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CC Minutes 05-12-2014Chanhassen City Council – May 12, 2014 Kate Aanenson: Yeah well the subdivision design standards are in Chapter 18 and then the driveway location, some of that stuff is in Chapter 20 so we just wanted to reference both and so the two go together. Mayor Furlong: So we’re not changing the definition, we’re just referencing 18 and 20? Kate Aanenson: Correct. Mayor Furlong: In the references, thank you. Kate Aanenson: Correct. Mayor Furlong: Okay. If there are no other questions, any comments or concerns? Discussions. If not would somebody like to make a motion? Councilwoman Ernst: Sure I will Mr. Mayor. Mayor Furlong: Thank you Councilwoman Ernst is recognized. Councilwoman Ernst: I make a motion that City Council approve the ordinance amending Chapters 1, 18 and 20 of the Chanhassen City Code and approval of the attached summary ordinance for publication purposes. Mayor Furlong: Thank you. Any, is there a second? Councilman McDonald: Second. Mayor Furlong: Second. Is there any discussion? Councilwoman Ernst moved, Councilman McDonald seconded that the Chanhassen City Council approves the ordinance amending Chapters 1, 18 and 20 of the Chanhassen City Code; and approval of the attached summary ordinance for publication purposes. All voted in favor and the motion carried unanimously with a vote of 4 to 0. CONSIDER APPROVAL OF PURCHASE AGREEMENT FOR CITY PROPERTY, HALIFAX DEVELOPMENT, LLC. Mayor Furlong: Councilwoman Ernst is recognized quickly. Councilwoman Ernst: Yes Mr. Mayor I’d like to recuse myself. Mayor Furlong: Thank you. The rest of the council will go ahead and hear this item. Let’s start with a staff report please. Kate Aanenson: Sure, thank you Mayor, members of the City Council. As you indicated this is a purchase agreement between the City of Chanhassen and Halifax Development. Hans Kuhlman is representing Halifax Development out of Denver, Colorado. We’re been working on this purchase agreement or just discussing with the developer for almost 9 months at least so currently the City has nd retail, Chanhassen Retail 2 Addition. There’s 1.46 acres surrounding that excess right-of-way so the developer would like to put a restaurant pad on a portion of that which is right kind of behind the Perkins 8 Chanhassen City Council – May 12, 2014 site and adjacent to the Target so in order to accomplish this, because of the kind of the circuitous entrance into this property as shown on your site plan, the developer will be working also with Target. The reason for the purchase agreement now, there’s some things that need to be executed. We want to review the exiting of the property so that’s one of the conditions of the purchase agreement but the developer wanted to have control of the property first before he expended a lot of money on that. He has secured, was working for the purchase agreement and has terms with that with Target Corporation which makes it a nicer entrance into the site and actually works better than the original proposal so he will do that. Also will pay the City for, we’re doing a survey but then he’ll have to plat it too so for this project to go forward he will do kind of the monitor the traffic. Do a plat and then a site plan review so we are recommending approval with the $8.00 a square foot. Right now we believe the acreage that he needs is accommodated with a 30,000 square feet but it might fluctuate slightly but no matter what it would be we left it at the $8 a square foot so if it moves a little bit, but right now we’re estimating that, the price of that be about $240,000. Excuse me, yeah $240,000 so he is putting money down on that. Again we’ve shown you kind of the layout of that site plan in one of your attachments but again that’s kind of for illustrative purposes. Kind of showing you how that would lay out, the pad itself and this would be a kind of fast casual dining sit down. Would not be a drive thru. Mayor Furlong: Okay. Kate Aanenson: So with that I’d be happy to answer any questions that you may have. Mayor Furlong: Any questions for staff on this proposal? I think this is a, one of the issues that we’ve talked about over the years is trying to intensify available sites within the downtown area and use those sites that may be under utilized from before and I think this is one of those areas. And I know we’re just talking about the contract tonight but I assume as part of the development approval process there would be recognition of access. Cross access agreements likely as part of it and mutual parking arrangements and those types of things and yet still sufficient parking for the given uses within the. Kate Aanenson: Yeah, I think that’s what took some of the time to get this agreement put together. Actually working with Target Corporation and we had to go back and research to make sure that they had adequate parking, which they did. They had some excess so they were able to, and I think it makes a much better design for both parties so it is a public street coming in which is a little bit unique on the other end of Target. Their entrance but at this side it is a public street serving the 3 properties but once it, but it will cross into private but you’re right, we want to make sure there’s cross access agreements and proceeding through site plan and platting so we have reviewed all the fees with the developer so he understands our process and what the fees would be so I think we have a pretty clear expectation of what’s to happen next. Mayor Furlong: Okay. Good. Mr. Gerhardt with regard to the price and terms, were you involved in the negotiations of those? Todd Gerhardt: Yes. Mayor Furlong: And any concerns about them in terms of fairness to the City or the taxpayers? Todd Gerhardt: No. It’s market value and if you kind of look at the comparable, we put the proposed 2014 property tax statement for Taco Bell. Roughly about the same square footage. Same building square footage and so the price that they’re going to pay, subtracted out the building comes right in line. Mayor Furlong: Okay. Thank you. And Mr. Knutson, any concerns or issues with the terms of the purchase agreement from a legal standpoint? 9 Chanhassen City Council – May 12, 2014 Roger Knutson: None Mayor. Our office drafted the agreement. Mayor Furlong: Okay, so it must be right. Roger Knutson: I hope so. Yes, it is right. Mayor Furlong: I hope so? Roger Knutson: I stand corrected. It is absolutely perfect. Mayor Furlong: It is absolutely perfect, okay. Alright. More confidence with that. Thank you. Todd Gerhardt: Mayor, just one thing that this council and the public should know is that it’s contingent upon receiving site plan approval from the City Council and going through the typical planning process in front of the Planning Commission and then to you. Mayor Furlong: And public hearings as well will be part of that process. Kate Aanenson: Yes. Todd Gerhardt: So for any reason you know as we work into the details of the site plan and it doesn’t seem to fit on the site, you can still get out of the purchase agreement. Mayor Furlong: Okay. Todd Gerhardt: So there’s no obligation on this board to approve the purchase agreement and the site plan. Mayor Furlong: By approving the purchase agreement tonight that, as Ms. Aanenson said, that gives the developer confidence that they have control of the property but it’s still dependent upon the site plan approval for which the Planning Commission and the council will be involved in with the existing levels of discretion that are available there. Todd Gerhardt: That’s correct. Mayor Furlong: Yep. Todd Gerhardt: He’s going to spend a substantial amount of money in bringing it through the site plan approval process and for him to do that he wanted to insure that he could tie up the site. You know as Kate mentioned we had been working with him for 9 months and once he was able to secure some agreements with Target then we took it a little more seriously and worked on our side of the purchase agreement. Mayor Furlong: I know concepts have a specific term in the planning process and so I don’t want to get into that at all but as an idea or as a vision I think if the council had some hesitations going forward with this, now would be a time to bring them up but to me I think it makes a lot of sense. It’s a, you know again I’m not going to pre-judge and say that we’re approving any sort of site plan but I think in fairness to the developer I think it’s worthwhile to go through the process and it could be a nice addition to the city. Any other questions for staff or general comments about the? Mr. McDonald. 10 Chanhassen City Council – May 12, 2014 Councilman McDonald: I have a question. Mayor Furlong: Please. Councilman McDonald: I just want to clarify. Okay on the one drawing which is the property card I guess that shows all the property that the City owns kind of around the site and then we’ve got the site plan so what we’re going to do is subdivide our property and they’re only going to take over what they need for the property use and then the rest of it still is retained by the City? Kate Aanenson: That’s correct. Councilman McDonald: Okay. Kate Aanenson: So they would buy kind of from that southern part of the Perkins parking lot. That 30,000 square feet and combining it with the Target because really it pinches down there. Councilman McDonald: Yeah. Kate Aanenson: And so to get access from the road, that’s really kind of what the negotiation which let us, let the developer kind of start working with Target to really get a better design so. Councilman McDonald: Okay. Kate Aanenson: And they’re paying those survey costs so, we’re being reimbursed. Councilman McDonald: I’m fine, thank you. Mayor Furlong: Councilwoman Tjornhom, any thoughts or comments? Councilwoman Tjornhom: No I think you know as you stated mayor we’re still not quite sure what the whole concept is going to be or what will be there but I think it’s important that as a council we stay consistent with our planning and that we’d like to intensify our downtown area as much as we can and we certainly do know that restaurants is something that is always recommended by our residents. That they’re, not that we don’t have wonderful ones right now but always welcome new ones also so because I think it’s important that we support anybody that would like to come in and invest in our downtown. Mayor Furlong: Agreed. Good. Any other comments or questions? If not would somebody like to make a motion? Councilwoman Tjornhom: I’ll make a motion. Mayor Furlong: Councilwoman Tjornhom. Councilwoman Tjornhom: I make a motion that the City Council approves the Vacant Land Purchase Agreement between the City of Chanhassen and Halifax Development, LLC in the amount of approximately $240,000 or $8.00 per square foot for purchase of excess right-of-way associated with the Chanhassen Retail Second Addition. Mayor Furlong: Thank you. Is there a second? Councilman McDonald: Second. 11 Chanhassen City Council – May 12, 2014 Mayor Furlong: Motion’s been made and seconded. Any discussion on the motion? Hearing none we’ll proceed with the vote. Councilwoman Tjornhom moved, Councilman McDonald seconded that the City Council approves the Vacant Land Purchase Agreement between the City of Chanhassen and Halifax Development, LLC in the amount of approximately $240,000 or $8.00 per square foot for purchase of excess right-of-way associated with the Chanhassen Retail Second Addition.All voted in favor and the motion carried unanimously with a vote of 3 to 0. (Councilwoman Ernst rejoined the council for the remainder of the meeting.) COUNCIL PRESENTATIONS. Mayor Furlong: Any comments or presentations from members of the council? Mr. McDonald, would you like to make some comments about the Beyond the Yellow Ribbon breakfast this last weekend? Councilman McDonald: Yeah. We had our annual breakfast and again what we try to do is provide a send off to all of those high school students that are now going into the military. We invite their families. We try to get them acquainted with Beyond the Yellow Ribbon. The services that we could possibly provide and basically just an open invitation that if anything comes up, any kind of question, any kind of concern whatsoever, not to hesitate to contact us. We also pass out a few tokens of appreciation one of which is the Blue Star flag to the families to signify that they now have a son or daughter providing servicing to our country and other than that it’s just a good time to kind of meet people and ask questions and it’s something that we’ve been associated with in the city since the inception of Beyond the Yellow Ribbon and we’ll continue to do it so it was a good time. Thank you. Mayor Furlong: Absolutely. Just want to extend thanks and appreciation to the Beyond the Yellow Ribbon members committees that were actively involved with it and also the American Legion which donated the food. Provided the food. This year was a joint event between both Beyond the Yellow Ribbon Chanhassen and Beyond the Yellow Ribbon Eden Prairie group which Eden Prairie just received their designation last fall so a little bit broader reach and an event that I think is destined to grow every year so it was a good event. Thank you. Also wanted to just make a public comment for the record. It rd was in the Villager last week I think but at the Rotary Gala back on May 3 Michael Brindisi with the Chanhassen Dinner Theaters was recognized and received the Rotary Club’s Distinguished Service Award so congratulations to Mike for that honor as well. And then tomorrow afternoon at Camp Tanadoona they will be having a ribbon cutting for their capital improvements that they’re planning there. They’re doing a multi-million dollar improvements to their camp. That’s from 4:00 to 6:00 out at the Camp Tanadoona so I know everybody is welcomed to join if they’re interested in doing so. It’s nice to see the excitement and level of investment that the Campfire is putting into Camp Tanadoona here in Chanhassen so, that will be a fun event. Mr. Gerhardt, administrative presentations. ADMINISTRATIVE PRESENTATIONS. Todd Gerhardt: Just one item. We’re starting our fifth season of road construction season so anybody that is confused regarding the detour signs please go to our website and we have updates on there where closures are going to occur and how long they’re going to occur so everybody has the opportunity to go there to get clarification and if that’s not clear enough, don’t hesitate to call City Hall and myself or Paul Oehme would be more than happy to explain the closure process. Mayor Furlong: Very good, thank you. Any questions for Mr. Gerhardt or his staff? No? Okay. 12