HRA 1985 04 18AGENDA
HOUSING AND REDEVELOPMENT AUTHORITY
THURSDAY, APRIL 18, 1985, 7:30 P.M.
CHANHASSEN MUNICIPAL BUILDING, 690 COULTER DRIVE
1. Call to order.
2. Approval of minutes.
3. Tax Increment Financing Plan.
4. Special Assessment Reduction Program, Discussion of Opus
Proposal.
5. Old Business.
6. New Business.
7. Approval of Bills.
— 8. Adjournment.
MINUTES
HOUSING AND REDEVELOPMENT AUTHORITY
SPECIAL JOINT MEETING WITH THE CITY COUNCIL
APRIL 4, 1985
CALL TO ORDER: Chairman Whitehill called the meeting to order at
7:30 p.m. Present were Commissioners Swenson, Horn, Bohn and
Whitehill. Commissioner Robbins was absent. Also present were:
Councilmembers Dale Geving, Carol Watson and Mayor Tom Hamilton.
Staff present were: City Manager Ashworth, City Planner Dacy and
Mary Vujovich from Grannis, Campbell, Farrell & Knutson.
-... ,jivui,u ana proposal of the sale of tk
old Instant Web building. He explained that Brauer and
- Associates were hired to review the subdivision and site plan
based on the city's ordinances in preparation for Planning
Commission and City Council review.
Whitehill moved, seconded by Bohn to adopt the purchase
agreements subject to 1) the site plan building and facia review
and approval; 2) submission of the construction loan agreement;
3) submission of financial statements. All voted in favor and
the motion carried.
ADJOURNMENT: RNMENT: Horn moved, seconded by Swenson to adjourn the
- meeting at 9:00 p.m. All voted in favor and the motion carried.
MINUTES
HOUSING AND REDEVELOPMENT AUTHORITY
JOINT MEETING WITH THE CITY COUNCIL
MARCH 21, 1985
CALL TO ORDER: Vice Chairman Horn called the meeting to order at
7:35 p.m. Present were: Commissioners Swenson, Horn, Robbins
and Bohn. Chairman Whitehill was absent. Also present were:
City Manager Ashworth, City Planner Dacy, Fred Hoisington of
Brauer and Associates, and Roger Knutson of Grannis, Campbell,
Farrell & Knutson.
MINUTES: Robbins moved, seconded by Horn to approve the minutes
of the February 21, 1985 meeting. All voted in favor and the
motion carried.
PRESENTATION OF THE FINDINGS OF FORUM TWO, BRAUER AND ASSOCIATES:
Fred Hoisington presented the findings of Public Forum 2. He
explained the alternate concept 1 was not approved because it
proposed no connection over the railroad or to Highway 5.
Altnernate concept 2, however, was approved as it connected West
79th Street with a north /south road to Highway 5 crossing over
the railroad. Hoisington related that the concept is intended to
create commercial development around West 78th Street with
regional and convenience commercial uses along the west side of
the north /south roadway. It is intended that development be done
in incremental steps. He also stated that there is a potential
for residential development, especially north of West 78th Street
in the downtown area. The next step in the downtown redevelop-
ment project is a developer's forum. It was originally scheduled
for April 11th. Hoisington presented a list of developers to
invite. The following names were added to this list: Marvin
Hartman, Ron Clark Construction, and Jim Boisclair Corporation.
Councilwoman Watson commented that the main street concept was
appropriate, however, was concerned about the viability of
another access onto Highway 5. Hoisington stated that in order
for that intersection to be created, the State would want the
elimination of one of the existing intersections. Commissioner
Swenson commented that the proposed concept was the closest to
the previous ring road concept. Commissioner Bohn felt that the
proposed concept was more logical, affected fewer business people
and would consider crossing the railroad tracks without con -
necting into Highway 5. Councilman Geving felt that the connec-
tion to Highway 5 may be unrealistic. He preferred and approved
of the maintenance of the existing road alignments. He suggested
_ that the old City Hall be moved to some location in downtown to
act as a landmark. Mayor Hamilton felt that the concept was a
realistic plan noting that the incremental phasing is important.
He also suggested looking into a road along the north side of the
railroad tracks for alternative access. Commissioner Horn recom-
mended that Hoisington prepare a series of alternatives including
what has been ruled out for presentation to the developers at the
next forum.
Motion by Bohn, seconded by Robbins to skip item 4 on the agenda
and move to item 5. All voted in favor and the motion carried.
MARCH 21, 1985
PAGE 2
DEVELOPMENT
FUNDS FOR YEAR IX
AND XI: Dacy aistributea a memo aatea Marcn Li, 1ytl5 regaraing
the Year IX and Year XI CDBG allocations. She stated that Larry
Blackstad from the Urban Hennepin County CDBG staff recommended
that the allocation for the Senior Citizen Center be allocated
under the Year XI program as other communities are using Year XI
funds for this purpose. Therefore, $56,215 would be earmarked
for land acquisition for the parcel adjacent to the Instant Web
building site. She stated that he also advised that most of the
Year XI funds be allocated toward land acquisition with the
remainder set aside for administrative purposes.
Motion by Robbins, seconded by Bohn to recommend to the City
Council that the CDBG allocations be expended as follows:
Year IX Reallocation:
Land Acquisition $56,215.
Year XI Allocation:
Land Acquisition $38,000.
Senior Citizen Center 200.
Administration 332.
All voted in favor and the motion carried.
Motion by Robbins, seconded by Bohn to go back to item 4. All
voted in favor and the motion carried.
AGREEMENTS OF THE SALE OF THE INSTANT WEB BUILDING:
Discussion of Agreements: Knutson presented the agreement
for the sale of the Instant Web building. He explained that Gary
Kirt of David C. Bell Investment Company did not want to issue a
letter of credit. In the alternative, Knutson stated that he has
received and reviewed Kirt's financial statements and feels
assured that the $150,000 mortgage can be guaranteed. The HRA
felt that the City Attorney should pursue the reception of a one
year term policy insurance statement from Kirt. Knutson also
related to the HRA that he was concerned about the City's
liability if the land to be acquired cannot be purchased by June
1st. The HRA determined that the City Manager and the Mayor re-
negotiate with the proposed building owners.
Motion by Horn, seconded by Bohn to approve the concepts as
related to the agreements as presented by the City Attorney. All
voted in favor and the motion carried.
Discussion of Design and Overall Site Plan: Hoisington pre-
sented the analysis of the submitted interior design and site
plan. Hoisington noted that his review was intended to assess
MARCH 21, 1985
PAGE 3
the overall functional adequacy of the site plan and its con-
sistency with the evolving central business district plans.
He advised the HRA that the bowling center that was originally
intended to be located on the southeast portion of the building
is now being negotiated to be located on the southwest portion of
7 the building. This change in interior design will affect the
parking layout and site design. He also noted that a restaurant
was proposed to be located in Kirt's section in the northeast
portion of the building. This poses concerns regarding adequate
parking spaces in the immediate area. He noted that the sub-
division and site plan has to be reviewed by the Planning
Commission and the City Council and a more detailed plan will be
r presented at those meetings.
_Discussion of Acquisition of Bloomberg Property: Ashworth
advised the HRA that in order for Community Development Block
l Grant funds to be used to acquire the necessary acreage from Mr.
Bloomberg, an Environmental Assessment Worksheet has to be
completed. He stated that the Planning staff is now working on
that document. Also needed is the hiring of a process manager to
insure that all HUD regulations are being met regarding the
acquisition of the property. Two firms were contacted: Dan
Wilson and Von Klug and Associates. Ashworth stated that Wilson
has contacted him and Ashworth recommended the hiring of Mr.
Wilson in order to begin the process.
Swenson moved, seconded by Bohn, to approve the hiring of Dan
Wilson to act as the City's Process Manager in acquiring the land
with Community Development Block Grant Funds. All voted in favor
and the motion carried.
_Existing Tenant Update: Ashworth explained that several let-
- ters have been sent out not only to the vehicle owners in the mid
to rear portion of the building, but also to the individual
tenants. He stated that in some situations and alternate payment
schedule has had to be negotiated with tenants who were more than
I sixty days in arrears. Specific arrangements with Quali -Tech and
Gedney have been made to allow the continuation of their storage
until April 31st.
APPROVAL OF BILLS: Motion by Swenson, seconded by Bohn to
approve the bills as presented. All voted in favor and the
motion carried.
ADJOURNMENT: Bohn moved, seconded by Swenson to adjourn the
meeting at 10:24 p.m. All voted in favor and the motion carried.
ass,.,
s
F
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN. MINNESOTA 55317
(6 1 2) 937-1900
MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Barbara Dacy, City Planner
DATE: April 12, 1985
SUBJ: Tax Increment Financing Plan
At the last meeting, the City Manager distributed copies of the
Tax Increment Financing Plan dated March, 1985. Although no
action is proposed, review and discussion of the financing plan
must occur in preparation for amending the 1985 budget, which was
also impacted by the sale of the Instant Web building. Please
bring the copy of the plan with you to the meeting. Please feel
free to call me if you need another copy.
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317.
(612) 937 -1900
MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Don Ashworth, Excecutive Director
DATE: April 15, 1985
SUBJ: Special Assessment Reduction Agreement, Chanhassen Lakes
Business Park, Opus Corporation
Opus Corporation finds that the lots in the northwest section of
the business park cannot be used as originally thought because of
soil conditions. The best solution to maximize usage of lots
having good soils will require replatting and a new cul -de -sac
street /utility improvements (see attached memorandum from the
City Planner).
Opus is basically asking two questions:
1). Chanhassen City Council: Will the City Council consider
a resubdivision of the poor soiled lots and authorize
the new road /utility improvements as a public improvement
project to be assessed back to those benefitted lots ?;
and
2). HRA: Will the Housing and Redevelopment Authority
reconsider its special assessment reduction program
recognizing that the lots being corrected will have spe-
cial assessments much higher than typically found in
surrounding communities and other lots in the business
park?
The latter question posed by Opus is a difficult one. The HRA
operating budget has been strapped for the past two years and is
just now starting to show strength. I am anticipating a reluc-
tance to place additional committments against current resources
until such time as additional strength has been achieved. On the
other side of the coin is the reality that the program was ini-
tially established to provide a competive edge for Chanhassen in
attracting new businesses into our community. The program has
-- worked successfully and was probably the most influencing factor
in Fluoroware, Empak, DayCo, etc. construction decisions. It
should be noted that the recently approved Redmond Products site
Housing and Redevelopment Authority
April 15, 1985
Page 2
plan was originally intended for Lot 1, Block 4 of the Business
Park. Due to soil constraints, location of the Redmond facility
were not feasible. It was fortunate that the alternative site on
the north side of Highway 5 next to Lyman Lumber was found.) The
typical payback period for businesses receiving special
assessment incentives has been 'approximately l)i years, i.e. it
takes approximately li years for the average business taxes in
the business park to repay the special assessments that were
taken over by the HRA. To change from an incentive of 7% of the
market value to 108 - 128, would increase the payback period to
between two and three years. To insure that the percent of
reduction did not provide a precedent for other 'lots or other
future decisions, staff would recommend that a two tier schedule
be established wherein the percent would remain at the 78 level
if total assessments for a property were less than $30,000 per
acre and would be 108 to 128 if the assessments exceeded $30,000
per acre.
No action is proposed on either items l or 2, above. The item is
being presented solely for discussion with the developers then
being notified as to City Council and HRA thoughts.
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
MEMORANDUM
_ TO: Mayor and City Council
FROM: Barbara Dacy, City Planner
DATE: April 12, 1985
SUBJ: Proposed Replat of Lots, Chanhassen Lakes Business Park
Attached is the plat of Chanhassen Lakes Business Park indicating
the areas to be replatted or lots consolidated. Opus has deter-
mined that very poor soil and slope conditions are hampering the
marketability of these lots.
L-ts 1 and 2, Block 4 are intended to be consolidated and sold as
one lot. Lots 4 and 5, Block 2 are intended to be replatted by
shifting the existing north -south lot line to an east -west divi-
sion. Lots 2 -10, Block 1 are intended to be replatted by the
creation of a cul -de -sac into the interior of these lots.
Opus has made application on the replat of Lots 4 and 5, Blcok 2
and it is scheduled for Planning Commission review on April 24,
1985 and Council review on May 6, 1985. Planning staff's initial
review of this request is favorable and we would be recommending
approval (subject to any necessary conditions).
Proposed for Lots 2 -10, Block 1 is the creation of a cul -de -sac and
the reorientation of lots toward that street (Lots 2 and 3 con-
; tain the poorest soil conditions) . By replatting, lot dimensions
` can be adjusted to work around the soil limitations. Creation of
the cul -de -sac will also reorient access from four existing lots
onto Audobon Road (a collector) toward the cul -de -sac (a minor
street). Upon submission of preliminary plat details, staff can
be more analytical; however, the proposed concept in this part of
the park appears to be a good solution to the problem.
Attachments
1. Opus replat areas
2. Letter from Michelle Foster, Opus Corp., dated March 18, 1985.
3. Proposed Replat of Lots 2 -10, Block 1
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v OPUS CORPORATION
® DESIGNERS • BUILDERS • DEVELOPERS
March 18, 1985
Mr. Donald Ashworth
City of Chanhassen
690 Coulter Drive
P.O. Box 147
Chanhassen, Minnesota 55317
Dear Mr. Ashworth:
As we have discussed in our previous meetings, Opus Corporation on behalf of Alscor
Investors Joint Venture,requests additional special assessment reduction assistance
in the Chanhassen Lakes Business Park. We have recently completed a marketing and
development plan for each of the platted lots in the Park. The results of that
process have indicated more limited development potential than originally anticipated
on several of the lots due to soil and slope conditions, and the need for additional
street and utility improvements in order to complete development.
I have previously forwarded to you our analysis of the existing and future special
assessment situation for each lot assuming maximum development. This analysis showed
that an increase in the special assessment reduction percentage to somewhere in the
10% to 12% range could be warranted, perhaps at the higher end given the relatively
optimistic construction values which were used.
It is our mutual objective to see that quality development occur in the Park as
quickly as possible. We feel our current marketing efforts will move us in that
direction. The additional commitment from the City will help the Park retain its
competitive position in the marketplace.
Thank you for your cooperation to date and consideration of our request.
Sincerely,
Michele Foster
Assistant Director
Real Estate Development
MF /ms
1AAR 2 0 1985
CITY OF CHANHASSEN
MINNEAPOLIS • CHICAGO • PHOENIX • MILWAUKEE
EXECUTIVE OFFICES: 800 OPUS CENTER • 9900 BREN ROAD EAST • P.O. BOX 150 • MINNEAPOLIS. MINNESOTA 55440 (612) 936 -4444
CHANHASSEN H.R.A.
A C C O U N T S P A Y A
B L E 04 -15 -85 PAGE 1
CHECK 0 A
M O U N T
C L A I M A N T
P U R P 0 S E
024884
15,265.79
BRAUER 6 ASSOCIATES
FEES, SERVICE
i
024885
16.50
CITY OF CHANHASSEN
UTILITIES
024886
10.00
//J�
DIV OF BOILER INSPECTION REP. ♦ MAINT.,BLDG + GND"'� t47u(MAc_ F2�tp,
024887
360.00
FREEBERG COMPANY
FEES, SERVICE
i
024888
1,860.00
GRANNIS, CAMPBELL,
FEES, SERVICE
024889
26.95
SW SUBURBAN PUBLISHING
PRINTING AND PUBLISHING
// � Iv //////��//j�//��' /gw�(�y�p
— L16� Ab s — L bg6l IPZ:TK A)
6
17,539.24
CHECKS WRITTEN
TOTAL OF
6 CHECKS
TOTAL 17,539.24
6,744.23
Public - Private Ventures
..._ dpi{ r (
Bill To:
its. Barbara Dacy
City Planner
Chanhassen HRA
690 Coulter Drive
P.J. Box 147
Chanhassen, NIN 55317
I' "'')ICE
Dat
Invoice No: 19ts5135
P H, Jop Ho: 815 -08
Conti nUi n i Planning
Services
Terms: DUE UPON
For professional services including:
1. Base map preparation
2. Collection and analysis of data and plans for
transportation systemns
3. 'I'eeting with staff
4. ieetings with local businessr;ipn and developers
5. Preparation of preliminary eonc;.pt plan
6. Review of preliminary concept with H.R.A.
FEE: $15,700.00 + Expenses
per contract dated 1/1:;/'5
Fees:
Work completed to date - - - - - - - - - - - - - - - - - - - - - - v 3,:00.01.)
Work previously billed - - - - - - - - - - - - - - - - - - - - - - -799.01'
TOTAL FEES S 7,910.UO
Expenses:
Rase map preparation /;rints /pros!o boards - - - -
1;'x5.92
Envelopes for foru i ;5iai l ing - - - - - - - - - - - - - - - - - )7.4 %t
Hileaye-------------------------------------
Photocopies ---- --- --- ----- -- ------- ---- - - - -- _1.30
TOTAL EXPENSES 5 ` LU0. /(.
TOTAL 11/2b/8b BILLING 5
Bill To:
Ms. 3arbara Dacy
City Planner
Chanhassen HRA
r 690 Coulter Drive
P.O. Hox 147
Chanhassen, PAN 55317
r
f
INVOICE
Date:
Invoice No
3/25/85
1935157
3 &A Job No: 85 -20
Continuing Services
Terms: DUE UPON REM PT
For professional services in review of Instant Web
Building Proposal including-
* Review of proposed Web site and building development
• Review of traffic and parking needs
• Informal meetings with City staff
* Attendance at February 21st HRA meeting
Fees:
Senior Professional --
14.25
hrs.
@
60.00
hr.
$ 855.00
Professional IV - - - - --
3.50
hrs.
@
55.00
hr.
192.50
Professional III - - - --
3.00
hrs.
@
45.00
hr.
135.00
Professional II - - - - --
6.50
hrs.
@
40.00
hr.
260.00
Senior Tech ---- - - - - --
0.50
hrs.
@
28.00
hr.
14.00
TOTAL FEES
51,456.50
Expenses:
Mileage------ ----- ------
--------
---
-- - ---
- --
$ 3.00
Photocopies -- -- --------
------
----
---
-- --
- ---
.90
TOTAL ''EXPENSES
$ 3.90
TOTAL 3/25/85 BILLING
$1,460.40
Bill To:
Ns. Barbara Dacy
City Planner
Chanhassen NRA
690 Coulter Drive
P.O. Box 147
Chanhassen, MN 55317
Terms: DUE UPON RECEIPT
INVOICE
Date:
Invoice No:
3/25/85
1985159
BAA Job No: 85 -08
Continuing Planning
Services
For professional services including:
* preparation of Forum 2 materials
* review meeting with City staff
* Continued meetings with local developers and
businessmen
* organization, attendance, and presentation at
Forum 2
* attendance and presentation of Forum 2 results
at February 21 NRA meeting
FEE: a15,100.00 + Expenses
per contract dated 1/18/85
Fees:
Work completed to date ----------------------
Work previously billed ---------------- - - - - --
TOTAL FEES
Expenses:
Foam core boards /prints --------------- - - - - --
Film----------------------------------------
Cards /letters for forum ---------------------
Mileage
Postage -------------------------------------
Photocopies /photos ---------------- ---- ------
TOTAL EXPENSES
$ 14,150.00
- 8,600.00
$ 5,550.00
$ 24.25
3.70
62..35
13.31
.:56
49.92
$ 154,69
TOTAL 3/25/85 BILLING $ 5,704.69
Qhanhassen HRA
%Scott A. Martin
Executive Director
_ P.O. Box 147
Chanhassen, MN 55317 , ' 0� '
Professional services rendered in re:
I
F
02/05/85
RNK
Meeting re: Instant Web Building.
4.00
320.00
02/06/85
GGF
Conference re: sale of property to
.40
28.00
-
David Bell Company.
02/06/85
RNK
Preparation of memorandum of understanding;
4.00
320.00
analysis of problem.
02/07/85
RNK
Office conference re: Instant Web.
.70
56.00
02/08/85
VG2
Telephone calls from Don Ashworth re:
.70
56.00
termination of leases.
02/13/85
GGF
Instant Web Building - conference with
2.70
189.00
-
Don Ashworth re: terms of sale of building
and changes to proposed contract; begin
redraft of contract.
02/14/85
GGF
Instant Web Building - redraft of memorandum
3.70
259.00
of basic terms for sale of property to Bell;
telephone conference with Ashworth; forward
redraft to Ashworth.
02/15/85
GGF
Instant Web Building - conference with
.60
42.00
Don Ashworth re: changes to memorandum.
02/19/85
GGF
Instant Web Building - conference with City
3.90
273.00
Manager; attend meeting with Gary Kirt,
Don Ashworth, and Mayor Hamilton.
02/20/85
GGF
Instant Web - conference with terms of
.80
56.00
purchase by David C. Bell.
02/20/85
RNK
Telephone call re: Instant Web.
.40
32.00
02/21/85
RNK
Draft outline of sale of Instant Web Building.
1.00
80.00
02/21/85
RNK
Telephone call from Don re: Instant Web.
.30
24.00
02/21/85
RNK
HRA meeting.
125.00
Subtotal for fees only:
$1,860.00
TOTAL DUE:
$1,860.00
I
F