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HRA 1982 03 18 I I I I I I I I I I I I I I I I I I I 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. I I I I I I I I I I I I I I I I I I I ~ 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. I I I I I I I 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 I I 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. I I I I I I I I I I I I I I I I I I I I I I I I I I I 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. .- , 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. I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 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. I I I I I I I I I I I I I I I I I I I 4- 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. I I I I I I I I I I I I I I I I I I I 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 I I I I I I I I I- I I I I I I I I I I 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 -2- I- ..~ I I I I I I I I I I I I I I I I I I EXHIBIT A (Copy of HRA Resolution Adopting Modification No.5) I I I I I I I I I I I I I I I I I I I ... r ) " 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 L',-" V. ..J I .J.. V I 0 ~ _ 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: -2- I I I I I I I I I-- I I I I 8 I I I I I I I I I I I I I I I I I I I I I I I I I 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 -3- -, __vI VL. 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. -4- .. I I I I I I I I I" I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ....._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. -5- Rev. 3/10/82 "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. -6- I I I I I I I I I. I I I I I I I I I I ~ev. 3/10/82 I I Section 2.2 Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: I (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. I I I I I I (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. I I I (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. I (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. I I I I (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. I I -7- Rev. 3/10/82 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. -8- I I I I I I I I I. I I I I I I I I I I -.-.. ...., ""'''''1 v.... I I I I I I I I I I I I I I I I I I I Section 3.3 Minimum Market Value to Be Used In Computing Real Estate Taxes. Upon completion of the Minimum Improvements by the Redeveloper, the Minimum Market Value which shall be assessed for the Redevelopment Property and the Minimum 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. -9- 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; -10- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I .....- Y. ..J / .J.. V / u ~ . . (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 -11- ~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. -12- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ~ 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 -13- -, .- "'" 1lJJL. (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. '. I I I I I I I I I" I I I I I I I I I I THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN By its And its (Name of Redeveloper) By its And its -14- I I I I I I I I I I I I I I I I I .1 I .' 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 -15- EXHIBIT A "SPECIMEN ONLY" "Minimum Improvements" means a 20,000 square foot office building constructed of tilt-up concrete panels and masonry. ',. I I I I I I I I I' I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ~. 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. '. . . 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. / ., I I I I I I I I I" I I I I I I I I I I I" II I I I I I I I I I I I I I I I I I I ~, " IJ~ ~ 1/1 I f"-z.- ~;Jf5 e. c.. ~ 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 " 1.\ 1 1 1 'I 1 1 1 1 1 1 1 . ,I : 1 1 1 1 1 1 1- 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 I I I I l- I 3: " I- >- I t- a::: I..U a.. 0 a:: a.. I Cl I..U CO a:: U V'l I \..U Cl ~ z 3: I 0 -J -J 0 u.. UJ I :I: I- Z 0 UJ I ::> Cl V'l UJ X <l: I l- I- Z UJ ::> CJ I z -J UJ Cl u.. 0 I I- Z ::> 0 :E I <l: UJ :I: I- u.. I 0 I- Z UJ :E I L.U I- <l: l- V") I I o CO 0 OJ ... 0\ ,1 b M 0"\ ~ ..... r-... ~ ~ 0 C'l - ..... ..... ., ;; "'- ..::t 0 .~-~ g ..... (') ~cc.; Lr') ..... .- ';.l-o "::~t: ,7 r-... oJ C'l l/"'\ I=- ..... ..... '" CO CO l/"'\ '" " C') (') 0"\ C'I N CO ~, CO ... :,: ..... ..... ;.. CO CO ." i: L -<: ~ ~ ~ OJ ('") oX III ..... c: 0 ~"'i< If) l/"'\ U ~ ....0:..0 ::l <- OJ C OJ - V '" ~...g E III r>()v _o~ CO 0"\ -a ::I ::I I-< .....U U <:> "' <:> OJ ~ III ... ~ ~ <A- I-< l-o l-o V -a OJ C'J C'J "0 C P.. P.. '" . (f) (f) ,...; ...... U) (f) .r:: 'V III III C U ::I Z c:: c:: I-< ..... 0 -,-i -..-t '" ..,. .. t (f) (f) ~ V ::l ::l I-< OJ ..... ~ ~ '" ...; 2 OJ ..... CJ (f) (f) ...; (f) ClI ClI r:: ~ ~ Q t1l 'll ...J ...J c:: c:: ClI ClI CJl CJl CJl CJl t1l co .- .... -a c:: III co .- ..c U u t:: "m m ~ cr. . IJj u -( t:: 0"\ 0 ::J H "I M :1 0 0 -< ~ 0 0 z ClI I I ~ 0 0 w co 0 0 m ~ r-... r-... 8 0 I I ... l-o C') M ~ 0 ..::t ..::t 15 ::l I I ....; 1fI If) ~ "I C'J It) .... o VI ~ C C ~ ~ E ... a: .. >- .... C ::J o U :3 o > c ... .c ~ L. ~ > .... It) U - c .. E (} ~ .. (f) c: '- :3 - ... a: VI .. Cr-; .. - (; -r~ III ( ...:j /~\'-~":\ ( ~~4~:! "" '- - 0 .... .. o .:Jl .... : .c U ... ~ u .:.:: '-'- o III .c I- h ""U ::J -< >- .... C ::J o U l-o ClI w c:: ClI u ....; .- '" -..-t CO l-o ..... U w ('") C CJl If) H ::l Lf) -a c ClI H 2; l-o ...- co c ~ '" 0 ..c t1l l-o w ~ 0 t1l CJl ::l C t1l ....; 0 ..c ~ 'J U E E ~ .. ~ 2: < ~I -.,.; '" I ,... '" ....; ..c u l-o t1l ::<: '" : "~2 ".0' \, ~ " ~.... :Dl "IL-- ""~..., 1.'Ll l.t.;, ., .. .. '- 2 c " i S :a :> < >- 'i: 5 () ," i: o I " ~,~-~ ") (- STltEETEJl- ANDIlUS C_ ,; 17809 HUTCHINS DRIVE: MINNETONKA. MINNESOTA 55343, PHONE (612) 474-1128 --.-......- I ~EALTORS I ! I I I II I', i I I II I I r' ~ i I II I t Ii'" I I; I , , Ii i / i I Ii I t, I I; I' t- I '; I u 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 . . 'I-' " of': c (, \; 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 BAllI . I I I I I I I I I I I I I I I, I I I I I I I I I I I I I I I I I I I I I I I 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. I I I I I I I I I I I I I I I I I I I '. 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 I I I I I I I I I I I I 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 I I I I I I I I I I I I I I I I I I I I I I I I I '/ I. A. 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[). I I I I I I I I I" I I I I I I I I I I e, 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 I I I I I I I I I I I I I I I I I I I he v. j / J. U / ~ L " 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. I I I I I I I I I" I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 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 I I I I I I I I I. I I I I 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- I I I I I ~ev. j/~U/~L I I I I I I I I I I I I I I I I I I I 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 ,I I I I I I I I I- I I I I I I I I I I To be supplied (a copy of Modification No.5) I I I I I I I I I I I I I I I I I I I EXHIBIT B To be supplied (a copy of standard form of assessment agreement) I I I I I I I, I I I I I I I I I I I I 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. I I I I I I I I I 2. I 3. 4. I 5. 6. I TABLES I 1 2. 3. I 4. I 6. 7. I 8. I I TABLE OF CONTENTS Paqe I . 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 I I I I I I I t I I I I I I 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. I I I I I -1- I I I I I I I , ....~. , , I '/ '. I I I I I I I I I I r": ~ f..-~: 'i , ; 'i f :':1 ~ \ .~ I "1 i ' 'I/-' _, f ! .,,~ I L". ~ ';....--.).::~~,/._.", / '::"../ .' \.'':''''<''<~:'<:\::;.:..::..< .;,,..,,,, /. /" L-)~~ !.;r/': " <:~L~;.;;;.:....;--:.;,;'-";~~~;""';''''' CHAf\H~SSE:~,j ~ ~~':';.'. :.... ,_~ r: T.H. 5 .......-.J :. \.._.....~~::.. / "'\.~... v' ,.,,:..._-, / ,//"/ ....'/......,"- . '-...._-..;.. .; , "~:;/ /' ~. . ,/ : ~/I ,~:",,)"/ ,,/ .~ ./ , . / , \::-.: .." \~ ,...., , ,~~ ~~.. 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I: - .- U 0 (l)*-+- III (l) 0 .- 1Il0 (l) I: +- III 0 l. +- (l) -0 (l) lO I-- E*- (l) ::l -0 I-- lO ::ll-- E lO (l) ::ll-- (l) 1Il-o ....J I: +-I--+-*- CO EOO::-o,- CO I--+--o CO ECO 0::-0 en E ::l .- < lO OO(l)*- ::J 0 I: III ::J 0 (l) I:::J 0 I:::J E -0 III I- ....J IUO::O (/) U - (l) (/) Uo::- (/) U - (/) 0 I: (l) g 0:: U - 0:: I-- -0 -0 "0 l.1.J ro ro lO Z 0 0 0 0:: 0:: 0:: -0 -0 -0 I: lO en lO en lO en 0 0 I: 0 I: 0 I: .- 0:: .- 0:: - 0:: - +- 0:: 0:: 0:: lO en I en I en I U I: I: I: I: I: I: o .- 0 - 0 .- 0 ....J 0:: Z 0:: Z 0:: Z C!) Z - (fJ I- (fJ (fJ 0 - I-- 0:: (S l.1.J C!) Z I II CO Lf\ .. ~ " -7- I I I I I I I I I I I I I I I I I 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 I I -8- I I I I I I I I I I I I I I I I I I I '^ ~~ \ _' .F,:.....( "'~~J \C_...... . '. -.'.. ......... j '",;" ~ ,- -.' ,-,! " /y' -<'~~:' .~ ~. "l ~ C'> I "'''/'- , . ..f <" j ,I" . .../" I ". .J!:; "'1' I:' ,:,-0,.. :~::;.:</-'\ ,...''''':'" !.;{'i": ~.i" .:-...-;.-------.... ......... 'i.4.:\,' ~:::'~, "'", , ' / , -_.,-, . " '" , I 1;'; ~)"''""' fi~ Ti', .'.:[5fQ:h'.. "". .'... . <'8''-' )' I : . r;" I -'''If ., I . j'" ..-.....- -. "-,,. . '-', ,'- -;"':":':-:. , .~.. "', /" . '''" /J' (.... ,J'/ . " .".' ':':;',,7/ . /.'" / " ;.~ .'...... CHANHASSEN DOWNTOWN REDEVELOPMENT PROJECT APPROACH DIRECTION DISTRIBUTION Figure 2 ~North Scale: 1. 2000' CHANHASSEN, MINNESOTA ffilll~'" I I I I I I I I I I I I I I I I I I I 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). -10- I I I I I I I I I I I I I I I I I I I 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- I I I I I I I I I I I I I I I I I I I j' , ?:" ! ~ ~i ~,' '4,: \,~:).. 'mo'o' ,A , ~ " ! I.," '\- :~~. )I , w" 'I V ',-/ , I iP :/ , I, I ': r. ':',1 ... ", I , ~ I ' "'O""":'~..' ~"I" j -.'. "". ' . ~ <~x:/-'\\ / , '~:'~_._... ::>-- 460 /-':-:-/' /-. 3300 L.};'.';" r.;r!: '" '\:~~;~;.:.;:,,;;.;~;~---'- ./ .~.-;..:.,;;,>/ ,4,",AAI'\,- ~ II ~,....wv' ~ .~..._~ / :';)7C '- -t , ' ; ......--J (;:;1 : -. : :~; i, -' / 1/ "./ '-"'",-~~, .,'"".... //<' "'--l--:.~ ./,>r/ ..~ )...::</"a" >(' "n__<: /' , -'\~~--'. ....". "~.... 1 ''-",,- / /-~ <-::-'l'-_~0~'_"'-'" / '-=';'. ..._---~~.-,' - --.-" { t, /-.'~.:l~ '''''.1 ...::::.. I Z:~fG '-.~ ~. -; ,". ~ ...... N/A / ., i ~.~ ",~ "-' / .......... if 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 I I I I I I I I I 1800 .1.6,000 I > '\ \ '" I I I I I I I I I I .f ! ~.. '1 . \ f"; ~ i ,~~.~ 1 J. .. -. - 'I i\ j .~ ... ~ .. ;....-.;..., .- ,~;"". ' "-.~.;:::-;.., ' ,/'. '. '-... ,_...~, i ""-.-"-,', ~'- . J;'r I.:::;"! ;_1.2{: f... J:' ~..- . ,'.~.~,.,.,.,.:'... "~'... ~ . .. . . -,' '" - , 1 /j' . ~/ '. ..,' - t 41.....:..:.......... ! . ; ,-I ./ :J . '-.-- ~!.d!lt! :. ~ ~;...... ." '. ",3. n.. .'0 -..'''''' 2800 ...,~ .'~ ''''~'.:", ;)?c17 ,200,:0,: 17,700 :,....-J \ .(' ,..-....~./ ... ',:......... "':"'_-" "," ~...: ...<;'~--' ....".~.... 1000 2800 .,3300'-'--'. ,//3300 ~,. /' / '.--....', .-......-.-f ., /J<// f../ ~: .;// ~ "'y/ ~. '-::;"," ) ;. ;:)/~6~' 2300 ~,- .- ."':. '.':""l . i ('''- ~.:;. '; C' ", \v.r~1 '. "~':__' . , /~-::. n" --...,....... -" .~," .- 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' I I I I I I I ( I I 7100 2J ,300 I ) \ ". I I I I I I I I I I ;V , I ~., ,:~ I I I ~ "" , " '-..--<: > ~ ":.......... " '---\ 2100. : 3900 . ...-~,.., , .' """---,1" ;; .~ ~; ~';~// .t ... // .: , ~r/"..~>"~/ /""- >' / ,\, "(,;;1::, I. , , ! ~\ :1 ..! \,~)~"-:' ~ ~ \;) -;.1 I I':: '. -, .(:.... . ! ;. ,'" '.. / ~>.~, / . I -, 1:/,'. ", (> ,'" ,. , -,{-z/7,;:{ "'-"~=,',',~J:. fer-:'- >" . ~;'-"'_\'" : " ....'1, :.<- ,- . .~" .; ~. ...~"~-'">"'~! '..-,,"'" .~ '. "'~ ;; , ~'?:1.,:. " .;..,; :,1 . ,:, -.' .' '''-1 ;r~-j\ ,;, ,.~'" '. ..' :.u.c}-. C,'.' ~;,." ....," :; "",': '... , . :~; ! '. .... ,-,,~(:,~ ~,~,,:<,,~. "-"..~ ." -' , .~~. :t:. ~ ~ V · '-- ;'::E~!lf; ;, A 4 J," 1 .~ ...;..';.::~~:: .-.\ / ",""'- / / \ L..}~t-" ..... ",'\ ,'".. 1~.900 ':~;,~;..c:;:':,:,::,;'1'7, 1 00 C H ;7,3oos f~: \ 10,000 :)>(22,200 ~,,',,24,900 -':<-~~ .... .. ". ^ .~ ...""-,.-:~,,, " ....-=' .......... /' .,/'/ /' ", ';' t';':::;; .. ' .' ....--.-.., '," 0' '. . , .' : ..- > ' ...,........... ~.~.....- .._.....~ ,.....:-.....-. ~ I.,. ('-..~;i; ',:-'1...:.:" ...... I ' ;?.t:~ '~~_. I..::'...,..,:"... ..... . .. f ". "'. '-'-. : -t.- jf . \~~! "/,':,=~, , .... i '. /.,. " '. .~~;, / <'.~' , ::."..'" ',',:':": ...-...... CHANHASSEN DOWNTOWN REDEVELOPMENT PROJECT CHANHASSEN, 2000 AVERAGE DAILY TRAFFIC Figure 5 't North 000 000 Site Generated Dally Traffic Total Average Dally Traffic Scale: 1- 2000' MINNESOTA ::~:III~'" --.1........."'"' I I I I I I I I I I I I I I I I I I I 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. 15 I I I I I I I I I I I I I 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. I I I 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 I 16 I I I I I I I I I I I I I I I 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. I I I . 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. I 17 I I I I I I I I I I I I I I I I I I I I 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. 18 I I I I I I I I I I I I I I I I I I I 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. 19 I I I I I I I I I I I I I I I I I I I i .-j c:,"',.. "~'..1"'.."'"'' ,. '. ' . -~ ;;; .:,' .. . .,-.. -~ ','.:;.:, ~ - ~ - {'....4...' ..... .. ;;: L' ,-I ;/ <...J;.,~ !.;f~;~ . / .- ,_.~;;,--_#-,,'.'~"-;;;';/ '. ,,,:.'HA:'.~'H..~.' :D....~~ ".'" ~C. . "~"" : :~. ,. ,_..- " .i'- .'~ -.. " .' '., i'-....._______ ___ / '\ , '. , " .. ,C ,.._-<:.:~. > '--- " ----'-~ -~ ....:~.::;.. : '7' 'w ,... :. ~'f'; " \ . \/ ....". ...... ....,.. "~_h. " / '. . ,t ~,.~..,....,' . "~._.r"-' f' 1_, =t'~~ (.~~ j.f~..~..f:::.. " - "." , ! .' ", .... " 'I' '. Ii '. "".' ....... 't.' '.., , - . ~ ., - , . ; /' ;'" :" .~ '.. ....' ",..-, -,,,,-..' 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 I I I I I I I I I I I I I I I I I I I 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 I I I I I I I I I I I I I I I I I I I 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. 22 I ~ I I I I I I I I I I I I I I I I I I '5 << \ 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 I. .,'\ \ '~ 1382 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 enc I I I I I I I I I I I I I I I I I I I ., I I I I I I I I I I I I I I I I I I JOINT POWERS AGREEMENT FOR ACCOUNTING SERVICES I \ / 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: I.~~ I // " /' 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. /- \ \ \ ~ I~ / , Establishment of O~fice of Tre{asurer for the/ Authori ty. I 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. r ~ ;. '-I J , '5. J I ~ 6,. 7. / f 8. , \ 9,. i / 10. , 11. , \ f ! 1'2. ( t t jf ' 4 0l:A ^_~ N'.'__'."~ t..",...J.. ~/.....l L,~ ~ T~~"");' l::. . ,.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. I. I I I I I I I I I I I I I I I I I I 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 -2- -I I I I I I I I I I I I I I I I I I I # 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 ~ I. I I I I I I I I I I I I I I I I I I 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. -3- -I I I I I I I I I I I I I I I I I I I ~ 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. -4- I I I I I I I I I I I I I I I I I I I ~ 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. I I I I I I I I I I I I I I I I I I I 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. .J/ITl2..~ ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( err ( "" 0 """:-1 "m'-fCiT~1 .--r;:r'.TT.TTTI .,r"T"i"r;ci u1"]]TIIu u STwTw~:u;ul WTv'o"I'"rt:Ti, "lill" " ;'l"'T'''Nl;-G", ., -~&- -~, -I -;L:-,:,::l~~ :';l--:;1-::;--.~, "'1 NI -", . ., J i;;! to. .:.. N _ -' ~,I (:. I .: I C" I l': I l; r U t-J - 0 ~ tJ "" 0' ~ _ f W N, _I (5 I '" ..) I "j .,.. ~, ... W, N ~ I ,_) (,l t'l, "'-11 " l,1 ... () ~.J _ I 'J! 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