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EDA 2018 04 23 CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING APRIL 23, 2018 Mayor Laufenburger called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Mayor Laufenburger, Councilwoman Tjornhom, Councilman McDonald, Councilwoman Ryan, and Councilman Campion STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Kate Aanenson, George Bender, Todd Hoffman, Jill Sinclair, and Roger Knutson Mayor Laufenburger: Please note that all 5 members of the Economic Development Authority are present this evening. We have two items on the agenda this evening. Is there any APPROVAL OF EDA MINUTES DATED SEPTEMBER 11, 2017. Councilman McDonald moved, Councilman Campion seconded to approve the Minutes of the Economic Development Authority meeting dated September 11, 2017 as presented. All voted in favor and the motion carried unanimously with a vote of 5 to 0. VENUE/ALDI PROPERTY: APPROVAL OF ASSENT TO REGISTRATION OF LAND. Todd Gerhardt: Yes. Mayor Laufenburger: Alright, staff report please. Todd Gerhardt: Mayor, council members. Assent to register of land is basically the City has Bloomberg Companies and Chanhassen Frontier LLC are requesting that those documents be removed from the line of title against that property. Staff, the city attorney have reviewed all of the assent items and agree that the agreement have lived out their life and all the conditions have been met so staff is recommending approval of the assent to register of the land for the Venue/Aldi property. Mayor Laufenburger: Okay, thank you Mr. Gerhardt. Is there any questions from council of staff on the request to approve the Assent to Registration of Land for the Venue/Aldi property? Can you just clarify something for us? This is the property formerly known as the Frontier Building, is that correct? Chanhassen Economic Development Authority April 23, 2018 Todd Gerhardt: That is correct Mayor. Mayor Laufenburger: And the previous owner was the Bloomberg Estate or Bloomberg Companies, is that correct? Todd Gerhardt: That is correct. Mayor Laufenburger: So what we are doing is, and there were some restrictions placed on that title, is that correct? Todd Gerhardt: Yes. Mayor Laufenburger: Okay. And have those restrictions in our view and the view of all the legal authorities, have those restrictions been fulfilled? Todd Gerhardt: Every one. essentially have title of this property and have it be a clean title, is that correct? Todd Gerhardt: That is correct. Mayor Laufenburger: Okay. So Mr. Knutson let me ask you this question as our legal counsel. Is this in the authority of the EDA to approve the Assent of this registration? Roger Knutson: Yes Mayor it is. Mayor Laufenburger: Okay, thank you. And we are, all we are doing is acting on the Assent of intended use of the property. This all relates to producing a clean title for United Properties, is that correct Mr. Knutson? Roger Knutson: That is correct. Mayor Laufenburger: Okay, alright. Is there any discussion on this? Is there anybody that would like to make a motion on this? Mayor Laufenburger: Alright, Mr. McDonald. Councilman McDonald: I would propose the Economic Development Authority/City Council approves the Assent to Registration of Land for the Venue/Aldi property. 2 Chanhassen Economic Development Authority April 23, 2018 Mayor Laufenburger: Okay and just to clarify. We were acting the Economic Development Authority. If this motion is seconded and passes then it will actually have further action by the City Council later this evening, is that correct Mr. Gerhardt and Mr. Knutson? Roger Knutson: That is correct. Mayor Laufenburger: Okay so the motion should read just the Economic Development Authority. You okay with that Mr. McDonald? Councilman McDonald: Okay. Mayor Laufenburger: Okay. We have a motion. Is there a second? Councilwoman Tjornhom: Second. Mayor Laufenburger: Alright, thank you Councilmember Tjornhom. Is there any discussion on this motion? Councilwoman Ryan: Mr. Mayor? Mayor Laufenburger: Councilmember Ryan. Councilwoman Ryan: this is a project that I have been opposed to from the beginning so I will not be able to support any elements associated with it. Mayor Laufenburger: Okay, so your opposition is to what? Councilwoman Ryan: I will be voting against it. Mayor Laufenburger: And so your opposition is against the motion to Assent, is that correct? Councilwoman Ryan: Yes. Mayor Laufenburger: Okay. Mr. Gerhard or Mr. Knutson, any further discussion? Anybody else? Could you just clarify, if this motion were to not pass does Bloomberg, or excuse me, does United Properties have any other course of action that they could take to get a clean title and remove those restrictions? Roger Knutson: Yes Mayor they do. 3 Chanhassen Economic Development Authority April 23, 2018 Mayor Laufenburger: And what is that? Roger Knutson: They would proceed with their court action and have a judge finally rule on this subject. Mayor Laufenburger: So a judge would then rule on the legality of removing the restrictions, is that correct? Mayor Laufenburger: Okay, and would there be any expense to the City to participate in that? Mayor Laufenburger: Okay. Any guess on how much that would be? Mayor Laufenburger: Okay, alright. Any other comments or discussion on this motion? Councilman McDonald moved, Councilwoman Tjornhom seconded that the Economic Development Authority approve the Assent to Registration of Land for the Venue/Aldi property. All voted in favor, except for Councilwoman Ryan and Councilman Campion who opposed, and the motion carried with a vote of 3 to 2. Councilman McDonald moved, Councilwoman Tjornhom seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The Economic Development Authority meeting was adjourned at 7:05 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 4