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HRA 1983 05 19
V J-Q- AGENDA — REGULAR MEETING CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY THURSDAY, MAY 19, 1983 Chanhassen City Hall, 690 Coulter Drive City Council Chambers 7:30 p.m. 7:30 p.m. 1. Call to order 2. Approve minutes of March 24, 1983 meeting. 3. Review and discuss Tax Increment Financing Plan prepared by City's Accountants /Status Report on efforts to Refinance and Restructure the 1981 Tax Increment Bonds. - 4. Authorize extension of Downtown Project Purchase Option Agreements: a) Chanhassen Tire and Auto (Havlik property) b) Riviera Supper Club (Krueger property) 5. Resolution #83 -3 Approving Assessment Agreement for Energy Controls, Inc. Project, 1401 Park Road. 6. Approval of Bills. 7. Old Business: a) Review Housing Survey Results. b) Insurance Settlement for Instant Web Building Damage. 8. New Business. 9:30 p.m. 9. Adjournment. F Minutes Chanhassen Housing and Redevelopment Authority Regular Meeting March 24, 1983 Call To Order Chairman Gullickson called the meeting to order at 7:30 p.m. Present were Commissioners Horn, Bohn, and Gullickson. Absent was Whitehill. Also present was Mayor Hamilton, Councilpersons Watson and Geving; Ashworth and Martin. Russell arrived at 7:50 p.m. Approval of Minutes Horn moved, seconded by Bohn, to approve the minutes of the February 17, 1983 meeting, as presented. All voted in favor and the motion carried. Presentation of Supermarket Pro Formas by Retail Systems, Inc Don Klemp of Retail Systems, Inc, presented several revised pro formas and sales projections for a new downtown Chanhassen Supermarket. He concluded that a supermarket could be profitable if the City provided the operator with a substantial subsidy to reduce start -up costs and operating costs during the first several years of operation. He agreed to meet with any prospec- tive firms interested in Chanhassen to review the study with them. No action was taken on this item. resentation of Feasibility Study for Adaptive Reuse of nstant Web Buildina: BRW,Inc. Mark Swenson of BRW, Inc. presented the Instant Web adaptive reuse study recently completed by his firm. Discussion centered around the existing and potential future reuse of the building, which special emphasis on conversion to recreational /community center uses. Mayor Hamilton distributed a memorandum to the HRA which con- ' tained specific recommendations concerning the future role of the Downtown Project Steering Committee. No action was taken on this item. Status Report on Downtown Project Financing Martin reported that a sale date of April 26, 1983 has been set for the sale of bonds to refinance and restructure the Bonds of 1981. am RITM Chanhassen Horn moved, seconded by Bohn, to approve Resolution #83 -2 Approving the Assessment Agreement for Chanhassen Lakes Business Center. All voted in favor and the motion carried. Minutes March 24, 1983 Page 2 Approval of Bills Bohn moved, seconded by Horn, to approve the bills for March, 1983, as presented. All voted in favor and the motion carried. New Business The regular April meeting was postpoJ d until May 5, 1983 so that the outcome of the proposed Bond Sal; would be available. Adjournment Horn moved, seconded by Bohn to adjourn the meeting at 9:45 p.m. All voted in favor and the motion carried. 3 CHAN . HASSEN HOUSING 8a REDEVELOPMENT AUTHORITY 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN. MINNESOTA 55317 (672) 937 -7900 MEMORANDUM TO: 'Chanhassen Housing and RedevE J ipment Authority'' FROM: Scott A. Martin, Executive Di_2ector DATE: May 13, 1983 SUBJ: Tax Increment Financing Plan prepared by DeLaHunt Voto & Co. and Status of efforts to Refinance /Restructure 1981 Tax Increment Bonds. As of this writing, attempts to sell new bonds which would refinance the bonds of 1981 and restructure debt service payments have been unsuccessful. Juran and Moody is continuing their efforts to negotiate a sale of these bonds, but endless problems seem to surface just when a sale appears imminent. Rather than to attempt here to go into the specifics of what has transpired during the past 6 - 8 weeks, Don and I will review this matter with you in detail at your May 19th meeting. We would also like to review with you in greater detail the ".Tax Increment Financing Plan" and related documents recently 'prepared by DeLaHunt Voto & Co. These reports were distrubuted to both the City Council and HRA for presentation at the special joint meeting held on March 15, 1983. A copy of Don's memorandum to the City Council concerning these reports (dated 3/15/83) is attached for your reference. Please bring your copies of these reports with' you to next week's meeting, as only a few extra copies are available. If you can - " not locate your copy, please contact Vicki at City Hall by Wednesday afternoon so that a copy can be provided to you at the meeting for your reference..; SAM:v V I CITY OF 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 MEMORANDUM TO: Mayor and City Council FROM: City Manager, Don Ashworth DATE: March 15, 1983 SUBJ: Special Council Meeting - Special Financial Reports Tuesday evening's special council meeting has been solely dedi- cated to a review of the attached financial reports. These reports represent approximately 6 months of efforts by City consultants /staff. They additionally represent the most compre- hensive financial review ever conducted by this city or possibly any city within the state. The objective of each report is different, but each is interre- lated in that they form a basis of 1) consolidating all commit- ments of the city; 2) establishing a means by which the city can continue monitoring our debt structure /commitments; and 3) to provide a basis upon which current and future decisions can be made. The following summarizes the attached reports: TEMPORARY BONDS OF 1980 The cit ust permanently finance the temporary bonds of 1980 which ture June 1, 1983. The amount required �e permanently fi ced is,approximately $1.3 mill' The tem- porary bonds of 1 were, in actuality, th ird set of temporary bonds sold finance overlap g construction pro- jects during 1978, 1979 d 1980. ibit 5 reflects that overlapping and reflects th ass sments which were pledged,' in 1982, to cover the perman en inancing for the temporary bonds of 1978 and 1979, i $4.5 llion in assessments /other rev es pledged fo epayment of those earlier temporary nds. An additional 0,000 in assessments re ns for repayment of the cu nt proposed $1.3 millio and issue. The difference ($700, 0) was pro- posed t e financed through additional sewer asses ents plac within the business park, but not committed to s b d issue ($255,000) and tax increment participation for projects such as Coulter Drive, special assessments against Mayor and Council -2- March 15, 1983 I � city owned land (city garage) and the well house construct' of including amenities) - totalling approximately $60 00. Als available are excess monies in the MSA account alling appro ately $300,000 (dedication of MSA monies ld negate MSA part ipation in projects such as Bluff Cre Drive, CPT frontage r d, Lake Lucy Road, etr.., and, as ch, is not being recomme ded). The emphasis of t 's report is tr pl e the necessity to com- mit one or more of e above not.: lternate revenue sources as pledged assets for he perma nt bond sale. If the city council does not m 'e th' commitment, general obliga- tion tax levies will be r fired. Do not take this comment out of context. The fac re ins that every well house pre- viously constructed in his ci and statewide are typically paid through additi al charges a inst the utility customers. Similarly, every lic improvement as had some form of spe- cific benefit t the city (street /sewe water benefits for the fire stat' n on Laredo, street benefi on Erie and West 76th Street sewer benefits from the Erie s er project, etc.) Al of these costs were paid (unless la r cancelled) through cheduled tax levies. As such, the $600, 00, curre ly being scheduled as an HRA expense, could paid in tot or in part by general property tax levies. This is a c ncil decision, but one of the two alternatives must be The city /HRA's ability to pay these costs, through tax increment revenues, is the subject of the next report. TAX INCREMENTING FINANCING PLAN The primary purpose of preparing this report was to - 1) re- examine the revenue sources within the tax increment district; 2) to consolidate all of the commitments of the HRA (general administration, special assessment reduction program, tax increment bond payments, and general obligation commitments (wellhouse, Coulter, etc.) into one report; and, finally, 3) to establish the financial controls under which all obligations of the Housing and Redevelopment Authority could be continuously updated and through which current and future decisions could be made. *A short -term deficit (1983 -87) does exist within the tax increment district and such could be a long term problem if tax collec- tion rates do not occur as anticipated. The primary reasons for this include: 1). Revenues during the 1983 -87 timeframe are less than projected. A new state law provides tax relief for a building such as the new Instant Web building where full taxation occurs incrementally over a four year period or until occupancy occurs. The Mayor and Council -3- March 15, 1983 allowance for this type of reduced tax position was not previously anticipated and, by itself, totally generates the short -term problem; and 2). The special assessment reduction program is benefi- cial to the city in the long term. However, the obligation to pay special assessments assessed against properties for which new construction is proposed causes a short -term deficit until the new construction begins paying taxes. Once taxes start, the total costs incurred by the HRA /city are recouped within a one to two year period. However, again, the short -term problem is compounded by these commitments; and 3). Administration costs are higher than originally anticipated. The revised administrative costs reflect the operating expenses (insurance, building repairs, heat /light, etc.) associated with the old Instant Web building. The costs of these admi- nistrative costs are increased by a 5% factor over the 20 year period and, in total, represent a cost factor in excess of $1 million solely for operating the old Instant Web building. This is not a realistic projection as both the council and HRA have placed an emphasis of disposing of this building; but, until such is disposed of, the costs must be accounted for; and 4). Similar to previous runs, a "no growth" assumption is built into the revenue picture. This is not a realistic assumption, but does maintain the ultra- conservative policies of the HRA /city in reviewing overall financial pictures of the HRA; and 5). Costs associated with paying the costs of Coulter Drive street improvements, wellhouse, public works improvements is included in the overall expense picture. As noted at the beginning of this section, it is the belief of this office that the primary purpose of this report was to consolidate all of the commitments of the HRA into one docu- ment, to provide a means by which these commitments /revenues could be continuously monitored and updated; and, finally, to reflect our current position - such being that action must be taken by the city to insure that a deficit does not occur within the tax increment district. Means by which the city can change the financial picture of the tax increment district is included in the fourth report - Recommendations, DeLaHunt Voto and Company. Mayor and Council -5- March 15, 1983 2). Bonds of 1972/73: This bond issue has been of significant concern to the city ever since its inception. As of six years ago, the fund had a projected deficit balance in excess of $2.4 mi ion t maturity. A previous refunding and potential r assessments appeared to provide a means b which th deficit could be s 'gnificantly reduce , if not elim'nated. The refina, icing did occur which pro- vided n approximate $'A,000 benefit t the city. Althoug assessments s:heduled to be r viewed would have exc ded the remaining projecte deficit, it was discov red that the engineers h d recommended assessing v ious properties whic did not truly have a benefi i.e. a house existed on the pro - perty in such a way that a seco d lot could not be created, terrain or soil cond' ions existed negating the posse ility of additional lot, etc. By deletion of thes propos d assessments, approxi- mately $200,000 in a ess nts were deleted from what the engineer had r'ginally recommended to the city. These assessment when future interest is added to such, repres t an approximate $400,000 future deficit posit' n. owever, the assessments as placed by the ci y counc were challenged by 13 property owners ( ter to be 4 with Fisher). By the city losing a court case with these 13 owners, the tot deficit has n w jumped to a $900,000 proje ted deficit at ma rity. This is a s' nificant deficit which ust be /Year cted ithin a short period (matu 'ty of these wil be within a 6 year period). I was y ncerned that all alternatives h been r i.e. additional assessments, ple ing revenues, etc. and had anticipated tha the would have no other option but to start ng $150,000 per year to insure that this fi- id not occur. Although there are some disa - ges with refinancing this debt, I consider i the only alternative now open to the city r than the significant tax levies for the next r period. This recommendation is shown as a pof Report No. 4 - Summary Recommendations, DeLaHunt Voto. SUMMARY RECOMMENDATIONS - DELAHUNT VOTO: This report is relatively short and summarizes the first three reports. Should council members not have sufficient time for an indepth review of the previous reports, the coun- cil can get an overview picture by simply reading Report No. 4. Such is strongly recommended. Mayor and Council -6- March 15, 1983 PROPOSED BOND SALE INFORMATION - JURAN AND MOODY: You may wish to puruse the information included in this sec- tion. However, Bob Sander and Andy Merry will be present to walk through these enclosures and to answer city council questions. SUMMATION Reports presented to the council represent in excess of 500 staff /consultive hours. There were at least 50 different options which were explored, but not presented. Chanhassen was one of the last cities to successfully carry out a suc- cessful refunding issue in 1978 prior to such being prohi- bited by the IRS. With council approval, Chanhassen will be one of the first cities to again carry out a refunding given a change in IRS rules. I am sure that consultive fees will be significant; however, the results being achieved are tre- mendous. Although the results being presented do not appear consolidated, they really are. Important details, such as the funding of the escrow, options which considered time /cost trade offs, etc. are not being shown simply to reduce the amount of confusion. I am proud to have helped in preparing these documents and can honestly state that our consultants rose to the challenges presented sharing tremendous dedica- tion, commitment and imagination. In summation, this office would recommend: 1). Approve the issuance of approximately $1.3 million in special assessment bonds of 1983. Such appro- val should commit the sewer and water assessments, included in the business park project, as a dedi- cated revenue for this bond issue. Additionallv. Dr (excl 2) All hnrioc the e of refinance tax inrram ant hnnAs of 1983 to advance refund the $4.7 million tax sures cos shown in the bond issue above. The recommendation rinancial models are kept _CU_ , 3). A ze the sale of refinanced special assessor bonds of advance refun n s of 1972/73 and specie ents bonds of 1982 - This recommend will ass at general prop- erty to ies associated with the nd e can be cancelled and will provide a mean Mayor and Council -7 March 15, 1983 "ch costs associated with the 1972/73 b ssue can aid, over a reasonable time e; and 4). Authorize the le of $31 0 in tax increment bonds of 1983 to e financing for the drainage project in Econo 'De opment District #2 - This recommendat' is base(. on ews by BRW and Juran and Moo assuring tha' all costs 1 be paid thro this district And assures that sts wkT1 be paid by genera-i property taxes; and 5). Determine the feasiblity of iss on in the UvwuUF11 atF - H 1CUU11W1C13UaU. U11 lb' 11UG DC111g pLe- seated by this office on this item. Solely looking at the analysis prepared by DeLaHunt Voto would lead to the conclusion that such bonds could not be sold. However, again, this analysis was based on specific revenues /expenditure assumptions. If the council is willing to change these assumptions (including whatever commitment is necessary in doing such), the financial feasibility of selling the $1 million additional issue will change. This then becomes a trade off for the city council to determine the importance of carrying out the Huber/ Riviera /Mobil aquisition in terms of overall com- mitment to the project versus our ability to change the assumptions. For example, a change in any of the following assumptions would allow for the sale of the additional bonds, i.e. 'C - A commitment by the HRA /city to dispose of the Instant Web building within the next year would provide sufficient monies for the new - bond sale; or C - To commit to a general property tax levy of — approximately 1 mill to either reduce existing debt (payments for Coulter /wellhouse /etc.), or to similarly make such levy to reduce HRA _ administration expense. Regardless of which purpose the general obligation levy was designated for, such would provide sufficient monies for the current sale; or r- - Change the revenue assumptions by reflecting some minor growth to occur within the tax increment district and additionally provide a minor loan to the HRA for the 1984/86 timeframe. ' CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY 690 COULTER DRIVE - P.O. BOX 147 • CHANHASSEN. MINNESOTA 55317 (612) 937 -1900 MEMORANDUM TO: Chanhassen Housing and Redevelopment Authority FROM: Scott A. Martin, Executive Director DATE: May 12, 1983' -: SUBJ: Purchase Option Agreements for Chanhassen Tire and Auto and Riviera Supper Club Properties. The current options for the acquisition of the above properties expire on June 1, 1983. Extension of the Riviera option to September 1, 1983 will require,,,,," a payment of $5,000, and a like extension of the Havlik option ;;y* requires a $500 payment. The final option extension period for both properties expires on September 1, 1983 (see attached correspondence from Russell Larson). 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 Dear Scott: LARSON & MERTZ ATTORNEYS AT LAW 1900 FIRST BANK PLACE WEST MINNEAPOLIS, MINNESOTA 55402 May 3, 1983 TELEPHONE (612) 333 -1511 Re: Riviera (Krueger) & Havlik Options I'm sure you are aware that the current options for the acquisition of the above properties expire at midnight on Wednesday, June 1, 1983. Extension of the Riviera option to and including September 1, 1983, will require a payment of $5,000.00 to Tom and Lou Krueger on or before June 1, 1983. In the case of the Havlik option, the payment required for a like extension is $500.00 on or before June 1, 1983. As you know, the final option extension period in both instances expires September 1, 1983, by which date the HRA, if it intends to acquire either of these properties, must give written notice of such intention to the property owners. Thereafter, the title marketability provisions of Section 9 and the closing date provisions of Section 10 of the agreements become operable. VLVery tru ou , RUSSELL H. LARSON RHL:ner CITY OF CHANHASSEN p;�-C,FEVED mAY 041983 r11�,jM1iN1TY DEVELOPMENT DEFT 5 ® CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY Iml 690 COULTER DRIVE P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 MEMORANDUM TO: Chanhassen Housing and Redevelopment Authority'• FROM: Scott A. Martin, Executive Dit•!tor( DATE: May 12, 1983 }; SUBJ: Special Assessment Reduction Program Agreement for Energy Controls, Inc. Project (Lloyd and Barbara Miller, Developers) Attached for your review and approval is the proposed Assessment Agreement for the "Energy Controls, Inc." project which is currently under construction on Lot 6, Block 5 of the Business Park (see attached location map). This project consists of a single -story 10,000 square foot office /warehouse /manufacturing building. Completion of the project is anticipated by March 15, 1984. A copy of the building plans will be available for your review at the May 19th meeting. The County Assessor has established a total minimum market value of $343,700 for this project. The vacant land value is presently set at $33,700. The HRA's special assessment reduction obliga- tion for this project is calculated in the following manner: $343,700 - $33,700 = $310,000 x 7% _ $21,700 The total current outstanding special assessments on this site is $33,711.50. These assessments are currently scheduled for repayment over the next 13 years of a 13% interest rate. Advance prepayment of the HRA's share of the outstanding specials in one lump sum is not feasible at this time according to the City's accountants. Recommendation - Adoption of Resolution #83 -3 approving the Assessment Agreement and authorizing its execution by the Chairman and Executive Director is recommended. Attachments 1. Resolution #83 -3. 2. Project Location Map. 3. Letter from Lloyd Miller, President of Energy Controls, Inc., , dated March 30, 1983. -' 4. Copy of Assessment Agreement. HOUSING AND REDEVELOPMENT AUTHORITY OF CHANHASSEN, MINNESOTA RESOLUTION DATE: May 19, 1983 RESOLUTION NO MOTION BY: SECONDED BY: 83 -3 RESOLUTION APPROVING ASSESSME1 AGREEMENT FOR ENERGY CONTROLS, INC PROJECT Avp *F_Ivnvi WHEREAS, Lloyd W. Miller and ,arbara J. Miller (the "Redeveloper), owner of the following described real property: Lot 6, Block 5, CHANHASSEN LAKES BUSINESS PARK, Carver County, Minnesota, have tendered to this Authority a proposed assessment agreement, pursuant to Modification No. 5 to the Chanhassen Downtown Redevelopment Plan, providing for the construction of certain improvements within the Chanhassen Downtown Redevelopment Project Area. NOW, THEREFORE, BE IT RESOLVED, as follows: 1. The proposed Assessment Agreement is hereby approved as con- sistent with the Authority's Special Assessment Reduction Program. 2. The Chairman and Executive Director of the Authority are hereby directed and authorized to execute on behalf of the Authority said assessment agreement in the form attached hereto and made a part hereof, as Exhibit A. 3. The Chairman and Executive Director are hereby specifically authorized to make assessment reduction payments pursuant to said assessment agreement on the basis of the Minimum Market Value set forth in Section 3.3, and as computed in Section 3.2 of said agreement. ' 4. The amount of the assessment reduction payment under said assessment agreement is hereby determined to be $21,700.00,which amount is based upon the Authority's determination that outstanding levied eligible assessments total $33,711.50. Passed and adopted this 19th day of May , 1983, by the Housing and Redevelopment Authority of the City of Chanhassen, Minnesota. ATTEST: Executive Director Yes: No: Absent: Chairman o �kDARLT LjXATTON MAP* .✓.e -,� ei.aa J s.e ,. =av✓ef va. sm of sut r/,4.,u. 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ENERGY CONTROLS, 11L. kkWWtW#3 1455 PARK ROAD -� CHANHASSEN, MINNESOTA 55317 PHONE (612) 474 -0296 HEATING & COOLING EQUIPMENT MAINTENANCE AND ENERGY MANAGEMENT SYSTEMS March 30, 1983 Mr. Scott A. Martin Chanhassen HRA 680 Coulter Drive P0 Box 147 Chanhassen, MN 55317 RE: Application for participation in the Chanhassen HRA special assessment reduction program Dear Mr. Martin: Enclosed is a set of building plans for Energy Controls, Inc. to be constructed on Lot 6, Block 5, of Chanhassen Lakes Business Park which will be occupied solely by Energy Controls, Inc. I401 QRK K0AD/1Ax PAk-f- G,42+$-%10- 02.00 The estimated contruction start is May 1, 1983 and completion of March 15, 1984. The estimated project value is $310,000.00. Aie er sl P CITY OF CHANHASSEN RECEIVED MAR 3 01983 COMMUNITY DEVELOPMENT D& ASSESSMENT AGREEMENT CHANHASSEN HRA SPECIAL ASSESSMENT REDUCTION PROGRAM THIS AGREEMENT, made on or as of the 1st day of May , 1983, by and between The Housing and Redevelopment Authority in and for the City of Chanhassen, a public body corporate and politic (The "Agency "), established pursuant to Laws of Minnesota 1947, Chapter 487, as amended, being Minnesota Statutes, Sections 462.411- 462.711 (the "Act ") and Lloyd W. Miller and Barbara J. Miller, his wife (the "Redeveloper "). WITNESSETH: 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 r plan for the Project; and WHEREAS, the Agency requested the County of Carver (the r "County ") to certify the current assessed value of the real pro - perty 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 Plan are to: acquire for rehabilitation economically or functionally obsolete or underutilized buildings and land; provide a redevelop - ment site of character that will encourage future development of the area and improve sources of public revenue; eliminate blighting influences which impede potential development within the aforementioned redevelopment project; provide maximum oppor- tunity for redevelopment by private enterprise, consistent with the needs of the City as a whole; encourage private rehabilita- tion of structures within the redevelopment project; and WHEREAS, in order to achieve the objectives of the Redevel- opment 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 Redevelopment 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 pro- visions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the Agency has concluded agreements for the redevelopment of the various properties to be acquired in furtherance of the Project; and WHEREAS, said agreements provide recourse for the Agency should such redevelopment not be completed; and WHEREAS, Section 273.76 (Subd. 8) of Minnesota Statutes empowers the Agency to enter into written assessment agreements with redevelopers of properties within the Project Area; and WHEREAS, it is contemplated that pursuant to this Agreement, the Redeveloper will construct certain minimum improve- ments upon the Redevelopment Property; and WHEREAS, the Agency, and the Redeveloper desire to establish a Minimum Market Value for the Redevelopment Property and the Minimum Improvements to be constructed thereon pursuant to Minnesota Statutes, §273.76, Subd. 8, and §462.445, Subd. 4 (1 and 16); and WHEREAS, the Agency and the•Assessor have reviewed the Construction Plans for the Minimum Improvements; and WHEREAS, the Assessor, acting pursuant to §273.76, Subd. 8 of Minnesota Statutes, has executed a Certification By Assessor as to the Redevelopment Property and the Minimum Improvements to be constructed thereon; and WHEREAS, the original copy of said Certification By Assessor, or a true and correct copy thereof is attached to this Agreement as Exhibit C and made a part hereof; -2- NOW TIiEREFORE, 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 Hoge_ng and Redevelopment Act, Minnesota Statutes, Sections 462.411 e, seg., as amended. "Agency" means the Housing ar.1 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 eligible 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 eligible assessments, pursuant to Article IV of this Agreement or pursuant to agreements similar to this Agreement with other redevelopers of land in the Project Area. "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, commissionerr of revenue, or any court) against which the real property tax is imposed. r-- "Assessor" means the Carver County Assessor or a City Assessor having the powers of the Carver County Assessor as to properties within the Project Area. , "Bonds" means the general obligation bonds or obliga- tions 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 No. 5 to the Plan. The term "Bonds" shall also include any general obligation bonds or obligations issued to refund any Bonds. "Certification By Assessor" means the Assessor's cer- tification pursuant to Section 273.76, Subd. 8 of Minnesota Statutes, and Section 3.3 of this Agreement that he has reviewed the Construction Plans for the Minimum Improvements and the -3- Market Value previously assigned to the Redevelopment Property, and that upon completion of said Minimum Improvements the market value assigned to the Redevelopment Property shall not be less than a specified dollar amount stated therein, and that the Market Value of the Redevelopment Property as of the date of exe- cution of such certification is a specified dollar amount stated therein. "Certification of Occupancy" means the certification provided to the Redeveloper, or the pur;haser 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 (if any); (4) floor plan for each floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan. "County" means the County of Carver. "Date of Execution" means the date on which the Redeveloper signs this Agreement or the date on which the Agency signs this Agreement, whichever is later. "Eligible Assessments" means those special assessments (and those unlevied lateral unit charges and trunk unit charges) which are more particularly described in Modification No. 5 to the Plan, and which have been imposed by the City on tracts of lands contained within the plats of Chanhassen Lakes Business Park and Park II in connection with either City of Chanhassen Improvement Project 78 -3 or in connection with any other City public improvement project which specifically benefits said tracts of land within said plats. The term "Eligible Assessments" does not include any building permit fees, any park charges owing to the City under applicable ordinances, or any availability or connection charges owing to the City pursuant to Section 444.075 of Minnesota Statutes of other applicable statu- tes or pursuant to appliable City ordinances, or any sewer availability charges or similar charges imposed by the Metropolitan Council or Metropolitan Waste Control Commission or similar governmental unit. The term "Eligible Assessments" does not include any interest imposed by the City in connection with special assessments, unlevied lateral unit charges, or unlevied trunk unit charges. "Event of Default" means an action by the Redeveloper listed in Article VI of this Agreement. -4- "Substantial Completion" means sufficiently complete, in accordance with the Construction Plans for the Minimum Improvements, so that the Redeveloper (or his successors and assigns) may occupy the work for the use for which the Minimum Improvements are intended. If the Minimum Improvements are to be occupied by one or more tenants rather than the Redeveloper and no leases have been entered into with any tenants that would serve as the basis for constructing and installing interior r improvements in the Minimum Improvements, then "Substantial Completion" shall mean that the structure, common building systems and utilities are substantially complete so that a Certificate of Occupancy may be obtained by Redeveloper upon completion of the construction and installation of normal and customary interior improvements for the benefit of tenants occupying space in the Minimum Improvements. "Tax Official" means any City or County assessor, county auditor, City, County or State board of equalization, the com- missioner of revenue of the State, or any state or federal district court, the tax court of the State, or the State Supreme Court. 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 "tax increment district" created, adopted, certified and approved pursuant to Minnesota Statutes, Section 462.585. (d) The Agency has established the Project Area as a "tax increment district" and has requested that the County audi- tor 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 elimi- nating or preventing the development or spread of deteriorated or deteriorating areas. _ (f) To finance the cost of the activities to be under- taken by the Agency, the Agency proposes to use the proceeds 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. "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, commissioner of revenue, or any court). "Maturity Date" means the date when the principal of, premium (if any), and interest on the Bonds are paid in full. "Minimum Improvements" means those improvments which are more particularly described on Exhibit A attached hereto and made a part hereof. "Minimum Market Value" means the Market Value established pursuant to Section 3.3 of this Agreement. "Modification No. 5" means the fifth amendment to the Plan adopted by the Agency establishing a program of Assessment Reduction Payments and the resolution adopting the same. "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 pro- perty pursuant to Chapter 273 of Minnesota Statutes and not including any special assessments levied pursuant to Chapter 429 of Minnesota Statutes. "Redeveloper" means Lloyd W. Miller and Barbara J. Miller, his wife or their executors, successors and assigns. "Redevelopment Property" means the real property which more particularly described in Exhibit B attached hereto and made a part hereof. "Redevelopment Plan" means the Plan. "State" means the State of Minnesota. -5- Section 2.2 Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: (a) The Redeveloper is a partnership duly organized and in good standing under the laws of the State of Minnesota, is not in violation of any provisions of its articles of partnership, 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 partnership action. (b) The Redeveloper will con- :.ruct the Minimum Improvements in accordance with the to .ns of this Agreement, the Plan and all local, state and federal caws and regulations (including, but not limited to, all known applicable environ- mental, zoning, building code and public health laws and regulations), as such laws and regulations are enacted and enforced during the period the Minimum Improvements are being constructed, and substantially in accordance with the Construction Plans which have been approved by the Agency. (c) The Minimum Improvements constitute a permitted use or authorized conditional use under the zoning ordinance of the City, a permitted use under the Plan and the Act. (d) That at such time or times as may be required by law, the Redeveloper will have complied with all known applicable local, state and federal environmental laws and regulations, will have obtained any and all know applicable environmental reviews, licenses or clearances as to the Redevelopment Property, and that Redeveloper has received no notice or communication from any local, state or federal official that the activities of the _ Redeveloper in the 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, regu- lation or review procedure or which would give any person a valid claim under state environmental rights statutes. (e) The Redeveloper will use all reasonable 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. (g) The real estate taxes and any installments of spe- cial assessments levied against the Redevelopment Property are not in default and that future real estate taxes will be paid when due. -7- ARTICLE III. ASSESSMENT REDUCTION PAYMENTS. Section 3.1 Obligation of Agency to Make Assessment Reduction Payments. Upon completion of the Minimum Improvements and issuance of the Certificate of Occupancy, the Agency, from the tax increment generated by the Project, shall make payments (in the manner and in the amount provided hereinafter) in reduction of the eligible assessments which have been imposed on the Redevelopment Property and which were iipaid upon the date of execution of this Agreement. The Agency, at its option, m<i satisfy its obligations to make assessment reduction payments under this Agreement by either making one lump sum payment or by making a series of semi- annual payments as individual installments of eligible assessments become due and owing to the City. In the event that the Agency elects to make said assessment reduction payments in the form of a series of semi - annual payments as individual installments of eligible assessments become due and owing to the City, the Agency shall also pay the interest imposed thereon by the City; but only that portion of such interest which is attri- butable to that portion of any such installment which the Agency is obligated to pay under this Agreement. Any such payments of interest shall not be a credit against the amount of any assessment reduction payment which the Agency is obligated to make under this Agreement. In the case of eligible assessments which have then already been certified to the County's auditor for collection with real estate taxes, said assessment reduction payments, together with any interest which the Agency is obligated to pay under this Section 3.1, shall be made directly to the County Auditor in full or partial satisfaction, as-the case may be, of said eli- gible assessments. In the case of eligible assessments which have not then been certified to the County's auditor for collection with real estate taxes, said assessment reduction payments, together with any interest which the Agency is obligated to pay under this Section 3.1, shall be made to the City's treasurer in full or partial satisfaction, as the case may be, of said eligible assessments. In the case of eligible assessments which have been paid by the Redeveloper subsequent to the date of execution of this Agreement, said assessment reduction payments, together with any interest which the Agency is obligated to pay under this Section 3.1, shall be made directly to the Redeveloper or its designated successors and assigns. we Section 3.2 Amount of Assessment Reduction Payment. The amount of any assessment reduction payment made pursuant to this Agreement shall be $ Twenty -One Thousand Seven Hundred and 00 /100ths Dollars ($21,700.00) which amount is computed as the lesser of the following amounts: (a) the sum of the principal balance of the eligible assessments imposed on the Redevelopment Property, together with accrued interest thereon, both prin- cipal and interest being computed as of the date of execution of this Agreement; or (b) seven percent (7 %) of the excess of the Minimum Market Value of the Redevelopment Property and the Minimum Improvements constructed thereon as established pursuant to Section 3.3 of this Agreement over the Market Value of the Redevelopment Property as of the date of execution of the Certification By Assessor, and as certified in said certification. r gum I Section 3.3 Minimum Market Value to Be Used In Computing Real Estate Taxes. Upon completion of the Minimum Improvements by the Redeveloper, the Minimum Market Value which shall be assessed for the Redevelopment Property and the Minimum Improvements thereon shall be Three Hundred Forty -Three Thousand Seven Hundred and no/ 100ths------------------------ - - - - -- (Dollars) ($343,700.00) (hereinafter the Minimum Market Value). The Minimum Market Value established in this section shall be of no further force and effect and this Agreement shall terminate on the later of the two following dates: (a) the date on which the Bonds are retired, or (b) the date on which all assessment reduction payments due the Redeveloper (or his successors and assigns) pursuant to this Agreement have been made. In any event this Agreement shall terminate no later than November 28, 2007. Provided, however, that nothing in this Agreement shall limit the discretion of the Assessor to assign a market value to the Redevelopment Property in excess of the Minimum Market Value set forth in this section, nor prohibit the Redeveloper from seeking, through exercise of administrative, and legal remedies, a reduction in market value for property tax purposes; subject, however, to the restriction that the Redeveloper shall not seek any reduction in said market value below the Minimum Market Value, as set forth in this section, during the term of this Agreement regardless of actual market value which may result from incomplete construction of the Minimum Improvements, destruction or diminution by any cause, insured or uninsured, except in the case of acquisition or reacquisition of the Redevelopment Property by a public entity. Section 3.4 Termination of Entitlement to Payment. Notwithstanding any language in this Agreement to the contrary, the obligation of the Agency to make any assessment reduction payment to the Redeveloper (or its successors and assigns) shall become null and void on March 15 ' 1984, unless the Minimum Improvements are in a state of Substantial Completion (as defined in Section 1.1) on or before said date. Nevertheless, in the event Redeveloper is delayed in substantially completing the construction of the Minimum Improvements on or before the date specified herein by reason of labor disputes, casualties, acts of God or the public enemy, governmental embargo restrictions, short- ages of fuel, labor or building materials, action or non - action of public utilities or of local, state or federal governments affecting the work, or other causes beyond the reasonable control or fault of Redeveloper, then the date for substantial completion of the Minimum Improvements shall be extended for the additional time caused by such excused delay. Any such extension resulting from an excused delay shall not serve to extend the effective date of the Minimum Market Value or the real estate taxes levied with respect to the Minimum Market Value provided for in this Agreement. QE _ In the event the Minimum Improvements are not in a state of Substantial Completion on or before the date specified herein or such extension thereof as may result from an excused delay, and as a result thereof the Agency elects not to make any assessment reduction payment in accordance with the terms of this Agreement, then this Agreement shall cease and terminate without further obligation or liability on the part of the Agency or Redeveloper. ARTICLE IV. CONSTRUCTION OF MINIMUM IP ?ROVEMENTS Section 4.1 Construction of Minimum T(iprovements. The Redeveloper agrees that it will construct the Minimum Improvements on the Redevelopment Property and at all times prior to the Maturity Date will not cause a reduction in the real. estate taxes paid in respect of the Redevelopment Property below the real estate taxes that would be assessed with respect to the Minimum Market Value through: (a) willful destruction of the Minimum Improvements or any part thereof; or (b) willful refusal to reconstruct.the Minimum Improvements if the Minimum Improvements are damaged or destroyed. Section 4.2 Certificate of Occupancy r (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 Certificate of Occupancy executed by the City's Building Official and by the Agency's Executive Director so certifying. Such certification by the Agency shall be a conclusive determination of satisfaction. and j termination of the agreements and convenants in this Agreement to construct the Minimum Improvements. Such certification and such determination shall not constitute evidence of compliance with or r 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 fifteen (15) days after written request by the Redeveloper, provide the 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. -10- (c) The construction of the Minimum Improvements shall be deemed to be completed when such Minimum Improvements are in a state of Substantial Completion as defined in Section 1.1 of this Agreement. ARTICLE V. REAL ESTATE TAXES. Section 5.1 Real Estate Taxes. The Redeveloper agrees that, upon completion of the Minimum Improvements and prior to the ter- mination date stated in Section 3.3 of this Agreement, it will not cause a reduction in the Market Va'ie of the Redevelopment Property and the Minimum Improvements -glow the amount of the Minimum Market Value and that it will ,ot seek a reduction in the value of the Redevelopment Property and Minimum Improvements below the Minimum Market Value: (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 constitu- tionality 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. -11- 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. However, the Redeveloper is free to contest said Market Value to the extent that it exceeds the Minimum Market Value established in Section 3.3 of this Agreement. ARTICLE VI EVENTS OF DEFAULT. Section 6.1 Events of Default Defined. The following shall be "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 Redeveloper to pay when due any real estate taxes on the Redevelopment Property; (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 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 satisfac- tory assurances that the Redeveloper can and will cure such failure or failures within reasonable time. (d) If the Redeveloper shall admit in writing its ina- bility 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 substan- tial part of the Redevelopment Property. r (e) If the Redeveloper shall file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws. -12- 7 (f) If the Redeveloper, on a petition in bankruptcy filed against it, be adjudicated a bankrupt, or a court of competent jurisdiction shall enter 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 be vacated or set aside or stayed within sixty (60) days from the date of entry thereof. Section 6.2 Remedies on Default. Whenever any Event of Default referred to in Section 6.1 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 Occupancy. (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 pur- suant to this Agreement. Notwithstanding the prior provisions of this Section 6.2, it is agreed that the Agency shall not be entitled to withhold a Certificate of Occupancy in the event that the Agency elects to cancel and rescind this Agreement under clause (a), or Redeveloper reimburses Agency for any Assessment Reduction Payments made by Agency prior to the occurrence of such Event of Default, together with any reasonable expenses incurred by Agency in enforcing the provisions of this Agreement, or Redeveloper cures any Event of Default to the satisfaction of Agency and the parties are restored to their former positions under the provisions of this Agreement. 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. -13- 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, pre- - vious or subsequent breach hereunder. ARTICLE VII. ADDITIONAL PROVISIONS. Section 7.1 Conflict of Interest; Aq)ncy Representatives Not Individually Liable. No member, officirl or employee of the Agency shall have any personal interes , direct or indirect, in the Agreement, nor shall any such memt,:r, official, or employee participate in any decision relating tj this Agreement which affects his personal interests or the interests of any cor- poration, partnership, or association in which he is, directly or indirectly interested. No member, official, or employee of the Agency shall be personally liable to the Redeveloper or any suc- cessor 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 disre- garded 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 I requested, or delivered personally and (a) in the case of the Redeveloper, is addressed to or delivered personally to the Redeveloper at f I r (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 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. -14- 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 Covenants Running With Land. The recording or filing 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 Property, or any part thereof, whether voluntary or involuntary, and shall be binding upon them. The Redeveloper agrees to supply the applicable owner's duplicate certi.�:.cate of title, if any, so as to permit the recording of a copy c this Agreement in the office of the Carver County Recorder. It is intended and agreed that the covenants and agreements set forth in Article V of this agreement shall be covenants running with the land and that they shall, in any event, and without regard to technical classifica- tion or designation, legal or otherwise, be binding to the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by the Agency, its successors and assigns. In the event that any transferee or assignee of the Redeveloper (including without limitation any mortgagee taking possession of or title to the Redevelopment Property as a result of any default in the terms of any mortgage to which the Redevelopment Property is now subject or may be subject in the future) breaches any one of the covenants and agreements set forth in said Article V, the Agency may treat such breach as an Event of Default as provided in Article VI of this agreement and may exercise any one or more of the remedies set forth in Section 6.2 of this agreement. Section 7.7 Limitation of Liability. The Redeveloper and its successors in fee title ownership of the Redevelopment Property shall be responsible for performing and observing the covenants and agreements set forth in this Agreement only during the time that the Redeveloper or a successor is the fee title owner of the Redevelopment Property. In the event fee title to the Redevelopment Property is conveyed to a successor in interest, the grantee shall be automatically responsible for performing and observing the covenants and agreements herein contained and then the grantor shall be automatically freed and relieved from and after the date of such conveyance of all obligation and liability in connection with the performance and observance of such cove- nants and agreements. Section 7.8 Discharge from Land Records. The Agency agrees promptly upon request by Redeveloper or its successors and assigns, after the expiration or termination of this Agreement and the satisfaction of the covenants and agreements contained herein required to be performed by Redeveloper, to execute a termina- tion agreement or other similar document in recordable form that shall serve to release and discharge the provisions of the Agreement as a lien or encumbrance of the Redevelopment Property from the records of the office of the Registrar of Titles of Carver County, Minnesota. -15- IN WITNESS WHEREOF, the Agency has caused this Agreement 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 cor- porate 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 (Seal) iRedeveloper By: ' BY Its And: BY Its r -16- r I i r STATE OF MINNESOTA) ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this day of 19_, by , and the and of the Housing and Redevelopment Authority of the City of Chanhassen, Minnesota. Notary Public County: My Commission Expires: STATE OF MINNESOTA) ss. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of , 19_, by , or , a Minnesota Corporation, on behalf of the corporation Notary Public County: My Commission Expires: -17- STATE OF MINNESOTA) ss. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of 19_, by , of 7' 1 a Minnesota partnership. Notary Public County: My Commission Expires: THIS INSTRUMENT DRAFTED BY: Chanhassen Housing and Redevelopment Authority P.O. Box 147 Chanhassen, MN 55317 (612) 937 -1900 mr-Tr EXHIBIT A "Minimum Improvements" means a 10,000 square foot office /warehouse /manufacturing building constructed of concrete block and masonry. I EXHIBIT B Lot 6, Block 5, Chanhassen Lakes Business Park, according to the plat thereof on file and of record in the Office of the Registrar of Titles, in and for Carver County, Minnesota. EXhlBiT C CERTIFICATION BY ASSESSOR Tax Parcel No. 25 -190 -0260 Street Address 1401 Park Road Chanhassen, MN 55317 The undersigned having reviewed the Construction Plans for the Minimum Improvements and the Market Value assigned to the Redevelopment Property upon which the t- inimum Improvements are to be constructed pursuant to the attache assessment agreement, and being of the opinion that a "Minimum Y rket Value" set forth in this Certification appears reasonable hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the Redevelopment Property (more particularly described in Exhibit B-to the attached assessment agreement) hereby certifies that the market value assigned to such land (the Redevelopment Property) and improvements (the Minimum Improvements) upon completion of construction hereon shall be not less than ihrpp hlndrpd fn ty three thousand seven hundred * * * * * * * ** Dollars ($ 14, inn on ) until termination of the attached assessment agreement. The undersigned further certifies that the market value of the Redevelopment Property as of the date of execution of this certification is thirty three rhousnad seven h nd d * * * ** Dollars ( $ z z ,.-7nn > . For the purposes of this certification, the words used herein have the definitions utilized in the attached Assessment Agreement. STATE OF MINNESOTA) ss. COUNTY OF CARVER ) The foregoing instrument was acknowledge,)d before me this day of a 19 &L, by _ re_1q Zin4er Chanhassen. the Assessor for the City of CITY OF CHANHASSEN RFCEIVE© MAY o 31983 COMMUNITY DEVELOPMENT DEFT G Notary Public County: My Commission Expires: ^1E 4 MARY ANN OHNSUA� � ),•!( NJ TARV FUBUC - MMNE`JDT� IQf��y .;A.�v =R COUNTY 11.1985 t s.YI.Y.y ITN Nr.....YN♦ .+...J i. --IHANHN ncN H.rt -- A U w� U n i F w 1 A i1 L 0V -to ^83 •AJE CHECK 1 A M U U N T C L A I M A N T P U R F 0 S E - � 018878 930.31 ' B R N INC FEES, ,SERVICE 018879 1.950.00 CARVER COUNTY TREASURER MISC CONTRACT SVCS Payment in lieu of real estate taxes e 0-18804- -3 ♦- 159.75 LAD : 'BLD6 ♦ GND- Bepairs- due to -snow 018881 RSON ♦ MERTZ FEES, SERVICE �_� --- ,'----- - - - - -- -_ --� 018682 437.79 SCOTT MARTIN TRAVEL ♦ TRAINING ,] 6.542.84 CHECKS -MRIT -TEN - -- ---- - - - - -. —> TOTAL OF 5 CHECKS TOTAL - 6.582.84, lal,j zz ,o ]] Q-' . a^ +z " �7 + Lrte. _. nP �I.0 PT ® CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 SUBJ: HRA Payments in Lieu of Taxes for old Instant Web tl fR si�"n pFfkif r I PUS SELL H. LARSON CP11G M. MERTZ OF COUH9EL �•ARVEY E. SNAAR MARK C. MCCULLOUGH Chanhassen HRA c/o Scott A. Martin Executive Director Box 147 Chanhassen, MN 55317 LARBON & M UTZ ATTORNEYS AT LAW 1900 FIRST BANK PLACE WEST MINNEAPOLIS, MINNESOTA 55402 May 2, 1983 To professional services rendered April, 1983, as follows: Alscor Investors. Venture No. 2. TELEPHONE (612) 333 -1511 4/6 Review ownership per certificates of title, telcon with Recorder's office re spelling error. 4/7 Travel to Recorder's office, do vault check to verify ownership, meet with Auditor to verify no delinquent tax, record assessment agreement, attempt to call Marc Anderson at Opus, correspondence to SAM. 2.1 hours $152.25 HRA IW Buildinq 4/15 Telcon from Jim Holmes re taxable status of IW Building. 0.1 hours $ 7.50 TO FEE: $159.75 a I declare, under penalties of perjury t the above s just and correct and that no part t ereof has be n aid. ,,<ue t4i,6- 36b RUSSELL H. CARSON Chanhassen HRA Attorney RHL:mep cc: All Council members Jean Meuwissen Donald W. Ashworth CITY OF CHANHASSEN RECEIVED MAY 03 9983 COMMUNITY DEVELOPMENT DEPT MINNEAPOLIS CHEYENNE DENVER City of Chanhassen 7610 Laredo Drive Chanhassen, MN 55317 ATTN: Mr. Scott Martin INVOICE DATE: March 31, 1983 JOB NO: 62 -8214 RE: Engineering /Planning /Surveying Services for Downtown Redevelopment Project as per Agreement Per Diem Services - Phase I Work Task 1.7 o Meetings with staff and council /committee - on -going consultation Period of March, 1983 Classification Hours Principal 3.00 Associate 2.00 Salary Cost - $ 170.78 Fee - $ 170.78 x 2.0 = $ 341.56 1 1 x0 k CITY OF CHANHASSEN )�AM / ]3 rN--' "IAtsc-JJ 4127 APR 2 01983 04 -43n _ C IMMUNITY DEVELOPMENT DEPT BATHER. RINGROSE. WOLSFELD. $ARVIS, GARDNER. INC. 2829 UNIVERSITY AVE. S.E. MINNEAPOLIS, MN 55414 PHONE 612 / 379.7878' r F r- MINNEAPOLIS CHEYENNE DENVER Mr. Scott Martin HRA Exectuive Director City of Chanhassen 690 Coulter Drive P.O. Box 147 Chanhassen, MN 55317 INVOICE Ni 328'"3 DATE: March 31, 1983 J0B NO: 87 -8243 RE: Instant Web Feasibility Study For Professional Services Performed during March, 1983, including: • Meetings with the coordinating committee to present the final draft report, and with HRA to present the study. • Preparation of 2411x3611 boards. • Final editing, reproduction of the final report, and delivery of 20 copies to the City of Chanhassen. Classification Hours Rate Amount Sr. Associate 5.00 $60.00 $ 380.00 Professional II 8.25 35.00 288.75 TOTAL BILLED TO DATE: $15,494.31 RATHER. RINGROSE, WOLSFELD, JARVIS, GARDNER, INC. 2829 UNIVERSITY AVE. S.E. o K. 4(g3 404 -43Z RIF 1:rtlrf--TJ APR 181983 r,0!A,NjUNiTY DEVELOPMENT DER MINNEAPOLIS, MN 5W4 PHONE 61213797878 CHANHASSEN H.R.A. A C C 0 U N T S P A Y A 8 L E 04-1e-83 PAGE 2 CHECK 0 A M 0 U N T C L A I M A N T P U R F C S E 018786 5.754 98 8 R W INC FEES, SERVICE 018787 50.64 CITY OF CHANHASSEN UTILITIES S. & W. Bill C Is gi----CjJRiYIVATED—WA-KAGEKETT—FE ES-, -SERVICE- C18789 210.25 LARSON + MERTZ FEES, SERVICE C187?0 ;4C C0 RETAIL SYSTEMS INC FEES, SERVICE Seattle Conference 6 I0'E34.68 CHECKS WRITTEN TC T AL OF 7 CHECKS TOTAL 1 1.209. 1 6 i. J RUSSELL H. LARSON CRAIG M. MERTZ OF COUNSEL HARVEY E. SKAAR MARK C. MCCULLOUGH Chanhassen HRA c/o Scott A. Martin Executive Director Box 147 Chanhassen MN 55317 LAnsox & M nTZ ATTORNEYS AT LAW 1900 FIRST BANK PLACE WEST MINNEAPOLIS, MINNESOTA 55402 April 11, 1983 To professional services - rendered March , 1983, as follows: TELEPHONE (612) 333 -1511 3/11 Corres to Jim Holmes re taxable status of old IW building 3/14 Telcon w /Jim Holmes re taxable status of old IW building. 3/16 Forward background materials to Holmes at request of SAM. 3/31 Meet w /DWA re text of proposed agreement between City and HRA as to management of tax increment revenue. TO FEE: $210.25 " I declare, under penalties of perjury, that the above claim is St and correct and that no part thereof has been paid. 4.dJb_t�3u� RUSSELL H. LARSON Chanhassen HRA Attorney RHL:ner cc: All Council Members Jean Meuwissen Don W. Ashworth t I DELAHUNT VOTO & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Birch Lake Professional Building • 1310 E. Hwy. 96 • White Bear Lake, MN 55110 • Phone 426 -3263 RONALD I. DFLAHUNT, RETIRED March 16, 1983 ROBERT I. VOTO, CPA TIMOTHY E. REARDON, CPA ROBERT G. TAUTGES, CPA City of Chanhassen 690 Coulter Drive Chanhassen, ON 55317 For professional services rendered: Preparation of Special Report - Tax Increment Financial Planning (Tax Increment District #1 - Carver County); including various meetings and con- ferences with City Staff, Bond Consultant, and Consulting Engineer; projection and draft revisions relating to more current data from City Staff and Consulting Engineer; and the furnishing of twenty -three copies of such Report to the City. PARTNERS: Robert J. Voto Robert G. Tautges JUNIOR STAFF: Kenneth George STATISTICAL TYPISTS AND REPORT PROCESSORS TOTAL BILLING FUND ALLOCATION: 54 Hours @ $60.00 39 Hours @- $48.00 11 -3/4 Hours @ $22.00 35 Hours @ $15.00 Fund #306 - 1981 Tax Increment Debt Service Fund (Refunding Costs) I hereby certify that the above claim is just and correct and it has been paid. CITY OF CHANHASSEN RFCEIVED MAR 3 0190 COMMUNITY DEVELOPMENT DEPT Robert J. Voto, President $3,240.00 1,872.00 258.50 525.00 $5,895.50 A $5,895.50 oK� that no part o ''3^' �7lJo MEMBERS OF AMERICAN INSTITUTE Of CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY Of CERTIFIED PUBLIC ACCOUNTANTS PLANNINGITRAN $PORTATIONIENGINEERING /ARCHITECTURE Client: City of Chanhassen 7610 Laredo Drive Chanhassen, MN 55317 Attention: Mr. Scott Martin STATEMENT OF ACCOUNT Date: March 31, 1983 Invoice No. Date Project Name BRW No. Charges Credits Balance f Balance Forward 32485 1/31/82 Instant Web Building 62 -8020 $ .1,238,14 $ 1,238.14 I CITY OF CHAT HASSEP! RECFI1 IEEJ APR 12 X983 COM MI ."Hy DEVE OpliIENT D &i WAN 43UV�(r^rR. uw Y Total Due: 1,238.14 SENNETT. RINGROSE. WOLSFELD, JARVIS, GARDNER. INC. • 2829, UNIVERSITY AVENUE SE • MINNEAPOLIS, MN 55414 • PHONE 6121379.7878 RETAIL 612- 553 -1833 Im Mr. Scott Martin City of Chanhassen P.O. Box 147 Chanhassen, MN 55317 SYSTEMS, INC, 3025 HARBOR LANE NORTH MINNEAPOLIS, MN 55441 INVOICE NO, 5476 INVOICE DATE April 5, 1983 RSI NUMBER: ACCOUNT NUMBER: 401001 TERMS: On Receipt Preparation for and attending meeting by Don Klemp on March 24, 1983 ;i 00.00 6 K. I Y" 4-� 6(13 CITY OF CHANHASS- :CF_IVE PR 061983 COMMUNITY DEVELOPMENT DEFT RE'T'AIL SYS'T'EMS, INC. 612 -553 -1833 3025 HARBOR LANE NORTH MINNEAPOLIS, MN 55441 Mr. Scott Martin Planner /HRA Executive Director City of Chanhassen P.O. Box 147 Chanhassen, MN 55317 RSI NUMBER: Chanhassen - Proformas ACCOUNT NUMBER: 402001 Computer operation - 1.5 hours Preparation time by Don Klemp - 2 hours Review by Elliott Olson TOTAL DUE INVOICE NO. 6440 J INVOICE DATE March 24, 1983 TERMS: On Receipt $120.00 70.00 50.00 MAR 2 5 CITY OF CHA $ 240.00 O'K M" A 3 j-:�q$3 4a CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY U 690 COULTER DRIVE P,O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 MEMORANDUM TO: Chanhassen Housing and Redeve:'ipment Authority FROM: Scott A. Martin, Executive Di, ector ��p�� DATE: May 13, 1983 �1VY� SUBJ: Results of Housing Survey. The results of the recently conducted Housing Survey have been tabulated, with the raw totals attached for your review and discussion at the May 19th meeting. Unfortunately, only 226 completed surveys were returned out of the approximately 2,400 housing units in the City. This poor rate of return (9.4%) makes it impossible to draw statistically supported conclusions from the survey, since it does not represent a random sampling of all households. HOUSING SURVEY Your Present Housing A. In what type of housing do you presently live? )_Si 1. A house 4. A condominium or townhouse �d 2. An apartment lenkli n5 �- S. Other Mease Specify) of two or more units 3. An apertment in is private home B. How long have you lived at your current address? 1. Less than 2 years 41 4. 1120 years 6S 2. 2 5 years 33 5. 21 or more years 3. 610 years C. Are you satisfied with your current housing? 19 1. Yes A4 2. No 10 3. Unsure D. If you are satisfied with your current housing, how long do you intend to remain mere? -;RiAt 1. Less than 2 years 7 5. As long as my mate does Z. 2 5 years .£O 6. Other (Please Specify) 3. 6 or more years 74 4. As long as I am Physically able E. If you are considering moving from your present housing, what are your reasons? lA 1. Rent / mortgcge payments .24 5. Change in employment are too high situation r! 2. Need more space 53 6, Other (Please Specify) 23- 3. Require less space , 4. Housing in poor condition F: Have you applied for and been denied government rent payment assistance within the last 3 years? 1 1. Yes J31 2. No G. Are you planning to move in the near future? 2 1. Yes 14 6 2. No 4.4 3. Unsure Prospective Development Questions It developed, the HRA Housing Project would consist of senior citizen and handicapped accessible apartments receiving government assistance. Under provisions of the assts Pence program, residents who quality would pay rent based on a percentage of their annual income. Although no decision has been made as to the specific location for the housing, a vacant site lying immediately to the north of downtown Chanhassen and to the west of St. Hubert's Church has been identified as a potential site in the Down. town Redevelopment Plan. Please respond to the following questions with your personal situation In mind. It is very important that we get an accurate response to when and if you would realis tically consider moving from your current housing into a government assisted apart. ment building. H. If a government apartment building for seniors and handicapped persons were constructed in Chanhassen in 1984, with occupancy in 1985, would you move from your residence into this building? 14_ 1. Yes Why or Why Not? LIL 2. No /to 3. Unsure I. It you own a home, would you sell your home to move Into a government. 'sled apartment Wilding in Chanhassen? J1._ 1. Yes Why or Why Not? f 1�2. No 3. Unsure 4. I do not own is home J. If the apartment building were ready for occupancy In 1985, and you were in terested In moving Into the building, when would you prefer to move? 10 1. Immediately upon opening of the building. .ZS� 2. As soon as I could sell my boom. 3. When 1 became disabled or could no longer live alone. 4. When hey mate dies or becomes disabled. AL_ 5. Other (Please Specify) K. If you were to move into the government apartment, what common area facilities and services would you use if they could be provided? (Please check as many items as apply.) -11- 1. Less than 40 ZZ 1. Community Room 69 6. Garden Plots I?2r 2. Hobby /Craft Room � 7. Library /Reading Room 0.30 3. Parking Stall J`ie S. Other (Please Specify) 133 4. Laundry Room 3 5.6670 -05, 5, One Meal Per Day 6. 7175 (extra Marge) _ 7. Over 75 Your Currant Situation L. What is your age? (If there are two adults in your household, please answer for each person. Please check appropriate tax.) Person 1: Sex: O Male female f Person d2: Sex: yrx+ale 0 Fama/e �'" �L 1. Less than 40 -11- 1. Less than 40 2.4054 .60 2.4054 /8 3. 5559 19 3. 5559 4. 6065 9 4, 6065 5.66 -70 3 5.6670 8 6. 71 75 6. 7175 S 7. Over 75 _ 7. Over 75 M. What is your marital status? In, 1. Married JL 2. Single 103. Widowed -1- 4. Divorced N. How many people live in your household? A3 1. No one besides myself 4 3. Two other persons 2. One other person Ac antl myself JEand myself 4. Three or more persons 0. Doyo own your home, rent, or live with others rent free? ` _I`L`f 1. Own a/ 2. Rent 0 3. Live with others rent free P. If you own a home, what would you estimate is Its current sale value? Q. What is the approximate total amount per moah that you spend on rent or mortgage payments, plus utilities? $� . R. What it your approximate annual household income? 7 1. Lest than $ 8,500 -Lr- 5. $21,001 - $27,000 10_ 2.S 8,501 - $10,000 31 6. $27,001 $33,000 L 3, $10,001 - $16,000 sX- 7. Over $33,000 4. $16,001- $21,000 Optional Question S. Please estimate the dollar amount of your assets other than your home. (Fill in the approximate dollar amount for each category that applies.) 1. Savings $ 1 4. Money Market Certificates 2. Stocks &Bonds$_ $ 3. Investment Property .L 5. Other )Pie S 'f 1 Housing A.. T. Do]mu have any of the following dlsabllitied (Please check any which apply.) 1. Mobility impaired (use wheelchair, cane, crutches, walker, or lag Tema 1. i2. Learning disability. 3. Visually impaired. ' 4. Hearing impaired. I') 6. Other f U. If you are mobility impeirad, ern you climb mirR �,Ve 1.G NO. V. IF YOU HAVE A DISABILITY, please check each of the following design M force which would benefit you: .. . _L 1. Grab Bare 4. Specially Designed Kitchen 2. Rampe s 6. Emergency Warning System 3. Wide Doorways with strob lights, fans, fee. W. Do you need assistance in looking after personal needs? r Yes No K. Do you have any special transportation rise&? � Yes 20(- No If w, briefly explain Y. Do you know of any seniors or handicapped persons who have moved put of Chanhassen within the last 3 years because affordable rental housing win not available to them? �. 1, Yet 15 2, No If so, how many (household)? Z. Do you know of any seniors or handicapped persons who would prefer to I)ve In Chanhassen but have been unable to find suitable, affordable housing? 1. Yes 1r* 2. No If se, how many?_ Thank you for your cooperation in completing moor puenedeboomr. Please feel free to add any special comments you may have and return with your completed question. noire to Chanhassen City Hail by February 28, 1983. ase ptti y I J%r 3 i ti � Ijlllli l r 4't s' it e E,ddrlaate _ rh[r+(t.(6i .6 Ul�k.,ui rMu'1 M1 J - 1�t 111 i tr L' 1 a .3�i j tijf 0 a2,5oo 30) 0 ©0 3s� 00 0 coo 5� cc 0 l00 0 00 CZ� (02) 000 (p5 000 (07j 000 -70 000 (.-i) "71)000 7z)000 %21goo Ct °> 7-3,000 (z) 100,WO (ZO) 79,000 C(3) ��ooO IZ) 81,000 C'J 8z,000 C 1� coo SSA 000 C4) 15`11000 21o�0a0 g�jl9oa 251jcooC�� 90 Ooa Cw) 9(, Sod 15-, COO Ct °> 99, oco (-zi 100,WO (ZO) (06) 000 CZ-)\ I1o)OOD 5 J 1131boo C'J 1115 ) OCO C 1� 111,000 I l8, 000 12.6, DOD C/ ° 1Z! ;)Oco t;IZ) 13o,ox> C3� I qco 000 c3� 145 000 C2� 15c)) 000 C12) 1 -75,aoo I $o)DOO C3� Zdg000 c4� 21o�0a0 251jcooC�� 3Q0,� COO 32,5 cco 35-0)0cc:) 'KAa�szNG Sum '7o. So. 1 00. 120 . Ito ISO 130 195— (Z�) 69) Zoo C5) a3a aSo 2ya 300 (6) 3 t5" 3z0 32 X 33 0 335 35-0 3c�3 375- (3) 395,' 4o0 4o z Lk o 417 �Lu' 45-0 60) 4ss 475- (3) 49q- S1 Z 5zs` (2) 53b 5'40 SSC) (q) Sb0 5-70 S7S (00o(9) cPZs Asa (8) (P85� 700(/2-) -730 73s 7506S) 790 w5s 800 01) Iwo cs\ 1300 ( ) qs0 9-70 1000(t) IZ00 [300 /400 11500 I (moo 0 I to-r- 0 SPECIAL COMMENTS ON HRA HOUSING SURVEY As a home owner, I want to stay in Chanhassen but property tax will determine that. When taxes go up 44% on a 27 year old home over the last year, it is time to get out of rural Carver County and move back to Hennepin where we at least get some services for our taxes. I know of several people who already have homes "for sale" and are going back to Hennepin County. Let's keep Chanhassen residents off !ne welfare and government aid programs. We don't need people waiting for handouts in our area. I work for the County and feel there is plenty of housing available for Seniors in the area. With new buildings going up in Chaska and Excelsior, I hope you'll wait to see how quickly they fill before pursuing this project. It seems to me that we have more low cost housing being built than anything else,.i.e. New Horizons,.the Meadows or the apartments near the school. We can't get a large grocery store, but we sure get liquor stores and quick food places. Please keep Chanhassen special so that people are proud to live here and raise children here. Where do you propose the alternate site to be? In my backyard? You do not consider all the issues and people's feelings in the area of up keep, traffic, etc. Consider. the long range effects: In general, you shove ideas down the throat that you want and do not consider those people already living in the area. Put it in Eden Prairie! Please consider the residents that already live here. I feel there is a need in this community for this type of development. Why can't you catch on to the idea that we need less government,. i.e. less taxes - NOT MORE. Also, your new building code has just eliminated many X00,000 to $600,000 homes which will be built in Lake Minnetonka area and other places like Edina. The City Council drives away 90% of the business. Chanhassen taxes are triple of that they should be. Maybe these two items go hand in hand. While we are presently very happy with our housing situation, we would have to move for the health and safety of our children should the Chanhassen dump site be activated or not eliminated from site inventory. There should have been a group home on Frontier Trail, however, it does not directly apply to your question. There is a need. CHANHASSEN HOUSING PROFILE SECTION I: THE FUTURE AND SPECIAL NEEDS *The Future Based on Metropolitan Council forecasts, Chanhassen will need to plan for nearly 1,700 new households and 4,400 addi ional people between 1980 and 1990. Forecasts of Population and Households (Metropolitan Council G_rvelopment Framework) Households Population The high level of popu baby boom generation. large need for housing system. 1970 1980 1990 1,343 2,050 3,700 4,839 6,600 11,000 lation and household growth reflects the As this generation forms households, it units, just as it earlier placed demand 2000 5,400 15,500 maturing of the will cause a s on the school *Special Needs In addition to newly forming households, Chanhassen has lower income households living in the community who might need housing assistance. These households have less than 80 percent of the Area's median income and also fit into one or more of the following categories: paying more than 25 percent of income for rent; living in a unit lacking some or all plumbing facilities; or overcrowded. Estimated Housing Assistance Need For Lower Income Households (Metropolitan Council Areawide Housing Opportunity Plan) Large Total Elderly Family Family Total Renter Owner 57 0 34 23 46 0 25 21 11 0 9 2 The federal Section 8 Leased Housing Programs that used to address these needs are changing. Resources for these programs are diminishing and the programs are being changed or eliminated. The community may wish to consider local programs to meet these needs, as well as needs for newly forming and elderly households. These local programs could include using local bonding authority or tax increment financing to serve some of the housing need. These forms of financing can be used with such programs as loans -to- lenders, roll over housing, rental housing or home ownership. SECTION II: THE HOUSING STOCK *Age of Housing Stock Chanhassen's housing stock is relatively new, with only 20 percent built before 1950. While most of the housing stock is newer, some of the units are over thirty and forty years old. The City may wish to consider a housing mainten- ance ordinance or rehabilitation assistance program if deemed appropriate. Source: Chanhassen comprehensive plan and Metropolitan Council estimates. *Housing Vacancy Rates Source: Metropolitan Council quarterly vacancy data. Numbers and rates are shown here in five communities: Chanhassen, Eden Prairie, Excelsior, Carver and the Region. The 'rule of thumb' calls for vacancy rates of three percent overall; one percent single family; and six percent multifamily to allow for "normal market choice." TOTAL HOUSING VACANCY Total housing vacancies in Chanhassen for the last 2 years have measured lower than Eden Prairie, Excelsior, Carver County and the Region. Age of Str :ture Eden Carver Second Percent Year Built Nurr.::er Of Total 1939 or earlier 348 15.6% 1940 - 1949 98 4.4% 1950 - 1959 324 14.5% 1960 - 1964 227 10.2% 1965 - March 1970 420 18.8% April 1970 -1980 817 36.6% Source: Chanhassen comprehensive plan and Metropolitan Council estimates. *Housing Vacancy Rates Source: Metropolitan Council quarterly vacancy data. Numbers and rates are shown here in five communities: Chanhassen, Eden Prairie, Excelsior, Carver and the Region. The 'rule of thumb' calls for vacancy rates of three percent overall; one percent single family; and six percent multifamily to allow for "normal market choice." TOTAL HOUSING VACANCY Total housing vacancies in Chanhassen for the last 2 years have measured lower than Eden Prairie, Excelsior, Carver County and the Region. Eden Carver Second Chanhassen Prairie Excelsior County Region Quarter Units Rate Rate Rate Rate Rate 1975 33 2.4 2.5 6.2 1.8 3.4 1976 37 2.6 1.8 4.9 1.8 2.9 1977 34 2.3 1.3 2.5 2.0 2.7 1978 27 1.7 1.7 4.4 1.7 2.5 1979 30 1.8 1.8 4.9 2.1 2.7 1980 29 1.6 1.2 5.3 1.8 2.2 1981 19 1.0 1.6 4.2 1.6 2.1 1982 26 1.4 1.8 3.6 1.5 2.3 Like Eden Prairie, Excelsior, Carver County, and the Region, Chanhassen shows a very low rate of single family vacancies. Indeed, the last two years Chanhassen single family vacancy rate was lowest or tied for lowest among this group. r D r Single Family Vacancy Eden Carver Second Chanhassen Prairie Excelsior County Region Quarter Units Rate Rate Rate Rate Rate 1975 15 1.3 1.3 1.5 1.2 0.9 1976 17 1.4 1.2 1.1 1.3 0.9 1977 14 1.1 1.1 1.3 1.3 0.9 - 1978 19 1.4 1.2 1.9 1.2 0.9 1979 17 1.2 .7 1.7 1.4 0.9 ' 1980 17 1.1 .8 2.8 1.2 0.6 1981 10 0.6 1.2 .7 1.0 0.6 1982 9 0.5 .5 1.3 0.5 0.7 Chanhassen has a multifamily vacancy rate comparable to other developing suburbs like Eden Prairie. Chanhassen shows a multifamily vacancy rate which varies annually based on no perceived pattern. Multifamily j� Eden Carver Second Chanhassen Prairie Excelsior County Region Quarter Units Rate Rate Rate Rate Rate 1975 18 8.3 17.1 10.2 5.7 8.8 1976 20 9.2 6.4 8.1 5.5 7,2 1977 20 9.1 3.6 3.6 6.7 6.8 r 1978 8 3.8 5.7 6.6 5.0 6.2 1979 13 5.6 9.6 7.7 6.9 7.0 1980 12 5.2 4.8 7.6 6.3 5.7 - 1981 9 3.9 5.1 7.3 4.9 5.4 1982 17 7.4 4.8 5.7 6.0 5.9 r D r *Housing Production and Trends In Chanhassen, nearly 80 percent of the housing is single - family detached. Chanhassen with 20 percent multifamily housing units, compares with other developing suburbs including Eden Prairie. Unlike the rest of the Region, other developing suburbs and nearby communities, Chanhassen has not developed any townhouses and is less diversified in its housing stock. *Building Permit Trends - 1970 -1981 From 1970 to 1981, single- family detached housing made up nearly 69 percent of the units added in Chanhassen. Chanhassen shows some movement toward diversity of housing stock with addition in townhouse, duplex, and multifamily categories. However, the Region, developing suburbs, Eden Prairie, and Excelsior, on a percentage basis, added less single family housing then Chanhassen and more in the townhouse, duplex, and multifamily categories. Chanhassen Total Single Town Multi- Mobile Units Family House Family Homes Home No. No. No. No. No. 36 �) _ �) _ T.) _ T.) _ 7%) _ Chanhassen 2,285 1,817 0 455 13 0 (100 %) (79.5 %) (0 %) (19.9 %) (0.6 %) Eden Prairie 5,710 3,915 499 1,290 6 1974 (100 %) (68.6 %) (8.7 %) (22.6 %) (0.1 %) Excelsior 1,913 503 5 685 0 0 (100 %) (42.2 %) (0.4 %) (57.4 %) (0 %) Developing 0 64 1977 108 0 Suburbs 196,893 140,099 10,364 39,763 6,667 0 (100 %) (71.0 %) (5.3 %) (20.2 %) (3.4 %) Region 745,705 463,293 15,548 25,276 14,189 1980 (100 %) (62.1 %) (2.1 %) (34.0 %) (1.9 %) *Building Permit Trends - 1970 -1981 From 1970 to 1981, single- family detached housing made up nearly 69 percent of the units added in Chanhassen. Chanhassen shows some movement toward diversity of housing stock with addition in townhouse, duplex, and multifamily categories. However, the Region, developing suburbs, Eden Prairie, and Excelsior, on a percentage basis, added less single family housing then Chanhassen and more in the townhouse, duplex, and multifamily categories. Chanhassen Single Town Multi- Mobile Family House Duplex Family Home Total 1970 43 0 0 36 0 79 1971 47 0 4 120 -3 168 1972 66 0 0 0 0 66 1973 50 0 0 0 0 50 1974 18 0 0 0 0 18 1975 35 0 0 0 0 35 1976 64 0 0 0 0 64 1977 108 0 4 0 0 112 1978 85 0 2 17 0 104 1979 100 52 16 0 0 168 1980 41 40 18 0 0 99 1981 22 0 2 0 0 24 TOTAL 679 92 46 173 -3 987 (68.8 %) (9.3 %) (4.7 %) (17.5 %) ( -0.3 %) r r i I l Residential Commercial Industrial Public and Recreational Streets & Alleys Water Vacant and /or Agricultural TOTAL Residential Commercial Industrial Public and Recreational Streets & Alleys Water Vacant and /or Agricultural TOTAL Chanhassen Single Town 999 Multi- Mobile 0.4) ^ Family House Duplex Family Home Total Region 99,829 20,299 6,379 68,196 7,078 201,781 10.3 (49.5 %) (10.1 %) (3.2 %) (33.8 %) (3.5 %) (6.9) Developing (6.5) 14,761 (64.0) 41 (9.2) 23,027 Suburbs 56,081 12,883 3,718 23,486 4,057 101,225 Suburbs (55.4 %) (13.7 %) (3.7 %) (23.2 %) (4.0 %) Acres Chanhassen 679 92 46 173 -3 987 15,410 (68.6 %) (9.3 %) (4.7`• (17.5 %) ( -0.3 %) 54,147 Eden Prairie 2,947 993 36. , 1,237 6 5,543 43,032 (53.2 %) (17.9 %) (6.5 %) (22.3 %) (0.1 %) Excelsior 25 5 6 296 0 332 (7.5 %) (1.5 %) (1.8 %) (89.2 %) (0 %) *Land Use Data Chanhassen has a high percentage of its land either vacant or in agricultural use. Indeed, Chanhassen's land use pattern more nearly reflects the rural character of Carver County than it reflects Eden Prairie or other developing suburbs. r r i I l Residential Commercial Industrial Public and Recreational Streets & Alleys Water Vacant and /or Agricultural TOTAL Residential Commercial Industrial Public and Recreational Streets & Alleys Water Vacant and /or Agricultural TOTAL Chanhassen Acres ( %) 999 (6.75) 59 0.4) 81 0.54) 1,327 609 �8 4 :1)) 1,534 (10.4) 10,193 (68.9) 14,802 Carver County Acres ( %) 6,528 (2.6) 315 (0.1) 1,113 (0.5) 10,495 (4.4) 8,237 (3.4) 11,397 (4.7) 202,465 (84.2) 240,550 Eden Prairie Excelsior Acres ( %) Acres ( %) 2,128 (9.2) 186 (41.5) 987 �4 :3)) 23 P H 1,713 (7.4 46 10.3 1,591 (6.9; 105 23.4; 1,585 (6.9) 29 (6.5) 14,761 (64.0) 41 (9.2) 23,027 448 Developing Suburbs Region Acres ( %) Acres ( %) 72,607 (14.1) 182,864 (9.57) 5,611 (1.1 15,410 (0.81) 17,626 (3.43) 44,166 (2.31) 54,147 (10.53) 148,749 (7.78) 36,082 (7.01) 116,150 (6.08) 43,032 (8.52) 96,916 (5.1) 284,517 (55.08) 1,305,972 (68.4) 514,422 1,910,162 SECTION III *Population Aae Structure Chanhassen and Eden Prairie represent developing suburbs with over 35 percent of their populations in the 0 -9 and 10 -19 age groups. Chanhassen and Eden Prairie also have a very low percentage of their population in the 60 and over category. Chanhas 2n Population, 6,351 Percent of Age Female Percent Male Percent Total City Total 0 -9 1,448 0 9 485 (48) 519 (52) 1,004 15.8 10 -19 627 (48) 681 (52) 1,308 20.6 20 -24 236 (47) 270 (53) 506 8.0 25 -34 578 (49 606 51) 1,184 18.6 35 -59 907 (47; 1,005 M) 1,912 30.1 60 -64 69 (55) 56 (45) 125 2.0 65 and over 175 (56) 137 (44)_ 312 4.9 TOTAL 3,077 (48) 3,274 (52) 6,351 Eden Prairie Population: 16,263 Percent of Age Female Percent Male Percent Total City Total 0 -9 1,448 48) 1,575 52 R2; 3,023 19) 10 -19 1,356 48) 1,477 2,833 �17) 20 -24 587 (53) 528 (47) 1,115 (7) 25 -34 2,151 (53) 1,909 (47) 4,060 (25) 35 -59 2,161 (47) 2,404 (53) 4,565 (28) 60 -64 142 (46) 164 (54) 306 (2) 65+ 195 (54) 166 (46) 361 (2) TOTAL 8,040 (49) 8,223 (51) 16,263 t Excelsior Population: 2,523 Percent of - Age Female Percent Male Percent Total City Total 0 -9 115 (43) 152 (57) 267 11 10 -19 162 (51) 158 (49) 320 13 20 -24 186 (55) 152 (45) 338 13 25 -34 247 (48) 265 (52) 512 20 35 -59 305 (52) 285 (48) 590 23 60 -64 73 (61) 47 (39) 120 5 65+ 265 (70) 111 (30) 376 15 - TOTAL 1,353 (54) 1,170 (46) 2,523 37,046 Carver County: Population 37,046 County Population Structure - Percent of Agee Female Percent Male Percent Total City Total 0 -9 3,004 48% 3,251 52% 6,255 17% 10 -19 3,538 49 3,682 51 7,220 19 20 -24 1,758 50 1,776 50 3,534 10 25 -34 3,055 49 3,219 51 6,274 17 _ 35 -59 4,558 49 4,770 51 9,328 25 60 -64 601 53 538 47 1,139 3 65+ 1,879 57 1,417 43 3,296 9 Total 18,393 (50) 18,653 (50) 37,046 *Household Size and Type. Chanhassen's households are predominantly married couple family households. This is consistent with Eden Prairie, Excelsior, Carver County and the Region. In non - married family households of 2 or more persons, Chanhassen's distribution of male and female headed households also parallels Eden Prairie, - Excelsior, Carver County, and the Region. 2 Persons or More 1 Person Other Family Non Family Male Female Married Male Female Male Female r Chanhassen 201 137 1,469 46 119 70 31 Eden Prairie 365 315 3,920 97 422 184 80 Excelsior 146 280 502 24 109 51 37 Carver County 906 1,150 8,481 315 748 286 125 Region 69,227 107,750 418,236 16,026 64,140 26,218 19,847 r I ' r *Occupied Housinq Units by Person. Tenure Chanhassen, with a median of 2.88 persons per housing unit, is above both the County median of 2.73 and the Regional median of 2.78. Chanhassen has nearly 57 percent of its households with 3 or more persons. The county has 54 percent of its households and the Region only 45 percent of its households with 3 or more persons. TOTAL 2,073 (100.0) Owner Number Total Owner Of Persons Occupied Percent 1 person 338 (16.3) 2 persons 563 (27.0) 3 persons 356 (17.2) 4 persons 475 (23.0) 5 persons 228 (11.0) 6 or more 113 (5.5) TOTAL 2,073 (100.0) Owner Total Renter Owner Occupied Percent Occupied Percent 106 (6.7) 232 (46.2) 411 (26.2) 152 (30.3) 297 (18.9) 59 (11.8) (37.3) persons 3,471 (28.9) 214 R3.6� 14 �2.8� 105 (6.7) 8 (1.6) 1,571 (100.0) 502 (100.0) MEDIAN: 2.88 persons /Housing Unit Carver County Number Total Owner Renter Of Persons Occupied Percent Occupied Percent Occupied Percent 2 person 2,056 (17.1) 1;070 (11.4) 986 (37.3) persons 3,471 (28.9) 2 664 (28.4) 807 (30.5) 3 persons 2,089 (17.4) 1,677 (17.9) 412 (15.6) 4 persons 2,302 19.2 2,043 114 21.8 259 9.8 5 persons 1,250 10.4 1,136 12.1; 5,674 �4.3; 6 or more 843 (7.0) 777 (8.3) 66 (2.5) TOTAL 12,011 9,367 2,644 MEDIAN: 2.73 persons /Housing Unit Region Number Total Owner Renter Of Persons Occupied Percent Occupied Percent Occupied Percent 1 person 176 947 25) B1) 64 217 13) 112,760 46 2 persons 220,487 144,205 76,282 313 3 persons 118,835 (16) 89,731 (19) 29,104 (12) 4 persons 114,607 (16) 99,799 (21) 14,808 (6) 5 persons 56,777 (8) 51,103 (11) 5,674 (2) 6 or more 33,761 (5) 29,676 (6) 4,085 (2) TOTAL 721,444 488,731 242,713 MEDIAN: 2.78 persons /Housing Unit . , In Chanhassen, Carver County, and the Region, renter households are mostly 1 and 2 persons while owner occupied units are mostly 3 or more persons. *Nousin Values and Rental Distributions 1980 Census Chanhassen's rental rates are mainly concentrated (81.5 %) within the medium ($200 -$399) range while only 7.8% of its rr�ntal housing in the low ($0 -$199) range. This is in contrast to Excelsior, arver County and the Region, all of which offer higher percentages of their rr :tal housing stock in the low range. Chanhassen Eden Prairie Excelsior No. ( %) No. ( %) No. ( %) $0 - 199 36 (7.8) 176 (18.4) 118 (17.2) $200 - $399 378 (81.5) 446 (46.6) 537 (78.3) $400 or more 28 6.0 299 (31.2 21 3.1 No Cash Rent 22 4.7; 37 (3.9; 10 1.53 Total 464 958 686 _ Median Rent $270 $333 $256 Carver County Region No. ( %) No. ( %) $0 - $199 871 (37.7) 76,085 (32.0) $200 - $399 1,224 (53.0) 144,684 (61.0) $400 or more 67 (2.9) 13,113 (5.5) No Cash Rent 148 (6.4) 4,681 2.0 Total 2,310 238,563 Median Rent $221 $238 Chanhassen's median house value is on a par with Eden Prairie, but roughly 33% higher than the median price for Excelsior, Carver County and the Region. While offering twice as much low priced housing (under $49,999) as Eden Prairie, Chanhassen offers much less than Excelsior, Carver County and the Region. Carver Chanhassen Eden Prairie Excelsior No. ( %) No. ( %) No, ( %) No. ( %) 0 - 49,999 99 (7.0) 10 (2.9) 91 (23.6) 50 - 79,999 522 (36.8) 1 X46 (33.0) 190 (49.4) 80 - 99,999 367 (25.9) 1.,249 (33.0) 45 (11.7) 100 - 149,999 296 (20.9) 974 (25.8) 34 (8.8) 150 - 199,999 84 (5.9) 142 (3.8) 16 (4.2) 200,000 or more 49 (3.5) 57 (1.5) 9 (2.3) Total (7 County) 1,417 3,778 385 Median $84,800 $88,500 $66,000 Carver SECTION IV: ELDERLY POPULATION When compared with Excelsior, Carver County or the Region, Chanhassen has a relatively low percentage of its population over the age of 65. County Region Total Percent No. ( %) No. ( %) 0 - 49,999 1,817 (28.6) 99,027 (24.4) 50 - 79,999 2,808 (44.2) 214,257 (52.9) 80 - 99,999 860 (13.5) 49,027 (12.17) 100 - 149,999 619 (9.7) 31,577 (7.8) 150 - 199,999 143 (2.3) 7,210 (1.8) 200,000 or more 102 (1.6) 4,175 (1.0) Total 265 6,349 111 405,375 37,046 Median Rent $64,500 56.9% $64,714 Region SECTION IV: ELDERLY POPULATION When compared with Excelsior, Carver County or the Region, Chanhassen has a relatively low percentage of its population over the age of 65. LS542A Total Total Percent Total Pop. Percent Pop. of Pop. Pop. Total 65 & of Pop. Female Female Male Pte._ Over Over 65 Over 65 Over 65 Over 65 Chanhassen 6,351 312 4.9% 175 56.0% 137 Eden Prairie 16,263 361 2.2% 195 54.0% 166 Excelsior 2,523 376 14.9% 265 70.4% 111 Carver County 37,046 3,296 8.9% 1,876 56.9% 1,417 Region 1,985,873 188,207 9.48% 117,958 62.6% 70,249 (7 County) LS542A planning area 4 citizen advisory committee 2353 government center, minneapolis,mn. 55487 April 26, 1983 Mr. Tom Hamilton; Mayor City of Chanhassen 690 Coulter Drive Chanhassen, MN 55317 Dear Mayor Hamilton: The Planning Area Citizen Advisory Committee at its April 19; 1983; meeting reviewed the City of Chanhassen's proposed program for use of Urban Hennepin County Community Development Block Grant funds and has found it consistent with the Urban Hennepin County Statement of Objectives for Year IX, with the following comments. In that implementation of the senior citizen housing site acquisition project is dependent upon the in process community housing survey, the Committee requests that it receive a status report on the survey and related site acquisition program by June 1; 1983. The Committee supports the use of CDBG grants to reserve sites for the development of r affordable housing, but only when there is a reasonable expectation that the project will be developed within three years. Although provided for in the CDBG program regulations and the Urban Hennepin County Statement of Objectives, it is the Committee's position that communities participating in the Urban Hennepin County CDBG program should discontinue their funding requests for general administration overhead and recover only those administrative costs resulting from the implementation of specific grant funded programs. The Committee wishes to thank the City for its cooperation in the i application review process. Sincerely_, \J Charles J. iiodge; Chairman CITY Of CHAIVHASSEN Planning Area .4 Citizen Advisory Committee RF7C-F 11 /F :D l w MAY :_; 21983 cc: PACAC 4 Members Scott Martin, City of Chanhassen COMMUNITY DEVELOPMENT DEPT Larry Blackstad F J ra` CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY ' t 690 COULTER DRIVE P.O. BOX 147 • CHANHASSEN. MINNESOTA 55317 U(612) 937 -1900 MEMORANDUM TO: Don Ashworth, City Manager - FROM Scott A. Martin, Executive Director DATE: May 2, 1983 SUBJ: City Council Appointment of Commissioner of HRA The term of HRA Commissioner Bill Gullickson expires on May 31, 1983. Therefore, the Mayor and City Council should consider the ` reappointment of Commissioner Gullickson or the appointment of a new commissioner to a five -year term at the next regular meeting of the City Council (May 16, 1983). The Minnesota Housing and Redevelopment Authority Act provides that commissioners to the HRA are to be appointed by the Mayor, with the approval of the City Council, for a term of five years. Mr. Gullickson is a charter member of the Chanhassen HRA, who was appointed on May 29, 1974. He has also served as HRA Chairman since 1979. Please let me know if you will require any additional information for presentation to the City Council. SAM :v cc: Bill Gullickson - iw Update - 5- 10 -83: Commissioner Gullickson called to state that business commitments have made it difficult for him to participate as he would like to and, accordingly,•would ask that his name not be considered for reappointment. Bill was advised to place his decision -in writing so that his decision could be formally reviewed by the HRA and City Council. _._ 3 kGng3eihutz- Drowns, rs 1g «tip° May 18, 1983 City of Chanhassen Housing and Redevelopment Authority Chanhassen, Minnesota 55317 Dear HRA Member: We are very interested in the orderly development of all of Chanhassen and our opinion is that the development of the Downtown Redevelopment plan is crucial to the healthy development of the City of Chanhassen. We are currently talking to a couple of developers who are capable of developing the project to the satisfaction of the HRA and the City of Chanhassen. We propose that in the event Klingelhutz- Cravens, Realtors were successful in producing a developer, who was satisfactory to the HRA, and subsequently a contract relationship could be reached between the developer and the HRA, that Klingelhutz- Cravens, Realtors be paid a fee by the HRA equal to 5% of all of the land and buildings purchased by the developer in downtown Chanhassen. We would be expending considerable time and effort in locating and consumating a contractual agreement between the HRA and the developer and feel that the benefits to the City would by far outweigh the costs involved. We are not proposing that our firm take an exclusive listing on the HRA properties, but we do feel that, in the event, we are able to produce a satisfactory developer to do the job, we should be compen- sated. Your consideration of this proposal would be greatly appreciated. Sincerely, KLINGELHUTZ - CRAVENS, R TORS " Al H. Klingelhutz &W�ee4_� E.W. Cravens 7811 GREAT PLAINS BLVD., P.O. BOX 427, CHANHASSEN, VIN 55317 • (612) 934 -0000