician
6.50
s
�—
Salary Cost - $660.98
Fee - $660.98 x 2.0 =
$1,321.96
TOTAL AMOUNT DUE
$1,321.96
1U"
^'
4'?j�
CISY OF CHANHIASSEN
`NOV 161ggt .�:.n
�� ^R1U'ITY DEVELOri�iEN "I
BATHER, RINGROSE, WOLSFELD. JARVIS. GARDNER, INC.
2829 UNIVERSITY AVE. 5 .E.
MINNEAPOLIS, MN 55414 PHONE 612 1 379 7878
F
F INVOICE
MINNEAPOLIS CHEYENNE DENVER
Mr* Scott Martin October 31, 1981
Community Development Director
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
JOB NO: 40-8111
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Invoice Period: October 1 - October 31, 1981
For professional services rendered on the traffic analysis of TH 5 and County
Road 17.
Classification Hours
Professional 11 17.00
Salary Cost = $344.19 i
2.0 x $344.19 =
TOTAL AMOUNT DUE $ 688.38
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tia, Jid M. Warner, P.E.
Project Manager
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NOV 16 1981
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CITY OF CHANHq--
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BATHER, RINGROSE, WOLSFELD, JARVIS, GARDNER, INC. . 2829 UNIVERSITY AVE. S.E. MINNEAPOLIS, MN 55610 PHONE 6121 379 -7878
MINNEAPOLIS CHEYENNE DENVER
Mr. Scott Martin
Community Development Director
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
INVOICE
S a
DATE: November 30, 1981
JOB NO: 40 -8111
Invoice Period: November 1 - November 30, 1981
For professional services rendered on the traffic analysis of TH 5 and County
Road 17.
Classification Hours
Professional II 7.00
Salary Cost = $141.72
2.0 x $141.72 = $ 283.44
David M. Warner, P.E.
Project Manager
GE% 0 1981
.� BATHER, RINGROSE. WOLSFELD, JARVIS. GARDNER, INC. 2829 UNIVERSITY AVE. S.E. MINNEAPOLIS, MN 55414 PHONE 612 1 379]8]8
COORDINATED MANAGEMENT SYSTEMS, INC.
8401 WAYZATA BLVD. SUITE 300
MINNEAPOLIS, MINNESOTA 55426
CITY OF C ; A «r» S S i
P . I] G,( !«
1'4VGTC S9S g3
DAT.:: DECS 1-1 iqo-1
US&E 92\\23 C 19g
NET ." 04Y_Q
me STANDARP PATES'
S T,'J P I i, F
INFACT STPRAu--1 6.00
PRIME ma 1. ?. v
FliowQ11"_ CON't" 19.
PRI"n CPU . I I , Rs
tj u 11 - i I _., I:, _� c p T1,
ST9D_',rD Tj>,,S' 91'jr
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P 1� 13, 1 _7f f S T U R A G T� - TOTAL
U �RII!l � f; 1-1 i. - p R. I %IE �N ON
---- ------- ------- ----- ------ ------ -----
300 CHAN KDD
88 (1 16.43
300 Cil!Nii.ASS
167 25. 12
3 1 31 161 0 19.06
J0 0 S T u P A C I so 48.00
TOT AL 3 0 1'; 80 1 . -116 f) 108.61
100 STUT)ACE 120 54.36
TOL'AL ST »gkB 2 CC 0 s! 1 cl 416 0 162.97
TOTAL DUE 16597
A 1-1/73 PEP 7,Tfi CARS IOG CEARGE '.-,ILL AUTO%! ATICALLY
BE ADUFEO TO ACCXJuTS R.,.C7IVAljr7 OVER 30 DAYS OLD.
P I I- -
L WE APPPECCATE YOUR CGCFERATy';.
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DEC o:
rITY Oz-
LAW OFFICES
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LEFEVERE. LEFLER, PEARSON, O'BRIEN 6 DR);
1100 FIRST NATIONAL BANK BUILDING
MINNEAPOLIS. MINNESOTA SS402
September 15, 1981
Mr. Donald W. Ashworth
City Manager
City of Chanhassen
7610 Laredo Drive
Chanhassen, Minnesota 55317
l
FOR PROFESSIONAL SERVICES RENDERED
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For all legal services rendered in connection with the
issuance and sale of $4,715,000 General Obligation Tax
Increment Bonds of 1981, Series A, including preparation
and examination of proceedings, and the issuance of
approving opinion thereon.
$4,500.00
Disbursements:
$79.60 Reproduction 79.60
AMOU14T DUE:
$4,57H.60 �� ,;
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4711
(A Division of Hughes Associates, Inc.)
287 WATER STREET
EXCELSIOR, MINNESOTA 55331
;OMPANY PHONE (612) 474 -8896
DATE
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