HRA 1982 03 18
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AGENDA
REGULAR MEETING
Chanhassen Housing and Redevelopment Authority
Thursday, March 18, 1982
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 February 18, 1982 Meeting.
3. Adoption of Special Assessment Reduction Program
for Park Two and Chanhassen Lakes Business Park
Lands.
4. Presentation of Traffic Analysis Report for
Redevelopment Project Area.
5. Resolution 82-2: Approving Joint Powers Agreement
with City for HRA Accounting Services.
6. Authorize Funding for Landscape Improvements Around
Base of City Directional Sign at Highway 5 and Great
Plains Blvd.
7. Approval of Bills.
8. Old Business.
9. New Business.
10. Adjournment.
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MINUTES
CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
Special Joint Meeting with Chanhassen City Council
February 18, 1982
2..
Call to Order
Chairman Gullickson called the meeting to order at 7:30 p.m.
Present were Commissioner's Gullickson, Bohn, and Horn. Russell
arrived at 7:40 p.m. Absent was Commissioner Whitehill.
Mayor Hamilton and Councilperson Swenson were also present.
Executive Director Martin, City Manager Ashworth, and Attorney's
Larson and Mertz were also in attendance. Carol Watson, Planning
Commission representative was also present.
Approval of Minutes
Bohn moved, seconded by Horn, to approve the minutes of the December
3rd and December 17th, 1981 meetings as presented. All voted in
favor and the motion carried.
Downtown Project Status Report
Bill McRostie of Bloomberg Companies and Dennis Spalla of Kraus-
Anderson Development Corp. presented an update of the current status
of their respective downtown redevelopment plans.
Dennis Spalla stated that it is unlikely that Kraus-Anderson will
construct any improvements in the Downtown area within the next year,
and it is even more unlikely that any financial commitments will be
made by Kraus-Anderson prior to the expiration date of May 27, 1982
for their development agreement with the HRA. Spalla cited the
current high interest rates, the poor national economy, and the lack
of any prime tenant for the project as being the primary reasons
for the delay in proceeding with their portion of the overall downtown
project.
Bill McRostie echoed the comments of Spalla, and added that alternative
plans should be considered during the next several months in order to
keep the general plan concepts alive.
Spalla also felt that alternatives to the adopted plan should be
considered which provide for phasing and downsizing of the project.
He added that Kraus-Anderson will probably not ask for an extension
of the existing development agreement prior to its expiration date.
Chairman Gullickson felt that the current national economic situation
is not permanent and that the City should not abandon the Downtown
Project at this time due to temporary economic problems. He'suggested
that the project be temporarily "shelved" until the economy improves
and the project is once again economi9ally feasible.
Mayor Hamilton agreed that the project should be shelved until the
economy improves, but added that he still supports the overall
Downtown Plan and wants to see redevelopment of downtown and general
growth in Chanhassen. He also suggested that alternatives to the
current plan be considered, and pointed out the fact that the
developer agreements remain in effect until the end of May, 1982.
MINUTES
CHANHASSEN HOUSING
February 18, 1982
Page 2
AND REDEVELOPMENT AUTHORITY
McRostie suggested constructing the project in several phases, while
still retaining the overall adopted plan as the ultimate goal for
downtown.
Hamilton stated that new proposals for downtown cannot be considered
until after expiration of the two developer's agreements, but
following their expiration, the Council and HRA would be likely to
consider such proposals.
Gullickson asked the Developers to begin looking at plan alternatives
during the next few months if still interested in working with the HRA
in, the future.
Commissioner Horn stated that the HRA is prepared to proceed with the
Downtown Project once it becomes feasible for all parties.
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Councilperson Swenson felt that the City should not be willing to
accept less than what the adopted downtown redevelopment plan calls
for, in terms of the design and extent of public and private improve- I
ments, simply because of a temporary delay in the project's construction
schedule.
Special Assessment Reduction Program
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Scott Martin presented an historical overview of past HRA discussions
concerning the proposed Special Assessment Reduction Program for
Chanhassen Lakes Business Park and Park Two. He noted that the
Commissioners had originally agreed to the program's concepts nearly
two years ago, but that various legal issues delayed final consideration I
since that time:
Don Ashworth added that special assessments within the project area
were greater than normal compared to similar developments, primarily
because the full cost of trunk sewer and water mains and a new well
hous~ was included in the overall project. He also pointed out the
fact that design standards applied to the project's public improvements
were greater than normal, in keeping with the goals and objectives of
the adopted Redevelopment Project Plan.
Ed Dunn, Business Park Developer, advised the HRA that he has sold his
development interests to Rauenhorst Corp., but that he still urges
adoption of the special assessment reduction program in order to spur
the growth and development of Chanhassen. He felt that the program is
more critical than ever to the future of the City in light of recent
downtown project setbacks.
Commissioner Russell stated that he supports the program as a positive
step towards quality development and the addition of new jobs in the
City.
The Commissioners all agreed that the program should provide the HRA
with the option of assuming special assessment installment payments
as a means of repaying special assessments in order to reduce the
potential of cash flow problems in the future. The attorney was
instructed to revise the programs' legal documents accordingly.
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MINUTES
CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
February 18, 1982
Page 3
Gullickson requested more specific input from Rauenhorst Corp. before
final adoption of the proposed program, and noted the support of the
program from Rauenhorst in a letter from Robert Worthington, Rauenhorst's
Director of Planning and Governmental Affairs (dated February 18, 1982).
Jerome Carlson, developer of Park Two and representative of United
Mailing, Inc., urged the HRA to reach a decision immediately to
establish the program so that he can decide whether or not to construct
a new United Mailing, .Inc. facility in Park Two under the special
assessment reduct~on program.
The Commissioners reviewed the proposed site development plan for
United Mailing, but explained. that final action on establishment
of the program could not occur prior to the March 18th meeting.
The Commissioners agreed that the program should be established in
order to induce development and the creation of new jobs in the Business
Park and Park Two, but felt that modifications to program legal documents
should be completed prior to final action.
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Russell moved, seconded by Bohn, to instruct the attorney and staff
to finalize, with modifications, all necessary legal documents for
establishment of the Business Park/Park Two Special Assessment Reduction
Program for final review and adoption at the March 18th HRA meeting.
Hamilton suggested that revisions to the documents distributed in the
packet desired by any HRA or Council membe~ be passed on to the
Attorney's office within the next week.
Swenson said that she supports the program as long as it can be
adequately funded by the HRA.
Bohn and Horn also expressed their general support for the program.
Jay Bennett, attorney representing Fluoroware, Inc. stated that the
BR~'s promise of the so-called 7% development incentive program
retroactively for Fluoroware was the principle reason why Fluoroware
decided to build their plant in Chanhassen rather than in some other
City.
Following the above discussion, all voted in favor of the motion,
and the motion carried.
Huber Property Acquisition (Parcel #26)
Martin and Larson presented a brief update on the status of acquisition
negotiations with the owner of Parcel #26.
Horn moved, seconded by Russell, to order the attorney to immediately
suspend negotiations for acquisition of Parcel #26 until such time as
the timetable for construction of the Downtown Redevelopment Project
is better defined and the BRA orders acquisitions to proceed. All
voted in favor and the motion carried.
MINUTES
CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
February 18, 1982
Page 4
HRA Policy: Improvements to Existing Businesses within Downtown
Core Area
Martin suggested that the HRA establish a policy concerning whether
or not private improvements should be permitted to existing businesses
within the Downtown Core Area in light of the recent delay in the
downtown redevelopment construction timetable. He recommended that
such a policy permit improvements to existing businesses to the extent
permitted by the City Zoning Ordinance.
Gullickson asked the Attorney if private improvements can legally be
permitted during the period remaining in the development agreements
for Downtown. '
Larson responded that there was currently no building moratorium in
effect in the Project Area, so improvements could not be stopped by
the City by denial of a building permit.
Gullickson felt that private improvement plans which are consistent
with the adopted Downtown Plan should be considered favorably by the
City.
Russell asked if the City could establish a "limited moratorium"
designed to prohibit only certain types of improvements. Larson
said that this concept would require additional study before a firm
opinion could be rendered.
Horn moved, seconded by Bohn, to establish a formalHRA policy permit-
ting private improvements to existing downtown core area businesses
(buildings) to the extent permitted by the City Zoning Ordinance, as
recommended by the Executive Director. This policy is subject to
change based on a definitive downtown project construction timetable
in the future. All voted in favor and the motion carried.
Community Development Block Grant Program
Martin presented an overview of the City's participation in the Urban
Hennepin County Community Development Block Grant Program (CDBG), and
introduced Larry Blackstad, Hennepin County's staff representative
to Chanhassen.
Mr. Blackstad presented an overview of the CDBG program in terms of
eligible activities, program requirements, and use of CDBG funds by
other participating cities in Hennepin County. He also discussed the
current status of federal housing programs and housing program
options available to Chanhassen during the next few years.
Gullickson suggested returning the grant funds to the Federal
Government rather than spending the money locally. Blackstad
explained that all funds not used by the City would have to be
returned to Hennepin County for reallocation to other cities within
the same planning area as Chanhassen. No funds would be returned
to the Federal government.
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MINUTES
CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
February 18, 1982
Page 5
Gullickson then suggested using a portion of the CDBG monies to
fund a housing needs assessment, as recommended by the Executive
Director, in order to determine the actual need for new senior
citizen housing in Chanhassen. He felt that such a study could be
beneficial to the City in attracting a private housing developer to
the City for future construction of senior housing. He added that
any remaining funds should be placed in reserve for future senior
citizen housing site acquisi'tion or housing rehabilitation grants
for low and moderate income homeowners.
Blackstad pointed out that several cities are using housing need
assessments as planning and marketing tools to attract private
housing developers to their communities.
Horn felt that the housing market study should be done by a private
developer, not by the HRA, since most developers would be likely
to conduct their own study in any case.
Gullickson added that he didn't want the HRA operating a housing
rehabilitation grant program, but that he wouldn't be concerned
if the City did.
Russell moved, seconded by Horn, to recommend that CDBG monies be
utilized for the study and promotion of senior citizen housing if
the City Council wishes to have these funds administered by the
HRA. All voted in favor and the motion carried.
HRA Accounting System
Horn moved, seconded by Bohn, to direct the attorney to prepare a
joint powers agreement between the City and HRA which formally
establishes a joint HRA accounting system with the City utilizing
the services of the City Treasurer to handle all HRA funds. All
voted in favor and the motion carried.
Resolution #82-1 Confirming Past HRA Expenditures
Russell moved, seconded by Bohn, to adopt HRA Resolution #82-1
approving past disbursements/expenditures of all tax increment
revenues received by the HRA since establishment of Tax Increment
District No.1. Voting in favor of the motion were Russell, Bohn,
Horn, and Gullickson. No one voted against the motion. Whitehill
was absent. The motion carried and the resolution was adopted.
Approval of Bills
Horn moved, seconded by Russell, to approve the bills for the months
of December, 1981 and January, 1982 as presented. All voted in favor
and the motion carried.
Adjournment
Horn moved, seconded by Russell, to adjourn the meeting at 11:10 p.m.
All voted in favor and the motion carried.
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CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE' P.O. BOX 147' CHANHASSEN. MINNESOTA 55317
(612) 937- 1 900
TO: Chanhassen ERA
FROM: Scott A. Martin,
DATE: March 9, 1982
RE: Traffic Analysis
Area
Executive Director ~~
Report for Downtown Redevelopment Project
Enclosed for your review is the final draft of the "Traffic Analysis
Report for the Downtown Redevelopment Project Area" prepared by
BRW, Inc. (dated March, 1982).
This report was authorized by the ERA on May 21, 1981. It was
originally intended that the report be in the form of an environmental
assessment study, but BRW and staff concluded that an environmental
study of the type originally envisioned was unnecessary due to the
scope of the project. Consesuently, the focus of the study was
revised to more fully address the issue of existing and future
traffic problems associated with the redevelopment project.
More specifically, the purpose of this study is to determine potential
traffic related impacts of the proposed development within the
Redevelopment Project Area. The traffic analysis identifies roadway
improvements which will be needed to provide a satisfactory level
of service for site and non-site oriented traffic for 1985, and
discusses further improvements which will be needed by the year 2000.
As you can see, the report makes some far-reaching conclusions
concerning future necessary roadway system improvements.
David Warner, chief author of the report, will present a summary of
the report and be available to answer your questions at the March
18, 1982 meeting.
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Rev. 3/10/82
. .
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Dated:
Motion by Councilmember
Resolution No.
Seconded by Councilmember
RESOLUTION APPROVING ASSESSMENT
REDUCTION PROGRAM FOR DOWNTOWN
REDEVELOPMENT PROJECT
WHEREAS, the City Council has approved the plan of
the Chanhassen Housing and Redevelopment Authority for the
Chanhassen Downtown Redevelopment Project (hereinafter the
"Plan") ;
WHEREAS, said Plan contemplated that the Authority
would pay a portion of the costs incurred by the City in
connection with the installation of public improvements south
of State Highway No.5 in the Chanhassen Lakes Business Park
area; and
WHEREAS, the Authority has transmitted to the City
a copy of the Authority's Resolution No. dated
, 19 , adopting Modification No. 5
to the Chanhassen Downtown Redevelopment Plan; and
WHEREAS, by said resolution the Authority has imple-
mented a program whereby the City would be reimbursed for certain
assessments imposed pursuant to Chapter 429 of Minnesota Statutes;
NOW, THEREFORE, BE IT RESOLVED, by the Chanhassen City
Council as follows:
1. Modification No.5 to the Downtown Redevelopment Plan
as described in the Authority's Resolution No.
dated , 19 , (a copy of which is
attached hereto as Exhibit A) is hereby approved.
2. The City Council hereby finds that the approval of
said Modification No. 5 would not have the effect of substantially
altering, or affecting the general land uses established in the
Chanhassen Downtown Redevelopment Plan and Project.
3. The City Council hereby finds that but for the approval
of said Mcdification No. 5 and the assessment reduction program
described in said Modification No.5 the land described in
Modification No. 5 will continue to be stagnant, underutilized,
and unproductive.
l\.C:V. J/J.U/CJL.
Mayor
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4. The City Council hereby finds that the entire
Chanhassen Downtown Redevelopment Project will not be feasible
unless the assessment reduction program described in Modification
No. 5 is established and implemented.
5. The City Council hereby finds that the costs of
implementing the assessment reduction program described in
Modification No.5 (a) are expenditures necessary to carry out
the purposes of the Minnesota Housing and Redevelopment Act,
(b) are expenditures necessary to prepare the assessment reduction
program area described in Modification No. 5 for private develop-
ment and improvement and (c) are a proper part of the public
redevelopment cost of the Chanhassen Downtown Redevelopment Project.
Attest:
City Clerk/Manager
Yes
No
Absent
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EXHIBIT A
(Copy of HRA Resolution Adopting
Modification No.5)
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)
"
ASSESSMENT AGREEMENT
THIS AGREEMENT, made on or as of the day of
, 19 , 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
(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 plan for the Project; and
WHEREAS, the Agency requested the County of Carver
(the "County") to certify the current assessed value of the
real property within the Project Area pursuant to Section 462.585
of the Act thereby establishing the Project as a tax increment
financing district; and
WHEREAS, the major objectives of the Redevelopment
Plan are to: acquire for rehabilitation econom~cally or
functionally obsolete or underutilized buildings and land;
provide a redevelopment site of a character that will encourage
future development of the area and improve sources of public
revenue; elimiate blighting influences which impede potential
development within the aforementioned redevelopment project;
provide maximum opportunity for redevelopment by private enterprise,
consistent with the needs of the City as a whole; encourage
private rehabilitation of structures within the redevelopment
project; and
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_ WHEREAS, in order to achieve the objectives of the
Redevelopment Plan and particularly to make the land in the
Project Area available for redevelopment by private enterprise
for and in accordance with the uses specified in the Redevelop-
ment Plan, the Agency has determined to provide substantial
aid and assistance to the Project through the sale of bonds to
finance the public costs of the redevelopment of the Project
Area; and
WHEREAS, the Agency believes that the redevelopment
of a portion of the Project Area pursuant to this Agreement, and
fulfillment generally of the Agreement, are in the vital and
best interests of the City and the health, safety, morals, and
welfare of its residents, and in accord with the public purposes
and provisions of the applicable state and local laws and
requirements under which the Project has been undertaken and is
being assisted; and
WHEREAS, the Agency has concluded agreements for the
redevelopment of the various properties to be acquired in further-
ance 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
improvements 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, 5273.76, Subd. 8, and 5462.445, 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 5273.76, Subd.
of Minnesota Statutes, has executed a Certification By Assessor
as to the Redevelopment Property and the Minumum 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:
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1\e v. J 11 0/ 8 2
.,
NOW, THEREFORE, in consideration of the premises and
the mutual obligations of the parties hereto, each of them
does hereby covenant and agree with the other as follows:
ARTICLE I.
DEFINITIONS.
Section 1.1 Definitions. In this Agreement, unless a different
meaning clearly appears from the context:
"Act" means the Municipal Housing and Redevelopment
Act, Minnesota Statutes, Sections 462.411 et seq., as amended.
"Agency" means the Housing and Redevelopment Authority
in and for the City of Chanhassen.
"Agreement" means this Agreement, as the same may be
from time to time modified, amended, or supplemented.
"Assessment Agreement" means any agreement substantially
similar to this Agreement providing for payment by the Agency
of 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, commissioner
of revenue, or any court) against which the rea~ property tax
is imposed.
"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
obligations issued by the City or the Agency to finance the
costs of the Project including but not limited to the Assessment
Reduction Payments made by the Authority pursuant to Modification
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
certification 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
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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
execution of such certification is a specified dollar amount
stated therein.
"Certificate of Occupancy" means the certification
provided to the Redeveloper, or the purchaser of any part,
parcel or unit of the Redevelopment Property, pursuant to
Section 4.2 of this Agreement.
"City" means the City of Chanhassen.
"Construction Plans" means the plans, specifications,
drawings and related documents on the construction work to be
performed by the Redeveloper on the Redevelopment Property which
(a) shall be at least as detailed as the plans, specifications,
drawings and related documents which are submitted to the building
inspector of the City, and (b) shall include at least the
following for each building: (1) site plan, (2) foundation plan;
(3) basement plan; (4) floor plan for each floor; (5) cross
sections of each (length and width); (6) elevations (all sides);
(7) landscape plan.
"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 specially 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 or other applicable statutes or pursuant to applicable
City Ordinances, or any sewer availability charges or similar
charges imposed by the Metropolitan Councilor Metropolitan
Waste Control Commission or similar governmental unit.
"Event of Default" means an action by the Redeveloper
listed in Article VI of this Agreement.
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....._w. --'/.J,.,V/U~
. .
"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 equaliza.tion, commis-
sioner 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 improvements which
are more particularly described on Exhibit A attached hereto and
made a part hereof.
"Minimum Market Value" means 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" rleans 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 II means the real property located wi thin
the boundaries of the entire redevelopment district as described
in Figure 1 contained in the "Chanhassen Downtown Redevelopment
Project Amended Plan, February, 1980, Revised March 20, 1980"
booklet.
"Project 78-3 Assessments" means the costs of City of
Chanhassen Improvement Project 78-3 which were specially assessed
against benefited real property pursuant to Chapter 429 of
Minnesota Statutes.
"Real Estate Taxes" means ad valorem 'taxes on real
property pursuant to Chapter 273 of Minnesota Statutes and not
including any special assessments levied pursuant to Chapter 429
of Minnesota Statutes.
"Redeveloper" means
or its successors and assigns.
"Redevelopment Property" means the real property
which is more particularly described on Exhibit B attached hereto
and made a part hereof.
"Redevelopment Plan" means the Plan.
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"State" means the State of Minnesota.
"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.
"Tax Official" means any City or County assessor,
county auditor, City, County or State board of equalization,
the commissioner of revenue of the State, or any state or
federal district court, the tax court of the State, or the
State Supreme Court.
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
auditor of the County certify the Assessed Valuation of all
taxable real property in the Project Area pursuant to Minnesota
Statutes, Section 462.585.
(e) The activities of the Agency are undertaken for
the purpose of removing, preventing or reducing blight, blighting
factors, or the causes of blight, and for the purposes of
eliminating or preventing the development or spread of deteriorated
or deteriorating areas.
(f) To finance the cost of the activities to be
undertaken by the Agency, the Agency proposes to use the proceeds
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.
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Section 2.2 Representations and Warranties by the Redeveloper.
The Redeveloper represents and warrants that:
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(a) The Redeveloper is a corporation duly organized
and in good standing under the laws of the State of Minnesota,
is not in violation of any provisions of its certificate of
incorporation, its by-laws, or the laws of the State of Minnesota,
has power to enter into this Agreement and has duly authorized
the execution, delivery and performance of this Agreement by
proper corporate action.
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(b) The Redeveloper will construct the Minimum
Improvements in accordance with the terms of this Agreement,
the Plan and all local, state and federal laws and regulations
(including, but not limited to, environmental, zoning, building
code and public health laws and regulations), and in accordance
with the Construction Plans which have been approved by the Agency.
(c) The Minumum Improvements constitute a permitted
use under the zoning ordinance of the City, a permitted use
under the Plan and the Act.
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(d) That at such time or times as may be required by
law, the Redeveloper will have complied with all local, state and
federal environmental laws and regulations, will have obtained
any and all necessary environmental reviews, licenses or
clearances 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
Project Area may be or will be in violation of any environmental
law or regulation (other than those notices or communications of
which the Agency is aware). The Redeveloper is aware of no
facts the existence of which would cause it to be in violation of
any local, state or federal environmental law, regulation or
review procedure or which would give any person a valid claim under
state environmental rights statutes.
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(e) The Redeveloper will use its best efforts to
construct the Minimum Improvements in accordance with all
existing local, state or federal energy-conservation laws or
regulations.
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(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 Minumum Improvements may be lawfully constructed.
(g) The real estate taxes and any installments
of special assessments levied against the Redevelopment Property
are not in default and that future real estate taxes will be
paid when due.
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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 unpaid upon the date of
execution of 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 shall
be made directly to the County's auditor in full or partial
satisfaction, as the case may be, of said eligible 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
shall be made to the City'streasurer 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 shall be
made directly to the Redeveloper or his designated successors
and assigns.
The Agency, at its option, may satisfy its
obligations to make assessment reductions payments under this
Agreement by either making a lump sum payment or by making a
series of semi-annual payments as individual installments of
eligible special assessments become due and owing to the City.
Section 3.2 Amount of Assessment Reduction Payment. The
amount of any assessment reduction payment made pursuant to this
Agreement shall be equal to the lesser of the following amounts:
(a) the sum of the principal balance of the eligible
assessments imposed on the Redev~lopment
Property, together with accrued interest
thereon, both principal 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 Minumum 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 execu-
tion of the Certification By Assessor, and
as certified in said certification.
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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 Improve-
ments thereon shall be
Dollars ($
~ereinafter 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
le0al 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. Notwith-
standing any language in this Agreement to the contrary, the
obligation of the Agency to make any assessment reduction payment
to the Redeveloper (or his successors and assigns) shall become
null and void on 19 ,unless the
Redeveloper has obtained a Certificate or-Occupancy on or
before said date.
ARTICLE IV.
CONSTRUCTION OF MINIMUM IMPROVEMENTS
Section 4.1 Construction of Minimum Improvements. The
Redeveloper agrees that it will construct the Minimum Improvements
on the Redevelopment Property and at all times prior to Maturity
Date will not cause a reduction in the real estate taxes paid
in respect of the Redevelopment Property through:
(a) willful destruction of the Minimum
Improvements or any part thereof, and/or
(b) willful refusal to reconstruct the Minimum
Improvements if or damaged or destroyed property.
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Rev. 3/10/82
Section 4.2
Certificate of Occupancy.
(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 termination of the agreements and covenants in this Agreement
to construct the Minimum Improvements. Such certification and
such determination shall not constitute evidence of compliance
with or satisfaction of any of the Redeveloper's obligations
to any holder of a mortgage or to any insurer of a mortgage,
securing money loaned to finance the Minimum Improvements, or
any part thereof.
(b) If the Agency shall refuse or fail to provide
any certification in accordance with the provisions of this
Section 4.2 of this Agreement, the Agency shall, within thirty
(30) days after written request by the Redeveloper, provide the
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 meaSUIes 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.
(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
termination date stated in Section 3.3 of this Agreement, it will
not cause a reduction in the Market Value of the Redevelopment
Property and the Minimum Improvements below the amount of the
Minimum Market Value and that it will not seek a reduction in
the assessed value of the 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
constitutionality of any tax statute determined by any Tax
Official to be applicable to the Project or the Redeveloper or
raising the unconstitutionality of any such tax statute as a
defense in any proceedings, including delinquent tax proceedings;
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(3) by willful destruction of the Redevelopment Property or any
part thereof; (4) by willful refusal to reconstruct damaged or
destroyed property; (5) by requesting the Assessor to reduce the
Market Value or Assessed Value of all or any portion of the
Redevelopment Property; (6) by petitioning the board of
equalization of the City or the board of equalization of the
County to reduce the Market Value or Assessed Value of all or any
portion of the Redevelopment Property; (7) by petitioning the
board of equalization of the State or the commissioner of revenue
of the State to reduce the Market Value or Assessed Value of all
or any portion of the Redevelopment Property; (8) by maintaining
an action in the District Court of the State or the Tax Court
of the State pursuant to Minnesota Statutes, Chapter 278, seeking
a reduction in the Market Value or Assessed Value of the
Redevelopment Property; (9) by applying to the commissioner of
revenue of the State requesting an abatement of real property
taxes pursuant to Minnesota Statutes, Chapter 270; and (10)
by maintaining any other proceedings, whether administrative,
legal or equitable, with any administrative body within the City,
the County, or the State or with any court of the State or the
federal government. The Redeveloper shall not, prior to the
Maturity Date, apply for a deferral of property tax on the
Redevelopment Property pursuant to Minnesota Statutes, Section
273.86.
Nothing in this Agreement shall limit the
discretion of the Assessor to assign to the Redevelopment
Property a Market Value to the Redevelopment Property in excess
of the Minimum Market Value established pursuant to Article V
of this Agreement. However, the Redeveloper is free to contest
said Market Value to the extent that it exceeds the Minimum
~~arket Value established in 53.3 of this Aqreement.
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), anyone 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
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~ev. 3/1U/82
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)i or
if the failure is by its nature incurable
within such thirty (30) days, failure by
the Redeveloper to furnish to the Agency
satisfactory assurances that the Redeveloper
can and will cure such failure or failures
within reasonable time.
(d) If the Redeveloper shall admit in writing
its inability to pay its debts generally as they
become due, or shall file a petition in bankruptcy
or shall make an assignment for the benefit of
its creditors, or shall consent to the
appointment of a receiver of itself or of
the whole or any substantial part of the
Redevelopment Property.
(e) If the Redeveloper shall file a petition or
answer seeking reorganization or arrangement under
the federal bankruptcy laws.
(f) If the Redeveloper, on a petition in bankruptcy
filed against it, be adjudicated a bankrlpt,
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 9.1 of this Agreement occurs, the
Agency may make anyone 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 pursuant to this Agreement.
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Section 6.3 No Remedy Exclusive. No remedy herein conferred
upon or reserved to the Agency is intended to be exclusive of
any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every
other remedy given under this Agreement or now or hereafter
existing at law or in equity or by statutes. No delay Or omission
to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a
waiver thereof, but any such right and power may be exercised
from time to time and as often as may be deemed expedient. In
order to entitle the Agency to exercise any remedy reserved to
it, it shall not be necessary to give notice.
,
Section 6.4 No Additional Waiver Implied by One Waiver. In
the event any agreement contained in this Agreement should be
breached by either party and thereafter waived by the other
party, such waiver shall be limited to the particular breach so
waived and shall not be deemed to waive any other concurrent,
previous or subsequent breach hereunder.
ARTICLE VII.
ADDITIONAL PROVISIONS
Section 7.1 Conflict of Interest; Agency Representatives Not
Individually Liable. No member, official or employee of the
Agency shall have any personal interest, direct or indirect, in
the Agreement, nor shall any such member, official, or employee
participate in any decision relating to this Agreement which
affects his personal interests or the interests of any corporation,
partnership, or association in which he is, directly or indirectly
interested. No member, official, or employee of the Agency shal
be personally liable to the Redeveloper or any successor in
interest, in the event of any default or breach by the Agency
or for any Assessment Reduction Payments which may become due
under the terms of.this Agreement.
Section 7.2 Duty of Agency to Act Reasonably. Wherever this
Agreement requires the Agency to approve any action of the
Redeveloper, it is understood and agreed that the Agency will
not unreasonably withhold or delay such approval.
Section 7.3 Titles of Articles and Sections. Any titles of
the several parts, Articles, and Sections of t~is Agreement are
inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 7.4 Notices and Demands. Except as otherwise
expressly provided in this Agreement, a notice, demand, or other
communication under this Agreement by either party to the other
shall be sufficiently given or delivered if it is dispatched by
registered or certified mail, postage prepaid, return receipt
requested, or delivered personally and
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(a) in the case of the Redeveloper, is addressed
to or delivered personally to the Redeveloper at
(b) in the case of the Agency ~s 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.
Section 7.5 Counterparts. This Agreement is executed in any
number of counterparts, each of which shall constitute one and
the same instrument.
Section 7.6 Notice to Subsequent Purchasers. The recording
or 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 certificate of title, if
any, so as to permit the recording of a copy of this Agreement
in the office of the Carver County Recorder.
IN WITNESS WHEREOF, the Agency has caused this
Agreement to be duly executed in its name ar.d behalf and its
seal to be hereunto duly affixed, and the Redeveloper has caused
this Agreement to be duly executed in its name and behalf and its
corporate seal to be hereunto duly affixed, on or as of the
date first above written.
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THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF CHANHASSEN
By
its
And
its
(Name of Redeveloper)
By
its
And
its
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STATE OF MINNESOTA)
) ss.
COUNTY OF CARVER )
this
The foregoing instrument was acknowledged before me
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 CARVER )
this
The foregoing instrument was acknowledged before me
day of , 19_____, by
and the and
of
a
corporation.
corporation, on behalf of said
Notary Public
County:
My Commission Expires:
This Instrument
LARSON & MERTZ
1900 First Bank
Minneapolis MN
(612) 333-1511
Drafted By:
Place West
55402
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EXHIBIT A
"SPECIMEN ONLY"
"Minimum Improvements" means a 20,000 square
foot office building constructed of tilt-up concrete panels
and masonry.
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EXHIBIT B
"SPECIMEN ONLY"
Lot 1, Block 1, Chanhassen Lakes
Business Park, according to the
map or plat thereof, on file and
of record in the Office of the
County Recorder, in and for
Carver County, Minnesota.
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Comments on Assessment Agreement
P. 1 Name of Redeveloper must be supplied
P. 9 Name of Redeveloper must be supplied
P. 7 Section 2.2(a) must be revised if Redeveloper is an
individual or partnership.
P. 9 Supply Minimum Market Value.
P. 9 Supply a date 18 months for date of signing of Agreement
P. 14Redeveloper's address must be supplied.
/
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DUNKLEY AND BENNElT
LAW OFFI~ES
1750 nRST BANK PLACE EAST
PILLSBURY CENTER
:ZOO SOUTH SIXTH STREeT
MINNeAPOl.IS, MINNESOTA 55402
TI:LEPHONI:: (612) 339-1290
.JAY L. BENNETT
WIl.LIAM M. OUNKl.E:Y
THOMAS 0, CREI GHTON
February 19, 1982
Mr. Donald p~~hlke
Carver c~~~~~easurer
600 Eas~ Fourth Street
Chas?-( MN 55318
Re: Fluoroware, Inc. - Statement
of Delinquent Taxes
-.
Dear Hr. Dahlke:
.' I
Fluoroware, Inc. has received a statement from the
County Auditor's office indicating that Carver County may
be taking the position that property taxes on Fluoroware's
project in Chanhassen Lakes Business Park are delinquent.
A copy of your statement is enclosed.
In May, 1981, it was agreed that Fluoroware, Inc. would
not be penalized for failure to submit payment on real estate
taxes and special assessments pending determination by the
City of Chanhassen concerning the means by which a substantial
credit against special assessments on Fluoroware's property
would be granted. Fluoroware had attempted to tender payment
with respect to the real estate tax portion of the bills
submitted without submitting payment for the special assess-
ments, however, in a conversation with you, you indicated that
severance of these items was not possible and that the entire
indebtedness could be held in abeyance without interest or
penalty.
On October 23, 1981, I corresponded with you indicating
that the City of Chanhassen had, once again, failed to
establish the guidelines entitling Fluoroware to the above-
referenced credit. Mr. Richard G. Revord of Pluoroware
corresponded with you separately on October 26, 1981
independently confirming our understanding that this entire
issue .would be held in abeyance.
In a meeting at Chanhassen City offices last night, the
Chanhassen BRA essentially committed itself to the credit
which Fluoroware has been relying upon for more than two
: '~=:'::2IVEn
FEB 221982
CITY OF CHAt~:-1'\SSE.ll
"
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Mr. Donald F. Dahlke
February 19, 1982
Page Two
years, and it was agreed that the final legal documentatiori
associated with this credit would be discussed and, absent
the unforeseen, passed at a meeting to be held on or before
March 18, 1982.
Accordingly, it appears as if the City of Chanhassen has,
at last, acted upon the program which induced Fluoroware to
purchase this property. We would certainly hope that the
precise dollar credit to which Fluoroware will be entitled
will be established before first half taxes are due in 1982,
but I wanted to respond immediately to the enclosed notice
to indicate Fluoroware's adamant position that it owes nothing
for special assessments, interest on such specials or, most
certainly, penalties for delinquent payment.
Thank you for your consideration of this matter.
Very truly yours,
Jay L. Bennett
JLB/dlc
Enclosure
cc_:
Richard G. Revord/
Donald Ashworth v'
DUNKLEY AND BENNETT
LAW OFFICES
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STltEETEJl-
ANDIlUS
C_ ,;
17809 HUTCHINS DRIVE: MINNETONKA. MINNESOTA 55343, PHONE (612) 474-1128
--.-......-
I ~EALTORS
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January 21, 1982
C"TV: C"""" I?\\H\"l.:J'A('.('.Ii:'U
I' ~ u,:- UV(.,n, ..'..,).~_~y
RC'Ci!iV~O
F.::n 1 e 1982
Mr. Roman Roos
701 Heidi Lane
Chanhassen, Minnesota
COMMu;':rry DEVELOP NiL n DEP"l.
55317
Dear Roman:
I am sorry I won't be able to attend the BRA meeting this
evening, because needless to say I have some real concerns
about the direction in which the -Chanhassen Lakes Business
Center is heading.
,
I first met with the HRA in November of 1979 and was
encouraged to learn that they were contemplating some
programs that would have a positive impact on businesses
considering moving into our community. Special assessment
costs on this project kept rising (see attached letter
projecting specials at $14,000-$14,200 per acre - they wound
up in excess of $20,000 per acre). When the project was
completed, prices we needed to ask for sites in the Business
Park were no longer competitive with adjacent communities.
For instance:
F.S.I. spent quite a bit of time looking over and considering
all aspects of Chanhassen Lakes. They finally purchased a
~en acre parcel on Lake Hazeltine in Jonathan for $22,480
an acre with all utilities in and paid (we have to get
$40,000 in Chanhassen Lakes).
- Dick Fillburn of Lake Region and I met at least three
to discuss the possibilities in Chanhassen. They too
up building a beautiful new building in Jonathan on a
acre site on Lake Hazeltine for $25,961 per acre, all
utilities in and paid (again we must get $40,000).
times
wound
15.6
- H.E.I. looked at Chanhassen but wound up purchasing a 4~
acre site on Highway #5 in Victoria for $23,333 per acre
with sewer in and paid.
COMMERCIAl/INDUSTRIAL DIVISION
Individual Membership. Society of Industrial Realtors. Certified Commercial & Investment Membership. National Association
01 Realtors. Monneapolis Commercial Multiple Listing Service. Independent Fee Appraisers Association
. .
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of':
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(, \;
Mr. Roman Roos
January 21, 1982
Page 2
Industrial land in Jonathan according to the latest MLS
information, ranges from $11,678 per acre on the site across
from Peavey to $28,029 per acre for a beautiful 10 acre site
next to Preferred Products. All utilities are in and paid.
Next summer, the new owners of Jonathan plan to be opening
up more industrial sites. This will be added competition.
American Crystal Sugar Co. has three sites in Chaska with
rail as well as city utilities. Prices range from $9,000 per
acre to $20,000 per acre.
The only industrial site that I can find along #5 in Eden
Prairie is close to #494 and is selling for $60,000 an acre.
I am never quite sure how badly Chanhassen wants jobs and
industrial growth. But if they do, I think a willingness to
provide some program of encouragement to employers considering
Chanhassen is very important. It 'has been over two years
since this subject was first discussed by the HRA, which would
lead one to believe there really isn't much interest.
Sincerely,
,"'-:::':::-', / I
'~~-'~~'<'~~--
Bud Andrus
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3.
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN. MINNESOTA 5S317
(612) 937-1900
MENORANDUM
TO:
Chanhas sen HRA .
FROM:
.
Scott A. Martin, Executive Director ~
DATE:
March 9, 1982
RE:
Special Assessment Reduction Program for Business Park Lands
The attached resolutions and legal documents pertaining to the
establishment of a "Special Assessment Reduction Program" for
Park Two and Chanhassen Lakes Business Park (Phase I) are presented
.for your approval and final adoption.
As you requested, I have once again invited representatives from
Rauenhorst Corporation to attend your meeting of March 18, 1982
in order to discuss their plans for development of Business Park
lots and the impact of the special assessment reduction program
on their development plans. Mr. Robert Worthington, Director of
Planning and Governmental Affairs, has accepted our invitation
and will be in attendance at this meeting to represent Rauenhorst.
Craig Mertz and I will be prepared to discuss specific elements of
the attached documents. and answer ,any questions you may have.
Following HRA approval., this program will be presentee to the City
Council for their approval, after which time the program will become
effective.
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LARSON & MERTZ
ATTORNEYS AT LAW
1900 F"IRST BANK PL.ACE WEST
RUSSEL.L. H. L.ARSON
CRAIG M. MERTZ
MINNEAPOLIS, MINNESOTA 55402
TELEPHONE
(612J 333-1511
O~ COUNSEL
HARVEY E. SKAAR
MARK C. MCCUL.L.OUGH
March 11, 1982
Scott A. Martin
Executive Director
Chanhassen HRA
Box 147
Chanhassen MN 55317
Re: HRA's Proposed Assessment
Reduction Payments
Dear Scott:
After having reviewed the comments received from the members of the
City Council, the members of the HRA board, and various developers, we
have redrafted the documents which would establish the 7% assessment
reduction program. We submit the following documents for your
consideration:
a) The proposed text of Modification No. 5 to the HRA plan
b) The form of HRA resolution approving said modification and
approving a form of assessment agreement
c) The form of a City Council resolution approving Modification No. 5
d) Text of a proposed form of assessment agreement to be signed
by all program participants.
Also included is an outline providing an overview of the program as
set forth in the enclosed documents.
We wish to highlight the most significant changes:
1. The definition of eligible assessments has been revised to
specifically mention "unit charges" and assessments for certain
future public improvement projects (Table 4 and 5 in the Amended
Plan booklet contemplates the construction of further public
improvements in the business park area.)
2. The redeveloper agrees to a stipulated value of his property upon
completion, rather than agreeing to spend a stipulated amount of
money in the construction process.
3. The stipulated value of the construction is established by the
Assessor before construction starts.
Scott A. Martin
March 11, 1982
Page Two
4. The amount of the assessment reduction is 7% of the new
value added by the construction.
5. A definition of Substantial Completion has been added.
6. The concept that the HRA could postpone assessment
reduction payments because of insufficient tax increment flow in a
particular year has been eliminated. (A surge of construction
activity in one year could cause the HRA to borrow money to cover
the short term gap between the date on which assessment reduction
payments are due and the date on which the increased increments
are received.)
7. The date to be supplied in ~3.4 of the Assessment Agreement is the
estimated date of completion of construction (not the 12/31-1987
end of the Program.)
Some concern has been expressed regarding the "blight" findings and the
"underutilized and stagnant" findings contained in the approving
resolutions. These are not new findings. They are a reconfirmation of
the findings made by the Council and the Commissioners in 1978 when the
HRA district was expanded south of Highway 5 and again in 1980 when the
new plan booklet was adopted.
The following findings are new:
a) That the downtown project is not feasible unless the assessment
reduction program is established, and
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b) That the business park area will continue to be unproductive unless
the assessment reduction program is established.
These findings are crucial. They form the key legal justification for thel
establishment of the 7% program. Stated very simply the question which
is now before the HRA and the Council is as follows:
Is the 7% program necessary to ensure the success of
the Chanhassen Downtown Redevelopment Project?
The program outlined in the enclosed documents is
improvement over the previously described format.
the Assessor in the program substantially reduces
cient increments would be received from which the
would be paid.
a significant
The participation of
the risk that insuffi-
assessment reductions
If you have any questions, please call.
CMM:ner
enc
Very truly yours,
C A 7Yl./L-<9~
CRA::r MERTZ ~(
Assistant Chanhassen City Attorney
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I.
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B.
C.
II.
A.
C.
III.
A.
B.
C.
D.
3/10/82
OUTLINE OF
PROPOSED 7%
INCENTIVE PROGRAM
Plan of Action.
HRA adopts resolution a) approving Modification No. 5 and
b) approving standard form of Assessment Agreement.
City Council asked to approved Modification No. 5 by
formal resolution.
HRA by formal resolution, acts on applications of Fluoroware and
Dayco to retroactively participate in Program.
Eligibility.
Any redeveloper of any lot in Park II or in that part of
Chanhassen Lakes Business Park lying north of Milwaukee
Road Right-of-Way. (Program is not retroactive to any
existing construction except as provided in I(C) above).
B.
Redeveloper must sign "assessment agreement" which fixes a
minimum market value for real estate tax purposes upon
completion of construction.
The redevelopment property must be subject to Project 78-3
assessments or unit charges; or must be subject to future
assessments for future public improvements to be constructed
in the area described in II(A) above. (See definition of
"21igible assessments" in ~l.l) .
Contents of Assessment Agreement.
Redeveloper agrees to construct certain "minimum
improvements" (~2. 2) .
Before construction starts, Assessor fixes astipulated
minimum value of the property upon completion of the
improvements (~3.3).
Redeveloper agrees that future real estate taxes will be
based on a value not less than the amount fixed by the
Assessor (~5.1 and 3.3). Note this establishes a "floor" for
the level of real estate taxes, it does not establish
a "ceiling" for real estate taxes.
Amount of payment.
1. 7% of the new value added by the construction~ (~3.2)
2. Payments cannot exceed the amount of eligible
assessments on date of signing of agreement. (~3.2)
HRA, at its option, may either pay the assessment installments
as they come due or pay in one lump sum. (53.1, last 1[).
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Outllne contd.
"
E. Assessment reduction payments are contingent upon
redeveloper's real estate taxes being current.
(52.2, sub.g and 56.1, sub.a).
F. Timing of Payments.
G. Events Causing Forfeiture of Right to Participate in the
Program. (56.1).
1. Failure to keep real estate taxes current.
2. Failure to complete improvements before deadline.
3. Bankruptcy of redeveloper.
H. How Are Redevelopers' Obligations Secured?
1. Future real estate taxes will be based on a
stipulated minimum value. (53.3).
2. Failure to obtain certificate of occupancy by promised
completion date causes redeveloper to be dropped from
the program. (53.4).
3. HRA has no obligation to make payments unless the
promised improvements are completed by the
promised date. (53.1 and 3.4).
4. If redeveloper fails to keep real estate taxes current,
the HRA, -by court action, can recover any payments pre-
viously made. (56.2, sub.d).
CMM:ner
3/10/82
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MODIFICATION NO. 5
TO
CHANHASSEN DOWNTOWN REDEVELOPMENT PROJECT AND PLAN
Pursuant to Section 1, G, of the Chanhassen Redevelopment Plan,
dated October 28, 1977, as amended heretofore, said plan is
hereby further modified as follows:
Subsection A (Project Expenditures) of Section V
(Financial Plan) of the Amended Plan Booklet (February,
1980, Revised March 20, 1980) is amended to read as follows:
A. PROJECT EXPENDITURES
Project expenditures include all estimated public costs for
assembling and clearing land and constructing public
improvements. They are presented in two groups.
(1) The first group - short-term expenditures - is presented
in Table 4 and consists of all costs associated with Phase I and
Phase II developments in the CBD area as well as all public
costs for development lands contained within the plat of Park II
and within that part of the plat of Chanhassen Lakes Business
Park which lies northerly of the Milwaukee Road railroad right-
,of-way, all of which are referred to collectively hereinafter
as the assessment reduction program area.
The City of Chanhassen acting in cooperation with the Chanhassen
Housing and Redevelopment Authority installed streets, curbs,
gutters, watermains, sanitary sewer mains, and storm water
facilities in the westerly portion of the Chanhassen Lakes
Business Park and abutting real estate as City Improvement
Project 78-3. The City carried out the construction of said
improvements under the authority of Chapter 429 of Minnesota
Statutes. On September 8, 1980, the Chanhassen City Council
adopted an assessment roll levying special assessments against
the benefited land in the assessment reduction program area.
Prior to the completion of Project 78-3 the assessment reduction
program area was a "blighted" area and a "deter.iorated" area as
defined in the Minnesota Housing and Redevelopment Act (Chapter 462
Minnesota Statutes).
In order to eliminate blight in the assessment reduction program
area it will be necessary to construct further public improvements
in the assessment reduction program area.
Rev. 3/10/82
Under an assessment reduction program to be established by
resolution of the Chanhassen HRA a portion of the Tax Increment
Proceeds will be paid to either the redeveloper of individual
parcels of land, or Chanhassen City Treasurer or the Carver
County Auditor as a credit on a parcel by parcel basis against
the Project 78-3 assessments and against assessments levied in
connection with the installation of further public improvements.
The amount of each such reduction shall be computed according
to a uniform formula which takes into account the value of
private improvements which various redevelopers contract to
construct within the assessment reduction program area. No such
assessment reduction payments shall be made unless the
redeveloper of any such parcel enters into an assessment agree-
ment with the HRA specifying the nature of the private improvements
to be constructed and stipulating a minimum value of said
improvements for tax assessment purposes upon completion of the
improvements.
Because the assessment reduction program area is a scenic, rolling
lake front site, the cost of installation of public improvements
was high compared to more typical grid-patterned flat industrial
parks in other communities. Other factors contributing to the
high cost of installation of public improvements were the
oversizing of utilities to accommodate anticipated future growth,
the effort to ensure the preservation of scenic amenities, the
construction of a new well house and field, ~he construction of
a major trunk sewer facility to serve the area, the extension
of a major county road and the upgrading of said road to urban
standards, the installation of urban standard streets and street
lighting, the installation of extensive storm sewer facilities,
and the provision of bike trails and walkways. Accordingly, land
costs in the assessment reduction program area are not
competitive with land costs in other communities. This adversely
affects any efforts by the HRA to relocate within the assessment
reduction program area those businesses which will be displaced
as a result of plan.
The assessment reduction program area will continue to lie
stagnant and unproductive unless some portion of the public
improvement costs can be absorbed through the tax increment
process. Unless an assessment reduction program, as described
above, is established and implemented, as part Df the
Chanhassen Downtown Redevelopment Project, the entire Chanhassen
Downtown Redevelopment Project will not be feasible;
(2) The second group - long-term expenditures - is presented
in Table 5 and consists of all costs for developing the remainder
of the Chanhassen Lakes Business Park area. These costs would
be incurred only if additional future development of Chanhassen
Lakes Business Park and the abutting real estate occurs.
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Rev. 3/10/82
HOUSING AND REDEVELOPMENT AUTHORITY
OF
CHANHASSEN, MINNESOTA
Dated:
Motion by Commissioner
Resolution No.
Seconded by Commissioner
RESOLUTION
APPROVING PLAN MODIFICATION NO. 5
BE IT RESOLVED, by the Housing and Redevelopment
Authority, of the City of Chanhassen, Minnesota, as follows:
SECTION 1.
RECITALS.
1.01. The Chanhassen City Council and this Authority
have approved a redevelopment project to be undertaken by the
Authority, designated as the Chanhassen Downtown Redevelopment
Project (the "Project"), and a Redevelopment Plan (the "Plan"),
for the Project.
1.02. Minnesota Statutes, Section 462.525(Subd. 6)
empowers this Authority to make minor changes in the Plan under
certain limited circumstances which do not require approval by
the governing body of the municipality within which the project
is located.
1.03. Modification No.5 dated ,
19 , has been presented to the Authority for its consideration
and approval.
1.04. Modification No.5, if adopted, would implement,
pursuant to 55273.76, 462.445, Subd. ,4(1), and 462.445, Subd. 4(16)
of Minnesota Statutes, the program of expenditures in the area
of Chanhassen Lakes Business Park as described in Table 4
("Project Expenditures Short-Term Costs") of the "Amended Plan
Draft February, 1980, Revised March 20, 1980" booklet which was
approved as Modification No.3 to the Plan on March 20, 1980.
SECTION 2.
FINDINGS AND APPROVAL.
2.01. The Authority hereby finds that the approval of
Modification No.5, a copy of which is attached hereto and made
a part hereof as Exhibit A, would not have the effect of
substantially altering or affecting the general land uses
established in the Chanhassen Downtown Redevelopment Plan and
Project.
2.02. The Authority hereby approves said Modification
No.5 to the Chanhassen Downtown Redevelopment Plan and Project.
2.03. The Authority hereby finds that but for the approval
of said Modification No. 5 and the assessment reduction program
described in said Modification No.5 the land in the assessment
reduction program area will continue to lie stagnant, underutilized,
and unproductive.
2.04. The Authority hereby finds that the entire Chanhassen
Downtown Redevelopment Project will not be feasible unless the
assessment reduction program described in Modification No.5
is established and implemented.
2.05. The Authority hereby finds that the costs of
implementing the assessment reduction program described in
Modification No.5 (a) are expenditures necessary to carry out
the purpose of the Minnesota Municipal Housing and Redevelopment
Act, (b) are expenditures necessary to prepare the assessment
reduction program area for private redevelopment and improvement,
and (c) are a proper part of the public redevelopment cost of
the Chanhassen Downtown Redevelopment Project.
SECTION 3.
IMPLEMENTATION OF MODIFICATION NO.5.
3.01. Only the following lands shall be eligible to
participate in the assessment reduction program described in
Modification No.5:
Chanhassen
Lots 1
Lots 1
Lots 1
Lots 1
.Lots 1
Lakes Business Park:
to 11, Block 1
to 5, Block 2
& 2, Block 3
& 2, Block 4
to 6 and 8 to 11, Block 5
Park II:
All of
All of
Lot 2,
Block 1
Block 2
Block 3
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3.02. No assessment reduction payments shall be made in
respect of any private improvements which are constructed by, or
on behalf of, or for the occupancy of any person, corporation,
or other entity which (a) has been displaced as, the result of I
the acquisition by the Authority of said person's, said corporation's,
or said entity's place of business and (b) has received from the
Authority relocation benefits in excess of the fair market value
of the acquired property and in excess of the value of any
relocation benefits paid by the Authority pursuant to Chapter 117
of Minnesota Statutes.
3.03. All other terms and conditions of the assessment
reduction program contemplated by Modification No. 5 shall be as
set forth in the form of Assessment Agreement which is attached
hereto and made a part hereof as Exhibit B and which is hereby
approved.
-2-
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3.04. The Executive Director and Chairman of the Authority
are not authorized to execute any such assessment agreement with
any redeveloper or land owner unless specifically authorized
to do so by further resolution of the Authority.
3.05. The above described assessment reduction program
shall terminate on December 31, 1987, with no further assessment
reduction payments to be made on or after that date, notwith-
standing any language in any assessment agreement to the contrary.
The Authority, however, reserves the right to extend the assessment
reduction program for additional periods of time beyond the
December 31, 1987 expiration date.
Passed and adopted this day of
19 , by the Housing and Redevelopment Authority of the
City of Chanhassen, Minnesota.
Chairman
Attest:
Executive Director
Yes
No
Absent
-3-
EXHIBIT A
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To be supplied (a copy of
Modification No.5)
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EXHIBIT B
To be supplied (a copy of
standard form of assessment agreement)
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TRAFFIC ANALYSIS REPORT
for
CHANHASSEN DOWNTOWN
REDEVELOPMENT PROJECT
Prepared by:
Bennett-Ringrose-Wolsfeld-Jarvis-Gardner,
2829 University Avenue S.E.
Minneapolis, Minnesota 55414
March, 1982
Inc.
CITY OF CHANHASSEN
RECEIVED
t~'.r\R 91982
COMMUNITY DEVELOpr~';:.:;n DEPT.
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2.
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TABLES
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TABLE OF CONTENTS
Paqe
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I NTROD UCT I ON. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I. TRIP GENERATION................................................ 3
I I I. TRAFFIC ASSiGNMENT.............................................
8
IV. EXISTING AND FUTURE TRAFFIC VOLUMES............................ 11
V.
TRAFF I C SAFETY
15
... .... ....... ............. ......... ............
V I.
ROADWAY NEEDS ................................................. 16
FIGURES
I .
PROJ EeT SiTE...................................................
2
APPROACH DIRECTION DiSTRIBUTION................................
9
1980 AVERAGE DAILY TRAFFiC..................................... 12
1985 AVERAGE DAILY TRAFFiC..................................... 13
2000 AVERAGE DAILY TRAFFiC..................................... 14
RECOMMENDED ROADWAY SYSTEM IMPROVEMENTS (1985)
20
................
1 .
1985 DAILY TRIP GENERATION.....................................
4
2000 DAILY TRIP GENERATION.....................................
5
1985 PEAK HOUR TRIP GENERATION.................................
6
2000 PEAK HOUR TRIP GENERATION.................................
7
5. APPROACH DIRECTION DiSTRIBUTION................................ 10
TH 5 TRAFFIC ACCIDENTS 1976-1980 .............................. 15
TRAFFIC OPERATING CONDITIONS - EXISTING ROADWAY/YEAR 1985
TRAVEL DEMAND ................................................. 18
TRAFFIC OPERATING CONDITIONS - RECOMMENDED 1985 ROADWAY
IMPROVEMENTS/YEAR 2000 TRAVEL DEMAND .......................... 21
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I. INTRODUCTION
The Chanhassen Downtown Redevelopment Project is designed to induce develop-
ment in the City of Chanhassen. The redevelopment project consists of two
sections. (Figure 1) The CBD area, north of TH 5, wil I be redeveloped and
wi I I serve as the commercial/entertainment center of Chanhassen. The
Business Park area, south of TH 5 wil I be developed with industrial and
industrial-related uses.
The development proposed wil I take place over an extended period of time.
This traffic analysis focuses on 1985, when the ring road area of the CBD
is expected to be redeveloped, and also addresses the year 2000, when the
entire project area is assumed to be developed.
Purpose
This traffic analysis determines the potential traffic related impacts of
the proposed development In the Chanhassen Downtown Redevelopment Project.
The traffic analysis identifies roadway improvements which wil I be needed
to provide a satisfactory level of service for site and non-site oriented
traffic for 1985, and discusses further improvements which wil I be needed
by the year 2000.
Methodoloqy
The traffic analysis was conducted in four steps:
. Trip Generation - estimate the number of trips which wil I be
generated by the proposed redevelopment project for both 1985 and
the year 2000.
. Traffic Assignment - determine which roads will be used by the trips
to and from the site.
. Existing and Future Traffic Volumes - document existing traffic
volumes and estimate future traffic volumes for each forecast year on
the affected portions of the roadway system.
. Roaday and Site Access Needs and Recommendations - determine the
roadway improvements required to serve the forecast volume of traffic
at an acceptable level of service.
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CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PROJECT
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MINNESOTA
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I I I. TRAFFIC ASSIGNMENT
The traffic generated by the Chanhassen Downtown Redevelopment Project must
be assigned to roads serving the site in order to identify locations of
potential traffic related impacts. The traffic assignment is based on the
available roadway system, land use patterns and population distribution.
The principle roadways providing local and regional access to the site are
shown in Figure 1. The regional access to the site is discussed below.
. TH 5, which is classified as a minor arterial in the Chanhassen
Comprehensive Plan, provides the primary regional access to the
site. TH 5 presently carries large volumes of traffic and is fre-
quently congested in the peak hours. TH 5 connects with 1-494 and
County Road 62 to the east. Portions of TH 5 between Chanhassen and
1-494 experience congestion and delays during peak periods.
. TH 7, which is classified as an intermediate arterial in the
Metropolitan Development Guide, is an east/west route approximately
3.5 mi les north of the redevelopment site. The north/south routes
near the redevelopment site do not have good access to TH 7.
. TH 169-212 is classified as a minor arterial. Its present alignment
in Chanhassen is along the Minnesota River about 3 miles south of
the redevelopment site. The Minnesota Department of Transportation
has been working toward the construction of TH 169-212 on a new
alignment to the north. At this time, however, planning has been
terminated due to the lack of available transportation funds. The
City of Chanhassen would like to see TH 169-212 constructed on a new
al ignment farther to the north and be designated as a principal
arterial. TH 169-212 does not presently serve the redevelopment
site because the al ignment is too far south of the site.
. TH 41, which is classified as a minor arterial, is the principle
north/south route near the redevelopment site. TH 41 provides a
good connection between TH 7 and TH 5.
The other roadways near the redevelopment site are classified as col lectors
and local streets. Their primary purpose is to provide access to the
arterial road system. They have direct land access and are designed to
circulate and distribute traffic within the redevelopment site.
The redevelopment site is located on the edge of the Metropolitan Urban
Service Area (MUSA). The largest population concentrations are to the
north and east of the site. The approach direction distribution shown in
Figure 2 and summarized in Table 5 is based on the approach distribution
implicit in the year 2000 regional traffic assignments prepared by the
Metropolitan Council and the Minnesota Department of Transportation.
The roadway network used in the Metropolitan Council Travel Model is based
on the 1990 Metropol itan Highway System Plan. The significant differences
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CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PROJECT
APPROACH DIRECTION
DISTRIBUTION
Figure 2
~North
Scale: 1. 2000'
CHANHASSEN, MINNESOTA
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between the 1990 plan and the existing roadway system is the relocation of
TH 169-212 and the completion of Hennepin CR 62 between Shady Oak Road and
CR 4.
TABLE 5
APPROACH DIRECTION DISTRIBUTION
Tr i ps To/From:
Percent of Tota I
Trips to Site
TOTAL
12%
34%
29%
7%
9%
5%
--i!
100%
TH 5 - West
TH 5 - East
TH 101 - North
TH 101 - South
County Road 17 - North
County Road 17 - South
Audubon Road - South
Seventy two percent of the trips wil I approach the site from north and east
of the site, where the greatest population concentrations are located.
The above approach distribution was used to assign site generated traffic
for both 1985 and 2000. Even though the TH 169-212 project and the County
Road 62 project may be implemented by the year 2000, these improvements
wi II not affect the approach distribution significantly for the fol lowing
reasons:
. The population distribution wil I not change significantly between
1985 and 2000. The major population centers wil I sti II be within
the MUSA boundary to the north and east of the site.
. The realignment of TH 169-212 wil I be south of the redevelopment
site and will not attract a significant number of the trips destined
to the north and east. The major impact of upgrading TH 169-212
wi I I be to attract non-site trips that would otherwise use TH 5.
. The completion of Hennepin County Road 62 wil I not significantly
change the approach distribution to the site since the roads pro-
viding access to CR 62 will not be improved. Presently all of the
roads that would provide access from the redevelopment site to CR 62
are two-lane, two-way roadways with significant geometric design
related problems (i.e. narrow pavement, sharp curves, multiple pri-
vate accesses, narrow bridges and poor sight distances).
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IV. EXISTING AND FUTURE TRAFFIC VOLUMES
The existing traffic volumes shown in Figure 3 are 1980 average daily traf-
fic volumes obtained from the Minnesota Department of Transportation traf-
fic flow maps. Figure 4 and Figure 5 show projected traffic volumes for
1985 and the year 2000. The projected traffic volumes are a combination of
non-site oriented traffic and site oriented traffic.
Non-Site Traffic
Non-site traffic expected to be present in 1985 is a combination of two
elements:
. Existing traffic (shown in Figure 3).
. An increase in existing traffic ranging from 3 to 5 percent per year
representing traffic generated by new development outside the rede-
velopment project area.
Non-site traffic expected to be present in 2000 is based on year 2000 traf-
fic assignments prepared by the Metropolitan Council and the Minnesota
Department of Transportation for the bui Id and no-bui Id conditions of
Hennepin County Road 62. These traffic assignments are based on the 1990
transportation network identified in the Metropolitan Development Guide
which assumes the upgrading of TH 169-212 from a minor arterial to a
principle arterial on a new alignment. The year 2000 traffic assignments
are adjusted to account for the level of development assumed in the
Metropolitan Council socio-economic forecasts upon which the traffic fore-
cast is based.
Site Traffic
The site oriented traffic is based on the trip generation shown in Table 3
and Table 4. Using the approach distribution in Table 5, the trips are
assigned to the available roadway system using the fol lowing three-step
process:
1. The site-generated trips are divided by the approach distribution in
Table 5.
2. The trips are assigned to logical entrances into the site.
3. The trips are assigned to logical routes to the site.
-11-
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CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PROJECT
1980 AVERAGE DAILY TRAFFIC
Figure 3
~ North
Source: Minnesota Department
of Transportation
N/ A - Not Available
Scale: 1- 2000'
2E:1I1~'"
CHANHASSEN,
MINNESOTA
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CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PROJECT
CHANHASSEN,
MINNESOTA
2E:lllt\\'
1985 AVERAGE DAILY TRAFFIC
Figure 4
't' North
000
000
Site Generated Dally Traffic
Total Average Daily Traffic
Scale: 1- 2000'
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DOWNTOWN
REDEVELOPMENT
PROJECT
CHANHASSEN,
2000 AVERAGE DAILY TRAFFIC
Figure 5
't North
000
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Site Generated Dally Traffic
Total Average Dally Traffic
Scale: 1- 2000'
MINNESOTA
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V. TRAFFIC SAFETY
In the 1976 to 1980 reporting period, the average accident rate along TH 5
in Chanhassen between TH 41 and the east city limits was about 15 percent
higher than the average rate for simi lar roads in the western half of the
Twin Cities Metropolitan Area. As shown in Table 6, about 50 accidents
occur each year on this section of TH 5; one fatal accident occurred during
the five year period (in 1977).
TABLE 6
TH 5 TRAFFIC ACCIDENTS 1976-1980*
(TH 41 TO EAST CITY LIMITS OF CHANHASSEN)
Acc i dent Rate
Number of Accidents ( Number /M i I I ion
Year Fatal I nj ury Property Damaqe Total Veh i c I e Mil es)
1976 0 18 28 46 2.5
1977 1 10 37 48 2.5
1978 0 14 28 42 2.1
1979 0 18 28 46 2.3
1980 0 25 27 52 2.4
1976-1980 85 148 234 2.4
1976-1980 Mn/DOT District 5 Average **
2.1
*
Source:
Mn/DOT District 5 Accident Analysis Unit
** Represents average accident rate for two-lane, two-way state trunk high-
ways within Mn/DOT District 5 with average daily traffic volumes in the
10,000 to 20,000 vehicles per day range.
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VI. ROADWAY NEEDS
The final step in this traffic analysis is to identify the transportation
facilities needed to serve the traffic volumes forecast for 1985 and the
year 2000.
The existing roadway system and improvements already proposed for that
roadway system are discussed first to identify existing problems and
planned solutions. Secondly, the roadway system improvements needed to
serve traffic expected in 1985 are discussed. Finally, additional roadway
improvements needed to serve traffic generated by development expected be-
tween 1985 and 2000 are discussed.
Existinq Roadway System and Planned Improvements
The improvements described include those proposed in the Chanhassen
Comprehensive Plan, improvements proposed in the Chanhassen downtown rede-
velopment plan, and state and county improvement plans. Only one of the
roadway improvement plans discussed below is currently programmed to take
place.
. TH 5 is classified as a minor arterial in the Chanhassen
Comprehensive Plan and provides the primary regional access to the
site. TH 5 connects with 1-494 and TH 169-212 to the east. TH 5 is
presently a two-lane, two-way roadway except_at major intersections
where a median and exclusive turn lanes are provided. TH 5 pre-
sently carries large volumes of traffic and is frequently congested
in the peak hours.
In the vicinity of the site, signalization is provided at the inter-
section of TH 5 with West 78th Street/Dakota Avenue and at the
intersection of TH 5 with TH 101. Free flow right turns are pro-
vided on al I approaches and exclusive left turn lanes on TH 5 are
provided at each of these intersections.
TH 5 also has at-grade intersections at County Road 17, Audubon
Road, CSAH 117 and TH 41. At the signalized intersection with TH 41
west of the site, TH 5 has been widened to four lanes.
I
Traffic operations problems exist at the unsignalized intersections
with TH 5. Left turns from the minor roads onto TH 5 frequently
experience significant delays during the peak periods.
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The Minnesota Department of Transportation (Mn/DOT) does not have
any improvement plans for TH 5 in this area. The City of Chanhassen
has proposed several improvements to TH 5 to increase the capacity
and improve the traffic operations of TH 5 in Chanhassen. The
improvements proposed in the Chanhassen Comprehensive Plan include
reconstruction of the intersection of TH 101 with West 78th Street
(east intersection), and reconstruction of the intersection of
Dakota Avenue with TH 5 to provide a direct connection of TH 101 to
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TH 5 at Dakota Avenue. The City of Eden Prairie has proposed
widening TH 5 to four lanes from Chanhassen to 1-494. None of the
improvements discussed above are currently programmed to take place.
. TH 101 is classified as a col lector in the Chanhassen comprehensive
plan. TH 101 is a two-lane, two-way roadway with significant
geometric design related problems. South of TH 5, TH 101 has
I imited sight distances, sharp curves, narrow road surface, narrow
bridges and a number of private accesses. North of TH 5, TH 101 has
better geometric design but sti II has a significant number of pri-
vate driveway accesses and a sharp S-curve in the vicinity of
Town I ine Road.
TH 101 is discontinuous for a short distance in the area of the
redevelopment site. Through traffic on TH 101 is routed along West
78th Street through the Chanhassen CBD.
The Minnesota Department of Transportation has classified TH 101 as
a temporary state highway which means that, other than surface
maintenance, no state-funded highway improvements will occur. The
City of Chanhassen has proposed several changes to TH 101 to improve
traffic operations. South of TH 5, the city proposes to straighten
some of the curves on TH 101. To rei ieve congestion in the CBD, the
city proposes relocation of TH 101 along TH 5 to the reconstructed
intersection of TH 101 with TH 5 at Dakota Avenue.
. West 78th Street is classified as a col lector in the City's Compre-
hensive Plan. West 78th Street is a two-lane, two-way roadway that
provides the primary access to the Chanhassen CBD. The major
problems on West 78th Street are the intersections with TH 5 (Dakota
Avenue), TH 101 and County Road 17.
The redevelopment plan proposes to close West 78th Street through
the CBD and develop a ring road around the core area of the CBD.
The plan also proposes relocating the connection of West 78th and
County Road 17 to the north to provide separation from the intersec-
tion of County Road 17 with TH 5.
East of TH 101, West 78th Street would 'serve as a frontage road
along TH 5.
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. County Road 17 is classified as a col lector in the Chanhassen
Comprehensive Plan. County Road 17 had been discontinuous at TH 5
until recent improvements were completed. The new alignment pro-
vides a continuous roadway to Lyman Boulevard south of TH 5.
County Road 17 is a two-lane, two-way roadway which has been widened
to four lanes at the intersection with TH 5 to a point several
hundred feet south of TH 5. Mn/DOT has determined that signals are
warranted at the intersection of TH 5 and County Road 17. Bids are
expected to be let in 1983.
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Roadway System Improvements (1985)
Traffic volumes forecast for the year 1985 represent significant increases
from present traffic volumes, mainly as a result of development in
Chanhassen. Traffic generated by the development ~roposed through 1985
would put considerable pressure on existing roadway facil ities. East-West
traffic volumes would increase significantly as trips oriented to the
Redevelopment area travel to and from the site.
The result is traffic volumes in the 16,000 to 23,000 vehicles per day
range along TH 5 by 1985. The development proposed within the study area
further stresses the capacity of the roadway system at the points where
traffic enters or crosses TH 5. Capacity analysis indicates that by 1985,
without upgrading, the intersections and the roadway segments between the
intersections would be operating near or over capacity during peak periods
(Table 7). Even though calculated volume to capacity (V/C) ratios are less
than 1.0 for portions of TH 5 in Chanhassen, there would be severe
congestion and long delays for trips along TH 5 and for many trips crossing
TH 5.
TABLE 7
TRAFFIC OPERATING CONDITIONS
EXISTING ROADWAY/YEAR 1985 TRAVEL DEMAND
Location
Vol ume to
Capacity Ratio (V/C)
Level of
Serv ice
TH 5, Audubon Road to County Road 17 (link)
TH 5 and County Road 17 (intersection)
TH 5, County Road 17 to TH 101 (link)
TH 5 and TH 101 (intersection)
TH 5, TH 101 to Dakota Avenue (I ink)
TH 5 and Dakota Avenue (intersection)
TH 5, Dakota Avenue to E. City Limits
0.97
0.71
1.07
1.06
1.05
0.86
1.28
E
C
F
F
F
D
F
The roadway improvements needed to alleviate the expected traffic
congestion were identified based on a goal of Level of Service "D"
operating conditions2! or better during the peak traffic hours of the day.
2! Level of service D represents traffic operations where some traffic
delays are present. Traffic delays may be longer for short peaks
within the peak hour. No excessive backups of traffic wil I occur.
Perceived by drivers to be tolerable operating conditions during the
. peak hour.
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The capacity analysis was based on methods contained in the Hiqhway
Capacity Manualll and in the Interim Materials on Hiqhway Capacity.21
To provide a minimum of Level of Service "0" operating conditions along TH 5
in Chanhassen, it is recommended that TH 5 be upgraded to four-lane divided
arterial standards, and that al I intersections serving Chanhassen and the
proposed development also be upgraded (Figure 6). Priority ranking is
descr i bed be I ow:
. 1982-1983: The upgrading of TH 5 between New County Road 17 and the
East City Limits, including the intersections, is needed immediately.
Current traffic volumes justify this improvement. The development
forecasted over the next four years would generate traffic which
would overload TH 5 and the intersections causing severe congestion
and very long delays. To meet the forecasted needs, however, this
improvement should be extended into Eden Prairie to 1-494.
. 1984-1985: Widening of TH 5 west of new County Road 17 to TH 41
should also be accomplished. Volumes forecasted for 1985 (16,000-
17,700 vehicles per day) exceed capacity guidelines currently used
by Hennepin County for two-lane rural roads (10,000 vehicles per
day).
Several guidelines for these improvements are also suggested:
. The redirection of TH 101 traffic away from the CBD ring road should
be a part of the TH 5 upgrading (1982-1983). Traffic between the
redevelopment area south of TH 5 and TH 101 North should be directed
along the proposed TH 5 south frontage road (Figure 6, point "A") to
the reconstructed intersection of TH 5 and Dakota Avenue.
Redirection of this traffic wil I remove a significant volume of
traffic from the east leg of the CBD ring road.
. As part of the construction at TH 5 and New County Road 17, 78th
Street should be relocated to the North to provide stacking space
along County Road 17. Depending on which routes are selected by
drivers, the intersection of 78th Street and County Road 17 may also
require signalization (Figure 6, Point "B").
. As TH 5 west of County Road 17 is upgraded, the intersections with
Park Drive and Audubon Road should include turn-lanes. Depending on
the ultimate development patterns and route selection by drivers,
these intersections may require signalization (Figure 6, points "C"
and "0").
4/ Hiqhway Capacity Manual, Special Report 87, Transportation Research
Board, National Academy of Sciences, 1965.
~ Interim Materials on Hiqhway Capacity, Transportation Research Circular
Number 212, Transportation Research Board, National Academy of
Sciences, 1980.
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i'-....._______ ___
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y
CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PROJECT
CHANHASSEN,
Figure 6
RECOMMENDED ROADWAY
SYSTEM IMPROVEMENTS
( 1985)
~North
Scal.: 1- 2000'
First Priority (1982-3)
Second Priority (1984-5)
.. ~+:III~'"
'---LJ
MINNESOTA
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Roadway System Needs (Post-1985)
Improvements recommended for the pre-1985 period wil I adequately serve
traffic expected in that period, but with no margin of capacity for further
increases in traffic. Continued development in Chanhassen wi I I generate
additional traffic on TH 5 and crossing TH 5. The level of traffic
expected in the years 1986-2000 is greater than can be served at even a
marginal level of service by the combination of TH 5 and the existing at-
grade intersections. Due to the location of the proposed development rela-
tive to the opposite ends of trips to and from the development, the traffic
loading will be concentrated on the intersections of County Road 17, TH 101
and Dakota Avenue. These three intersections, if upgraded as recommended
above, wil I be loaded to their tolerable limits in 1985. In 1985, these
three intersections would operate at Level of Service "0" during peak traf-
f i chou r s .
If no roadway improvements are made beyond those recommended above, peak
period traffic operating conditions wil I deteriorate as development occurs
in the Chanhassen Redevelopment Area. An analysis of year 2000 traffic
operating conditions at key intersections was made assuming no further
improvements (Table 8).
TABLE 8
TRAFFIC OPERATING CONDITIONS
RECOMMENDED 1985 ROADWAY IMPROVEMENTS/YEAR 2000 TRAVEL DEMAND
Vo lume to Level of
Location Capacity Ratio ( V/C) Service
TH 5 and County Road 17 1.08 F
TH 5 and TH 10 1 1.21 F
TH 5 and Dakota Avenue 1.42 F
Volume to capacity ratios greater than 1.0 suggest that the congestion and
delay wil I be present over a period of time longer than the peak hour.
With travel demand expected in the year 2000, severe congestion and delay
would be present for a two to three hour period during each of the two peak
flow periods of the day.
The problem is related to the high demand for travel in an East-West direc-
tion along TH 5 which crosses the high demand for travel in a North-South
direction, mainly along TH 101. If satisfactory traffic operating con-
ditions are to be maintained beyond the year 2000, additional roadway capa-
city must be provided. The selection of the most appropriate way of
providing the capacity needed to serve expected traffic demand wi I I require
detai led analysis of engineering feasibility, social, economic and environ-
mental impacts, and traffic service needs.
21
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This analysis also identified a need for additional traffic carrying capa-
city along TH 101 north of TH 5, basically between TH 5 and Town Line Road.
This need is generated by the high level of trip making expected between
the Redevelopment area and residential areas between TH 5 and TH 7, west of
1-494. By about 1990, this part of TH 101 should be four lanes wide with
turn lanes. Beginning immediately, access to TH 101 should be limited to
major cross-streets in order to preserve its capacity.
Coordination with the Minnesota Department of Transportation, City of Eden
Prairie, Hennepin County and Carver County should begin immediately to
faci litate identification and implementation of the roadway improvements
needed beyond 1985.
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LARSON & MERTZ
ATTORNEYS AT LAW
1900 FIR5T BANK PLACE WEST
RUSSELL H. LARSON
CRAIG M. MERTZ
MINNEAPOLIS, MINNESOTA 55402
TELEPHON E
(612) 333-1511
OF' COUNSEL
HARVEY E. SKAAR
MARK C. McCULLOUGH
March 2, 1982
Scott A. Martin
Executive Director
Chanhassen HRA
Box 147
Chanhassen MN 55317
Re: HRA Accounting Services
Dear Scott:
Both the HRA board and the City Council have approved the concept
of utilizing the city treasurer's office for HRA accounting functions.
Enclosed you will find our proposed draft of a joint powers
agreement authorizing the city treasurer to serve as HRA treasurer.
The duties of the treasurer are set forth in Section 3 of the
agreement. Section 4 concerns the purchase of property. While it
is unlikely that any significant amounts of property would be
purchased in connection with this agreement, state law does
specifically require that joint powers agreements provide for the
disposition of property acquired as a result of the agreement.
Section 6 defines the costs which are to be taken into account in
establishing the annual fee for the city treasurer's services.
Motor vehicle costs are included because accounting records are
periodically delivered to the Ramsey County data processing consortium.
Section 7 allows the City to unilaterally adjust the annual fee if
the City Council finds that the previously established annual fee
does not aCOlrately reflect actual costs. If the HRA is not in
agreement with a proposed interim adjustment, its alternatives are
to negotiate with the City Councilor elect to terminate the
agreement in accordance with Section 8. Section 8 allows the
agreement to be terminated at the end of any calendar year. In
addition, the HRA could elect to terminate the agreement upon
receiving notice on an interim adjustment in the annual fee.
In the event of such a mid-year termination of the agreement, the
annual fee would be prorated according to the number of days
remaining in the year. For example, if the agreement were terminated
effective June 30, 1982, the HRA would have to pay one-half of the
1982 fee.
cln r~~ ri ;;}Jt~A~SEN
p....,. '.
n.r.... '. :_1 : ~..i
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CQMMUi;:-~'{ [:' d h,t. 1T DEPT.
.
.
Scott A. Martin
Chanhassen HRA
March 2, 1982
Page Two
If you find this draft to be in order, it should be submitted to
both the HRA board and to the City Council. In each case it
would be necessary to obtain a resolution approving the text of
the joint powers agreement and authorizing the Mayor and City
Manager (or the Executive Director and Chairman, in the case of
the BRA) to sign the agreement.
When the joint powers agreement is submitted to the HRA board,
one housekeeping matter must be disposed of. Article II, Section
5 of the HRA's by-laws currently provides in part: "The secretary-
treasurer shall sign all orders and checks for the payment of
money..." The HRA should take steps to amend the by-laws by
deleting the words "secretary-treasurer" and substituting the
word "chairman." This change should be made by a resolution of
the board approved by at least three of the members of the board.
If you have any questions, please call.
Very truly yours,
{l~-;;7ME:! ~
Assistant Chanhassen City Attorney
CMM:ner
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JOINT POWERS AGREEMENT
FOR
ACCOUNTING SERVICES
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THIS AGREEMENT, made arid entered into by a ~ among the
Cit~ of Chanhassen (the "City"); a Minnesota munici~f corporation,
and the Housing and Redevelopment Authority in andjfor the City of
Chanhassen, a public body corporate and politic (the "Authority"),
established pursuant to Minnesota Statutes, 46~~4ll-462.7ll:
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/' General Purpose. This Agreement is Inade and entered into
pursu/lnt to Minnesota StatuteS Section 47l.5~~ The general purpose
of th~ Agreement is to provid~ for the joint! use of the ac'Counting
and f~nd management services/provided by the office of the City's
treasurer. /-
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, Establishment of O~fice of Tre{asurer for the/ Authori ty.
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The treasurer. of the City,/as appointed by the City~ from time to time,
is hereby\designated as the treasurer/of the Authority.
./
III.
'b /r~""~~ .
. / Purpos.e_alliLOb:}ec.t--of-the-E.s.t.ablishment-o-f-.t-he-Off-i-ce--o-f-'
Treasu:r:er-..for..the_.Autho.r_i-t-y__ The purposes and obj ect of the
establishment of the office of treasurer for the Authority are to
render the following services on behalf of the Authority; ;).1 o-<-.(...'rl_____
f..",d, m.s. l!'?I.S-C, ).:..t;
<t.~ To keep accurate accounts and records of the receipts and,
C'Y) expenditures of the Authority~ including a general journal,
a cash receipts ledger, a check register, a payroll register,
a general ~dger, a revenue ledger, an expenditures ledger,
a bonded debt ledger, an interest payable ledger, and such
other subsidiary ledgers and records as are deemed necessary
by the City's al,!di ting_ac_cqunt;..ants L.-9.L..9y__the_.off ice of.the
S~ate Auditor.~' (One or more of the foregoing journals,
ledgers, .... and registers I)la:~ be combi-ned in/fl!~ reasonable
discreti;~n""ff ~hB t\:ga.sure\, ~!e'~ec~ted/in ac'cor.dance wi ~
e~eral_!.Y_~5:'Cepted accountui'<J prlnclples._)..--. ._-~-- ~
2~
To prepare at periodic intervals, but not less frequently
than annually, balance sheets and financial reports for each
fund of the Authority and for the Authority as a whole.
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,.Ih t. C '~."'- e;{,,-. #~I .......~ "")
To issue checks and drafts for the Authority under the
signature of the Mayor and Treasurer, upon approval by
the Authority of specific accounts payable and other
budgeted expenditures.
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To maintain bank accounts at such depositories as are
designated by the City from time to time and to deposit
therein all receipts and revenues of the Authority.
To comply with whatever lawful orders are given to him/her
by the Authority regarding the use and disposition of its
receipts and revenues.
To invest idle funds as authorized by law.
,/
To receive and safely keep all monies belonging to the
Authority, and promptly enter in a book provided for the
purpose an account of all monies received and disbursed
by him/her as treasurer, showing the source and object
thereof with the date of each transaction.
To payout money only upon the written order of the
Authority's executive director and chairman.
To exhibit to the Authority's board of commissioners or
its executive director the accounts, books, and records
of the treasurer of the Authority upon request.
To deliver to his/her successor all books, records,
papers, and monies belonging to the Authority.
To immediately after the close of the calendar year make
out and file with the Authority's executive director for
public inspection a report of his/her balances, receipts,
and disbursements by funds for the year.
To appoint a deputy treasurer of the Authority~for whose
acts he/she shall be responsible and whom he/she may
remove at pleasure.
In the case of the treasurer's absence from the City or
disability, the City Manager may designate a deputy
treasurer, to serve as treasurer of the Authority during
such absence or disability; and such deputy may discharge
any of the duties of the treasurer of the Authority.
IV.
Purchase of Property. The Treasurer shall purchase such
accounting supplies as are reasonably necessary to carry out the
purposes of this Agreement. In the event of the termination of
this Agreement, the various books, ledgers, registers, files and
other records which have been maintained by the treasurer pursuant
to this Agreement shall be surrendered to the executive director
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This Agreement executed by the parties hereto on the
date shown herein.
Dated:
Dated:
-5-
CITY OF CHANHASSEN
By
its Mayor
By
its City Manager
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF CHANHASSEN, MINNESOTA
By
its Chairman
By
its Executive Director
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of the Authority and shall upon the effective date of such
termination become the property of the Authority. Any other
property acquired by the treasurer pursuant to this Agreement
shall be sold and the proceeds distributed to the parties in
proportion to the percentage of their contributions to the cost
of operating both the office of the City's treasurer and the
office of the Authority's treasurer.
V.
Employees. The City may employ from time to time such
person or persons on a full-time basis or on a part-time basis
as shall be deemed by the treasurer to be necessary for providing
the services described herein. Such persons shall be considered
as employees of the City while performing duties pursuant to this
Agreement. The City shall provide such employees the usual benefits
accorded other employees of the City having similar status and shall
provide worker's compensation insurance with respect thereto.
VI.
Payment of Non-Salary Operating Costs. Operating costs
shall include all non-capital costs for the performance of the
treasurer's duties under this Agreement, except salaries, including
but not limited to the rental of office space and office equipment;
gasoline, oil, lubricants, parts, repairs, labor and services for
any vehicle employed in connection with such duties; data processing
and computer fees; and any other.costs attributable to such employment.
In the case of services furnished hereunder by the City's
treasurer through December 31, 1982, the City shall prepare an
estimate of the annual operating costs to be incurred by the treasurer
in performance of this Agreement, and such estimate shall be submitted
to the Authority in the form of a bill. The amount of such bill shall
be paid in two (2) equal installments on the following dates: June
30, 1982 and November 30, 1982.
On or before the first day of September of each year, the
City shall prepare an estimate of the annual operating costs to be
incurred by the treasurer in performance of this Agreement during the
next calendar year. Such estimate shall be submitted to the Authority
in the form of a bill. The amount of such bill shall be paid to the
City in .two (2) equal installments on the following dates: June 30
and November 30.
VII.
Payment of Salary and Benefit Costs. Salary and benefit
costs shall include all non-capital costs for the performance of
the treasurer's -duties under this Agreement including but not limited
to salaries and other direct payments to persons for work or labor in
performance of such duties, such as taxes, unemployment compensation,
workers compensation, and insurance benefits paid to or accrued for
such employees.
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On or before the first day of September of each year,
the City shall prepare an estimate of the annual salary and benefit
costs to be incurred by the treasurer's office in the performance
of this Agreement during the next calendar year. Such estimate
shall be submitted to the Authority in the form of a salary/benefit
expenditure budget which details the salary and benefit costs
estimated to be charged the Authority during the next year for
each City employee performing duties pursuant to this Agreement.
If the Authority accepts such charges as presented by the City,
the Authority shall authorize payment for necessary salary and
benefit costs on an on-going basis throughout the next calendar
year on the same payment schedule as utilized in the City payroll
system and benefits program.
VIII.
Interim Adjustments of Costs. The estimated annual
salary and benefit costs and non-salary operating costs for the
performance of the treasurer duties under this Agreement may be
adjusted from time to time on the basis of actual costs incurred
and time expended by the treasurer in performance of the duties
assigned bye this Agreement. In the event of an adjustment of the
operating costs, there shall be furnished to the Authority a
computation of such estimated operating costs. The City shall submi~
such estimate to the Authority in the form of a bill for such
adjustment increases. The amount of such bill shall be paid to
the City in as many equal installments as then remain unpaid pursuant
to Section VI of this Agreement.
IX.
Duration and Termination of Agreement. This Agreement
shall continue in effect until December 31, 1982, and thereafter
from year to year. In the event that a party desires to terminate
the Agreement on December 31, 1982, or on or before December 31 of
any year thereafter, it shall give notice in writing to the other
party hereto of its intention to do so on or before October 1
preceding such December 31.
In addition, the Authority may terminate this Agreement
by giving notice in writing to the City of its intention to do so
within 30 days of having received the City's bill for any interim
adjustment pursuant to Section VIII of this Agreement. In the
event that such notice is given, this Agreement shall terminate
on the 30th day after the City's receipt of such notice, and the
Authority shall irnnediately thereupon pay to the City in one lump
sum the unpaid portion of the estimated annual operating costs as
last billed to the Authority, together with the unpaid portion of
any interim adjustment of costs which was billed to the Authority
more than 60 days prior to the effective date of the termination
of this Agreement, all of which shall be prorated according to the
number of days remaining in the then current calendar year as of the
effective date of the termination.
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CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE' P.O. BOX 147' CHANHASSEN. MINNESOTA SS31 7
(612) 937-1900
TO:
FROM:
DATE:
March 9, 1982
RE:
Funding for Landscape Improvements Around City
Directional Sign
The City Engineer, Bill Monk, has recently been approached by
a member of the "Master Gardener Program" concerning their
interest in planting a flower garden around the base of the
large City Directional Sign located at the northwest corner
of Highway 5 and Great Plains Blvd. (aajacent to the Holiday
Service Station). Mr. Monk has contacted me concerning the
possible use of $100-200 in HRA funds to pay for the cost of
plant materials and black dirt fill. (See attached memorandum
dated 3/8/82.)
Upon review of the adopted plan for the Downtown Redevelopment
Project, I have concluded that such a project is appropriate
within the context of the downtown project plan, which provides
for a "park-like gateway area" at the primary entrance to the
"new" downtown. This project, albeit very small, is a step in
the right direction at a very nominal cost to the Tax Increment
District.
I recommend authorization to expend up to $200 from HRA account
#604 (Rin~-Road Improvement Project) for acquisition of plant
materials and black dirt necessary to establish a flower garden
at the above described location.
Report Attachments
1. Memo to Scott Martin from Bill Monk dated 3/8/82.
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CITY OF
CHANHASSEN
690 COULTER DRIVE. P.O. BOX 147 . CHANHASSEN, MINNESOTA 55317
(612) 937-1900
March 8, 1982
TO: Scott A. Martin, CDD
FROM: Bill Monk, City Engineer
DATE: March 8, 1982
SUBJ: Master Garden Program
A member of the Master Gardener Program has approached me concerning
an area project as a part of their Awareness Campaign. The intent
is to publicize their program with assorted projects for which they
will contribute all labor for installation and routine main~enance.
Their proposal is to plant a flower garden around the base of the
City Informational sign at the NW corner of T.R. 5 and Great Plains
Blvd. The garden area would be approximately 15' x 8' and cost the
City between $100 to $200 for plant materials. City crews would be
responsible for minor site preparation, such as leveling the area
with fill, but otherwise would incur no responsibilities.
If you have any funding source for this type of operation, please
verify and acknowledge so I can respond to the proposal as quickly
as possible.
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