HRA Agenda 03-20-1996 SpecialAGENDA
SPECIAL MEETING OF THE
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, March 20, 1996 - 7:W p.m.
City Hall
HRA MEMBERS: Chairperson AI Larson, Vice Chairperson Brad Barger, Everette
Ellison, Tom St. Hilaire, and Roger Carlson.
MCP MEMBERS: Chair Bob Bowen, Vice Chair Lois Maus, Secretary Bill Endres,
Treasurer Merrill Busch, Clint Herbst, Fran Fair, Dick Frie, Linda
Smith and Al Larson.
STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak.
GUEST: Barry Fluth.
I. CALL TO ORDER.
2. CONSIDERATION TO REVIEW RATINGS OF THE RFPs FOR SELECTION
OF CONSULTING FIRMS TO INTERVIEW AND MAKE PRESENTATIONS.
a) Set interview and presentation date.
3. 90) P.M.- CON SIDERATION TO HEAR PRE -DEMOLITION DEVELOPMENT
AGREEMENT OPTIONS AS IT RELATES TO THE II I WEST BROADWAY
PARCEL.
4. PROJECT UPF)ATES:
a) Eminent Domain project
b) Prairie West Plus development
C) Carlson riverfront property
i. CONSIDERATION TO APPROVE THE MARCH 6, 1996 HRA MINUTES.
6. OTHER BUSINESS
7. ADJOURNMENT.
MONTICELLO DOWNTOWN/RIVERFRONT REDEVELOPMENT STUDY
MONTICELLO COMMUNITY PARTNERS/HRA
SCORING SUMMARY - PLANNER PROPOSALS - MARCH 20, 1996
Key
FIfS1
tl --
Fourth
Rater
Team
Understands Public
Understands Experience Traffic
Market Urban Finance
Overall Fee Out of
Score
Name
Name
Project Scope Process Monb Unique towns
like Engineer Consult Design Cons
Quality Range Pocket
Character Monti
of Present Exe
TOTAL RAW
HolsKegl
10�
1071
991
94
� g0!
94 $80,650.590,20[ 54,000
824
SCORE
Q�_
DSU
I 113
l 106
_
93l
f�}�I__
:1
88
___
�
72
88' BS 53
72' 72
94,$76.530 $4,500
85 $79,900.59240[ $7,000
803
762
Sand Wack 83
82
_
71
_94
Sol
78 60
77_
557,8_00_ 1 $0
692
NWWT
86
901
91
66
60
59 63 62,
73
J".0i4,a001
649
BRW
88
77
67
70
65
68 63 55
70
__ _
$77,900 , $2,000
622
Heritage
B8 17-7m
73
57
33
46 66 34
67
584,000. $75,70[ $7,000
557
MDG
27
23
23
19
19
17 20 17
27 $78,000. $83,0OC $11,700
192
AVERAGE
SCORE W/0
96
91
85
80
69
69 71 61
80
701
MDG
AVERAGE
Hois Kegl
8.9
8.9
8.3
7.8
6.8
6.4 6.3 7.5
79
687
SCORE
Camiros
9.4
7.8
8.3
7.3
7.8
7.2 6.9 4.4
7.8
669
AWARDED
DSU
88
7.8
8.0
7.8
80
60 6.0 5.9
71
63.5
BY INDIVIDUAL Sand Wack 6.9'
8.8 ,
5.9,
7.4'
6f
6.3 63' 50'
6 5
57 7
NWWT
7.2
7.5
7.8
5.5
5.0
4.9 5.3 51
6.1
541
BRW
7.3'
6.4'
5.6'
5.8,
5.4'
5.8' 5.2' 46
5.8'
518
Heritage
7.3
7,8
6 1 *
4.8,
2.8'
3.8 5.5' 26'
56'
46 5
MDG
2.3
19
1.9
is
1.6
1.4 1.7 14
2 3
160
HRA AGENDA
i, MARCH 20,1996
1 I I�iti 1 1 1 +:. ' l' 1�' 1! 1l 1 1I. " 4- Iwo i . 0111yl -P . 1 1Pill I a l ! 01•
1 1 T7 :ll. •. l:
On March 6, the HRA adopted a resolution finding the I I I West Broadway property
occupied a structurally substandard building and authorizing a Pre -Demolition
Development Agreement between the HRA and the Barry Fluth (the "owner"). The
motion was approved subject to execution of the agreement by the owner.
Mr. Fluth received a copy of the agreement prior to leaving on a scheduled out-of-
town commitment the week of March 4. Upon return and review of the document
by his attorney, Fluth was reluctant to execute the agreement because it removed the
parcel from the open market for a 45 -day period or perhaps longer.
Upon discussion with the IIRA Attorney and agreement of the HRA, the agreement
has been modified to read "the HRA and Fluth agree to negotiate their best efforts
and the HRA agrees not to stand in the way if Fluth has a buyer". Additional
options to consider are a right of first refusal or offer of a purchase option.
` Upon advising Fluth of the proposed modification, he inquired of the HRA's interest
to purchase the property as is.
informed Fluth of the HRA's position of previous acquisition options: Carlson's
riverfront property and Johnson's warehouse. HRA not opposed to project ideas;
however. HRA will consider purchase of properties following completion of
Riverfront/Downtown Study/Plan and Tax Increment Proforma. If the HRA
considers the Fluth property "an exception", acquisition could not occur until after
modification of the Central Monticello Redevelopment Project Plan to include or
identify the parcel within the plan. this process takes 6 to 9 weeks. Therefore, staff
encourages the execution of the Pre -Demolition Development Agreement which
would allow the [IRA a three-year window to include the parcel within a potential
Redevelopment District and would allow the immediate demolition of the
condemned building.
Enclosed is payable 1945 and 1996 estimated market values of the parcel. In a
conversation, Mr. Fluth suggested a purchase price of $500K) and the HRA
demolish the condemned building. This by no means was a firm offer.
Page I
HRA AGENDA
MARCH 20, 1996
Additionally, the average estimated demolition bid obtained by Fluth was $I 6,0M.
It is my understanding, Mr. Fluth has a replacement settlement of $2(N AX) for the
condemned building (unconfirmed).
B. Alternative Actions:
A motion to approve modification of Pre -Demolition Development
Agreement: The HRA and Fluth agree to negotiate their best efforts and the
HRA has right of first refusal. Subject to Fluth's execution of the
Agreement.
2. A motion to approve modification of Pre -Demolition Development
Agreement: The HRA and Fluth agree to negotiate their best efforts and the
HRA agrees not to stand -in -the -way if Fluth has a buyer. Subject of Fluth's
execution of the Agreement.
3. A motion to approve an offer of a purchase option in the amount of
earnest money in the amount of , not -to -exceed months
subject Fluth execution of the Pre -Demolition Development Agreement.
" Ll . V s-., c W- A -, - o c Q , ,. tea►. 4,� `� �.. u u o
C. Recommendation:
Remember, the original intent of the resolution was to allow the IIRA the option
to include the parcel in a potential Redevelopment District if the results of the
study/plan so recommend. This without acquisition. If the HRA considers an offer
of a purchase option, recommended purchase price for raw land is $34,770. Ten
percent above the 1996 payable GMV on the 9,405 sq R of land less $1,430
remaining balance of the special assessments.
D. $upooning Data.
Tax/parcel information and revised agreement for Alternative No. 2.
C Page 2
PARCEL IDENTIFICATION
I I I WEST BROADWAY
MONTICELLO. MN 55362
PID# 155-010-052071
FLUTH. BARBARA A.
18267 197th ST
BIG LAKE, MN 55309
PAYABLE 1995 ESTIMATED MARKET VALUE $131.90X1
ASSESSED VALUE $4,426
TAXES $5.028.(14
ASSESSMENTS: $ 41.00 86((X)
$ 31.98 80111 77 -STREET IMPROVEMENT ($109.48 RB)
$275.26 9(8)11 88-STREETSCAPE ($1,321.20RB)
$ 69.08 95311 '94 DELA UTILITY
TOTAL $417.32
PAYABLE 1996
SITE 9.405 SQ FT EMV $ 32.9(X) PLUS 10% $36.190
BUILDING 6,510 SQ FT EMV $ 94.400
TOTAL EMV $127.30()
DEMOLITION BID ESTIMATE -$160H)
INSURANCE BUILDING REPLACEMENT - $2(10.(8X)
BARRY - $50.000
f
PRE -DEMOLITION DEVELOPMENT AGREEMENT
THIS AGREEMENT, dated this of , 1996 by
and between the Housing and Redevelopment Authority in and for the City of
Monticello, a public body corporate and politic under the laws of the State of
Minnesota (the "Authority") and Barry Fluth (the "Developer"):
WITNESSETH:
WHEREAS, the Authority desires to promote development of the property
described as:
Lots 7 & 8, Block 52, except the southeasterly 16.5 feet of the southwesterly
90 feet of Lot 8, Original Plat addition in the city of Monticello, County of
Wright, Minnesota
(the "Property"); and
WHEREAS, the Property is currently occupied by a structurally substandard
building (the "Building") as defined by M1nn an _- StaLU u, Section 469.174, Subd.
10(b); and
WHEREAS, the Developer may develop the Property ( the "Project"); and
WHEREAS, the Authority desires to assist the Developer in development of
the Property, provided that a satisfactory agreement can be reached between the
parties to establish the type and level of public assistance to be provided by the
Authority to the Developer with respect to development of the Property.
NOW, THEREFORE, in consideration of the mutual covenants of the parties
hereto, IT IS AGREED between the parties as follows:
Pursuant to this Agreement, the Developer will demolish the Building
and remove any debris in accordance with all applicable laws,
ordinances, rules, and regulations.
Contingent upon successful negotiation of:
(a) Terms and conditions concerning the type, scope, and timing of
construction of the Project by the Developer and of any public
improvements to be constructed in connection with the Project;
(b) A statement of the nature and amount of any security to be
furnished to the Authority to protect its financial investment in
the Project before and alter completion of the Project;
(c) Types and amounts of assistance to be provided by the
Authority to the Developer; and
PREDEMO.ACR: 311WN Pogo 1
(d) Such other terms and conditions as may be agreed upon by the
parties, the Authority will provide such assistance as has been
agreed upon by the parties and the Developer will undertake
and complete construction of the Project, all as set forth in a
definite contract to be entered into by the parties.
3 The parties shall use their best efforts to successfully negotiate th� moo/
terms and conditions described in paragraph 2; provided, however, o "
that nothing in this Agreement shall prevent the Developer from
selling or negotiating to sell the Property to any other person or entity.
If negotiations between the parties are not successfully completed
within 45 days of the execution of this Agreement, the obligations of
all parties to one another shall terminate and neither shall incur any
obligation to any other, unless both parties agree in writing to extend
the term of this Agreement.
4. During the term of this Agreement, the Developer shall provide to the
Authority the information the Authority reasonably deems necessary
to evaluate whether and how to provide the assistance contemplated
by this Agreement. Such information may include, without limitation:
(a)
a preliminary design proposal and a cost analysis projection for
the design and construction of the Project. The proposal shall
show the location, size, and nature of the Project, including floor
plans, outline specifications, and other graphic or written
explanations of the Project, shall be accompanied by a time
schedule for all phases of development, and shall show and be
compatible with any public improvements to be constructed
adjacent to or as part of the Project;
(b)
other preliminary economic feasibility studies, income and
expense projections, and economic information;
(c)
a Project financing plan that shows the Developer's ability to
finance the Project and that the Authority's investment will be
protected;
(d)
documentation identifying the legal entity constituting the
Developer, the identity of the Developers principal owners, and
the legal relationship of such principal owners; and
(e)
information or financing statements that the Authority may
reasonably request concerning each person or entity comprising
the Developer and evidencing the financial responsibility of
such person or entity and the nature and extent of such person's
or entity's financial interest in the Developer and the Project.
PREDEMOAOR: 31IMM Page 2
i
5. It is expressly understood that the Authority's provision of assistance
and the Developer's undertaking and completion of the Project is
subject to the determination by both parties, in light of all the facts
and circumstances, that suck: actions are in the best interest of the
parties.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and delivered as of the day and year first above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
BARRY FLUTH CITY OF MONTICELLO
By.
Barry Fluth Its Chair
By.
Its Executive Director
STATE OF )
AS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1998, by Al Larson and Olive Koropchak, the Chair and
Executive Director, respectively, of the Housing and Redevelopment Authority in
and for the City of Monticello, on behalf of the Authority.
Notary Public
STATE OF 1
)SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1998, by Barry Fluth, an individual.
PREDEMO.AGR: 3I IMM
Notary Public
Pogo 3
KENNEDY & GRAVEN
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BY FAX AND MAIL
T`- & Piw1Oo"
T. J.� S.L1m,
March 11, 1996
Olive Koropc.hak
Economic Development Director
Clty of Monticello
P.O. Box 1147
Monticello, MN 55362-9245
RE: Acquisition of Katunarek Property
Dear O1Ge:
Enclosed for your information is the resurne and cover letter of John Farrell of Appraisal
Associates. Unless you have any objections, we would propose to retain Mr. Farrell on the
14RA's behalf in connection with this project_ Please call to conium whether Mr. Farrell is
acceptable to you.
This is also an update on ft status of the title commitment. Wright Title Guarantee Co. has
indicated that it will provide me with a title commitment by the end of this weeit, Friday, March
15. If l do not receive the commitment by that date, t wtu tvttvw up .vith phone calls until 1
receive it. Our objective is to ftle the condemnation within two weeks after receipt of the title
commitment.
Lastly, this will confirm my understanding that Conworth, Inc. is acceptable to the HRA as a
relocation consultant If this is not the case, please let the know immediately. I propose to send
a notice -to -proceed letter to Conworth this week.
Sincerely,
Corrine H. Thomson
Enclosures
cc: Steve Bubul (w,4o encs)
�y 1
Die 90Vd 01co4cCelo-01 M3AVM!) V AOHNNEIN-NOMd I9.C1 Do - II -MVM
L
i
P
6 March 1996
Ms. Corrine Thompson
Kennedy and Graven
470 Pillsbury Center
Minneapolis, MN 55402
JOMN Q FAR U!LL
ar~ a.e.a Ampaiw
oAIro moors
M a to L=1 an
00074M
Re: Monticello SBA Project
Dear Ms. Thompson,
In reply to your inquiry, I am attaching a copy of my resume
and state appraiser license for inclusion in your discussion
with the City of Monticello SRA on the referenced matter.
My fee for appraising the property being taken by the city
will be $300 for a typical VW single family appraisal. if
any conferences are required after the completion of the
report, billing will be at the rate of $40 per hour. Court
appearance will be $250 per morning or afternoon session.
Thank you for keeping me in mind. I look forward to working
with and for you.
Sincerely,
oie aowe otes�cea�s�a� Menw+�o a +►atKwsrwose ese� so-i�-evw
Quafificadons of John C. FaneH
CerWed Goner l Reel Property Appraiser
Dated: 1 January 1996
Business Address: 6001 Lone Oak Road
PO Boa 176
Rockford, Minnesota 55373
Telephone: 612-477-4829
Fax: 612-477-4863
Minnesota License • 4000219
Education:
State University of New York Community College with an
Associate Degree in Business and Accounting.
Rutgers University, Princeton NJ. Advertising and Marketing
non degree courses of study.
Appraisal Education:
Appraisal 101, Society of Real Estate Appraisers 1977
Appraisal 102, 103, 104 Prosource Education Seminars
Narrative Report Writing Seminar, University of
Minnesota Continuing Education Extension Course 1980
Business valuation Seminar, American Institute of Real
Estate Appraisers 1981
Federal Residential Appraisal Examination April 1991
Federal General Appraiser Examination February 1994
Investment and Financial Analysis August 1992
Hazardous Substances and Contamination Valuation July 1993
Small Income Producing Property Appraisals July 1993
Analysis of Residential Construction April 1994
Investment Property Appraisals April 1994
Experience:
Independent Fee Appraiser at Appraisal Associates,, a
Minnesota business providing nerrativs;-opinion tette= — i`
limited and summary appraisals oinco 1977 to clients in the
upper midwest. A partial list clients includes the cities of
Delano, Howard Lake, Annandale, Buffalo and Rockford.
Corporate clients in include: Equity Lending Inc
Honeywell Pillsbury 3M General Mills AT&T
Norwest Bank Chemical Mortgage Co. Appraisal Mgmt Co.
Prudential Relocation Management TCF Mortgage Corp
Certified Appraiser for Department of Housing and Urban
Development (FHA) for single family and 2-4 unit dwellings
Qualified as expert witness in Hennepin, Wright, Carver and
Washington County Courts for probate, condemnation and civil
cases.
•/• Sova e1C0LL[e1e-e1 MSAWHO • AaaMMaM-Moas of -Ci e9 -11 -SVM
Jeff O'Neill
Assistant Administrator & Community Development
City of Monticello
250 East Broadway
Monticello, MN 55362-9245
RE: Our Clients: Richard and Marian Carlson
Dear Mr. O'Neill:
1 have been retained by Richard and Marian Carlson regarding the sale of their property.
On behalf of Mr. and Mrs. Carlson, please be advised that the Carlsons' February 5. 1996.
response to your January 12. 1996, letter, is hereby withdrawn.
Mr. and Mrs. Carlson have decided to rebuild their home and will not be selling their
property to the City of Monticello.
Very sincerely your.
Bn ce L. Valen
Attomey at Law
blv/reb
cc: Richard and Marian Carlson
(Lk
UAW -FORD LEGAL SERVICES PLAN
Suite 235 Wright Building
2233 University Avenue
i Attorneys
St. Paul. Minnesota 65114
(812) 8414)847
Jessk S. Carlson
FAX: (612) 646-4181
Managing Attorney
Bruce L. Valen
Laura J. Zdychnec
Sharon L. Elmore
March 11, 19%
Jeff O'Neill
Assistant Administrator & Community Development
City of Monticello
250 East Broadway
Monticello, MN 55362-9245
RE: Our Clients: Richard and Marian Carlson
Dear Mr. O'Neill:
1 have been retained by Richard and Marian Carlson regarding the sale of their property.
On behalf of Mr. and Mrs. Carlson, please be advised that the Carlsons' February 5. 1996.
response to your January 12. 1996, letter, is hereby withdrawn.
Mr. and Mrs. Carlson have decided to rebuild their home and will not be selling their
property to the City of Monticello.
Very sincerely your.
Bn ce L. Valen
Attomey at Law
blv/reb
cc: Richard and Marian Carlson
(Lk
Commission has alone a great j n „
looking at Ileaibility. No everything hu
• p°' `ed roof and if it doesaY have o
p1h roof then it's some other gate-
ttteahtm Inas o nilehad element In u. Nte're
getting quality huitt inys, ones that will last
a long time: Gerhardt said.
"Using Eden Prairie a, an example.
you've got to have 65 percent of the build -
;ng having Io have brick nn it or sorne-
thing of that son. So you don't have to
worry about paint peeling, you don't have
to worry about the cinder block ever scal-
ing off. The city long-term, has had the
individual place a building thatyou won't
have to go in and redevelop for u long
period of time:' he said.
"It does provide a lower cost for some
stray from traditional rules unJ Prul de the
city with mire things. such a+ affordable
housing. that ros planner, want. a, 'I
as the I h, n r., li•,: I..r.a,, wI,. Airy
..You're pit., tiling mote 11".h,h,. u
the devchje to Jit ddlerent things than
what is traditional ur under the exlsung
zoning. You may fend some tit the rules
in trade-olfs o1 other things — you may
get more green area, you may provide
other uses not permitted In that area, you
may get higher quality' building materials.
you may get more landscaping, you may
get more uses the city would like,., sce—
low income housing as a pan of it."
Gerhardt +aid.
Thai's why residents hear of -concept
nna uunog 1—, .,..•,,,.,
will then give +gaff arm: direction — save
the trees. buffer yards "
C1n tin ryrw '..1 alr,ch.pmant. ,•
,. pan,culat time I——I——m,nl. ed. J.and
Kith the elected hod, of the em. the
Chanhassen City Council. as well as neigh.
h(w% and c'o% stall' have a say. have flex.
ibillm
"if you do a PUD. the city will get
something they've been lacking for, and
whateverthe ncighborht*xJ that abuts it is
holing fou." Gerhardt said.
"If you've gut a residential neighbor.
had over here and a townhouse develop•
ment dines in and they' want it, get move
density, we can put in that we want a 150•
have come in with Iota with back yarns
right nest to each other. and, as a city, there
w. old he nnthinrt we iv, - I, mist. rhea
— lhese me lhr rule. M•,1 D. ttKrC-+
mute negotiating power. re try'Ing to
find a win-win siluauon."
But in tradiliunal tuning, there would
be nu give and take and cin residents
could he hun. Even though traditional ton.
ing, city officials would say, is still ad-
equate, a PUD provides marc in the long
run.
"1 think today's sextet)' is hooking for
more flexibility out of everybody."
Gerhardt said. "I think a lot of people get
frustrated with the rules of the city."
TIF used to develop Chan's infrastructure
By Dean Trippler
You've maybe heard ahtwl this tax•
increment financing stuff, but what does
it all mean:'
In the de+'cloping area of Chanhassen.
tax-Incremero financing, ur TIF, has been
used heavily' to create the infrastructure
heeded to lure businesses to locule here
and enhance the tax hale.
'TIF Is a unil created ho assist cities to
creating economic desehopnent. enhanc.
ing a cltj''s tax base and coifloyment
base. • Cltanhusscn Assistant City Manager
Todd Gerhardt said. "Also• the biggest
asset til IN, ttwd is to help offset public
improvement costs."
For Chanhassen. that meant a "mar
sive" amount til' work and money spent tin
infmslruclurc within the downtown, infra•
structure that w':1+nortrumcnl a few years
ago.
"We had nn +mall ewer system. Ym
had Iltwding over by old St Huben'+. the
dry cleaner N,,old Ilond out every other
year." Gclhatdt said "You had Nalef
mains that mere tls'ci 10\'ears old. Where
il you cscn had., hoc a I'auls's or the Din.
net Thcaucs, you cnuldn'1 put IN, fife out
We Nuuld hove htxoked out truck up it,
that Naici line, and our truck Ntwld h.nc
collapsed than Nulcf main just K•cauw it
Nen sit old, and Ilial fere Nnuld h.nc had
to hunn hell ..til ,
The stiects wetc nt.ulelluae, glad
park I ng h a. u ere I hr m o m du t wgh� nn dor
l
_ ' • � � ,>� j,J. eta..
Thr Chanhassen Iluw 1 +Ito -ill us tax-Incriernem Onaneing to upgrade Iht• building',
fucadc and protide parking. In tum, the• tin will rsrntually gain non• in prop•
tiny tame..
were able to pro% tde Incentives for busi-
nesses
usynesses to locate there "
The city came In and put to new street+.
tee lighting• new water mains to accom.
modate new husincsscs.
"Now, you've gilt to figure our how
we're going h, pay for this:' Gerhardt said
11w city could have asscs+etd hack the costs
lit the benefiting husmcsscs. but the asws
menu would have been u, uunagctus, that
some businesses wouldn't be able it, pay
them.
'14, yew had to go ,n and physically.
demolish buildings and try Io find other
u+c+w pay mere taxes it, sum irl that m•
trasuucmre. and enhance the las and em-
pluvmenl hase." he smd.
For example. there used w be a halt
care facility where the medical arts budd-
ing new• stands. The halt care 1'acdoN pard
S20M1 u year In taxes, whereas the medi-
cal
edrcul an.+ building pays from SSO.MMIto
SN 1.(X X) a year
"Me cin Knight pti,pernes and Pre.
paled the %tics fur n•deveh,pmcnl N'oh•
out llic m:rmoc la do m.m, hustncsses
Mould haoc In go lhmugh lax Inticoute
Ixccauw thex couldn't Pay' the assessntrnls.
sit I dunk it`s a Nin -w in I,n a•% cit enc ..
•ur.lan,l obit. eta:; ,un,h•raun.no Luhf Nauung l.•h., ,,I, th.•n•- .. hank n�a"dy How• docs TIF work?
w'.tpml• n�,.uth, Ndl hn.m,e Ili.,.: Is pc. of nnle,n enlcm, list bomb s.ud that the lint slap I. w
t 1,,.., ml,asuu,nue 1'„u tumid ur' I,,ns IIIc oudnlg huJ,b
torgcl ilu•an•.,y„u Nam o�tr.lc, chq•
tnu ,e o,' , up '• lint: hu,oles e, mg.' A "..h.0 :, .•„d All "ll, III Na TIF to papa 30
1
l
_ ' • � � ,>� j,J. eta..
Thr Chanhassen Iluw 1 +Ito -ill us tax-Incriernem Onaneing to upgrade Iht• building',
fucadc and protide parking. In tum, the• tin will rsrntually gain non• in prop•
tiny tame..
were able to pro% tde Incentives for busi-
nesses
usynesses to locate there "
The city came In and put to new street+.
tee lighting• new water mains to accom.
modate new husincsscs.
"Now, you've gilt to figure our how
we're going h, pay for this:' Gerhardt said
11w city could have asscs+etd hack the costs
lit the benefiting husmcsscs. but the asws
menu would have been u, uunagctus, that
some businesses wouldn't be able it, pay
them.
'14, yew had to go ,n and physically.
demolish buildings and try Io find other
u+c+w pay mere taxes it, sum irl that m•
trasuucmre. and enhance the las and em-
pluvmenl hase." he smd.
For example. there used w be a halt
care facility where the medical arts budd-
ing new• stands. The halt care 1'acdoN pard
S20M1 u year In taxes, whereas the medi-
cal
edrcul an.+ building pays from SSO.MMIto
SN 1.(X X) a year
"Me cin Knight pti,pernes and Pre.
paled the %tics fur n•deveh,pmcnl N'oh•
out llic m:rmoc la do m.m, hustncsses
Mould haoc In go lhmugh lax Inticoute
Ixccauw thex couldn't Pay' the assessntrnls.
sit I dunk it`s a Nin -w in I,n a•% cit enc ..
•ur.lan,l obit. eta:; ,un,h•raun.no Luhf Nauung l.•h., ,,I, th.•n•- .. hank n�a"dy How• docs TIF work?
w'.tpml• n�,.uth, Ndl hn.m,e Ili.,.: Is pc. of nnle,n enlcm, list bomb s.ud that the lint slap I. w
t 1,,.., ml,asuu,nue 1'„u tumid ur' I,,ns IIIc oudnlg huJ,b
torgcl ilu•an•.,y„u Nam o�tr.lc, chq•
tnu ,e o,' , up '• lint: hu,oles e, mg.' A "..h.0 :, .•„d All "ll, III Na TIF to papa 30
officers plan to continue to serve their cus.
tomers' needs by offering the best quality
of food 1 the best service possible to
0—t. urea ruidem..
FA%WOr$ Bullders
predicts sftng 196
the home improvement trade, both ex-
terior and 'anterior, have kept Edgework
Builders, Inc, busy during the past year in
the Chanhassen area.
Edgework Builders, located at 9301
Audubon Road, has been in Chanhassen
for nine years. The IB employees, under
the leadership of David Stockdale, handle
exterior improvements, including high in-
tegrttion of landscaping and hardscaping.
docks, and porches; and interior improve.
ments including kitchens. baths, and room
additions. One of the company's special-
ties is the debignibunld process.
Last year. one of Edgework's contem-
porary remodeling projects, including o
TIFCORdwned 6om page I1
For example, the popoud entertain-
ment complex at the nCTta basun Bowl site
has seven parcels of land. The city has to
put together what will occur and how the
money will be used, in that cam to upgrade
the facade and provide parking.
"You go and take o look at the bowl-
ing alley or the old Insant Web. ant tar
one would say we shouldn't do that, but
some would say let the owner worry about
that," he said.
But the odds are, he said, that the im.
provements won't he done without city
help, because the businesses are making
just enough money to cash flow and have
no incentive to dress up the facades.
"The city has to provide some kind of
incentive to encourage them to redevelop
it to have an attractive building and bring
additional uses in that the community will
want to take pan in — a movie theater,
Dairy Queen, restaurant — those types of
uses." he said.
So, with the city stepping in, a tenant
WAII&MYCJ %;1433C.N
For the past five and a hWyews, Janet
Process *=ciae iasvoctar and 6w
ehiae o.mer. tar aRad flsar ela�as 1
Hers cornbieeexercRis�e with
dance -based choreography and popular
music. Each class is between 60 and 65
minutes in length and classes are offered
on an ongoing basis, to students can sten
at any time.
Last year. Process added a class at the
new Chanhassen Recreation Center. An-
other change was adding more weights for
toning within her classes. Throughout the
corning year, with the changes expected
at the Chanhassen Bowl. she will be look-
ing fora new space for her classes. If the
demand for classes increases, she may also
add classes in the morning.
Since beginning in September 1990.
Process has rren more than ISO jansrcise
audents, learned more than 500 new songs
and held more than 900 classes in
Chanhasun.
that provides 66,0000 year in tuts could
he upgraded to something that would pro-
vide 1150,000 a year in taxes.
"'Rte city would see a return after
awhile in their investment in the additional
taxes mode off that," Gerhardt said.
In this cam, the bowling center and sia
other parcels bring in an estimated
1150,000 a year in taxes now, money that
is going so pity oRde impmm
vemes made
in the downtown. But now the f+uik'inps
in question need help, which meant the
city has to "decertify ' the area, place the
parcels hack on the ax roles nut of the old
TTF district and split up the axes gener-
wed among the various taxing entities —
the school district, city. county and spe-
cial axing units like watersheds and the
Mt,pyuiw Control District.
I fIC Incentive given to upgrade the
howling center and other buikfmgs is to
give hack 10.1 S years of the new axes
generated from the new uses. The devel-
open of the new entertainment complex,
is by StevenY-pledt, pt �
son awry .
and
,ddcw.
tats�ete
r
ter with A E.Wdnea
modem ak"Im
amu r -the -an. tuft -service acct.
i
-
ity for foreign and domestic automobilesan
a
and light and medium weight trucks.
In 1996,
L'
1001S to i11t1lre
the local Goodyear will par-
�n i
'
ticipate in Youngstedt's celebration of 25
The Chanhassen Vision Clinic a C-5-6, f
years in business. Goodyear staff foresee
future as holding great opportunities for
a bright future in their industry and their
independent optometrists to provide ea- i
service to Chanhassen customers.
ceptwnml eye health care and the hen pos-
sible products available.
BOn1eWArd BOund
Located at 7972 Market Boulevard,
Chanhassen Vision Clinic has been in busi.
L
tOV� with Shaw
ness for three years and employs five
people. The clinic offers full-service op.
In the past year. Homeward Bound
m
toetrist and optical services, visual and
TheaueCompany has toured aproduction
eye health examinations, medical eye care
statewide with high school teenagers that
and refractive surgery consulut funs as well
addresses the issue of abstinence as the
as designer eyewear.
"right choice" for young people.
The production, "All Dressed Up—No
Place To Go" was also performed at the
Gerhardt said, feel they will generate
6300.000 in taxes an that site. Half of the
Emu as an incentive for the developers to
front the can of the facade std parking
improvertteats. The other 1150.000 is split
by the countyy, school district, city, and
other taxing diaaicts.
"So would this ever happen without
city assistance? My guess is probably not,"
Gerhardt said. But the hope is that. throe
city participation, a better project will
the result.
"It's pay-as-you-go;' he said. "We
don't give the money up from. It's only if
they create 1300.000 do they get the
s I Soma If they don't, they don't get it.
They have to go to the hank, and get the
financing for the 11.5 million for the fa-
cade. They have to convince the hank aha
this is gang to cash now. and they take
our agreements and show them that they
are QQoing to get this money hack."
Ia M. the city gets a uniform parking
lot. appropriate uses for the land and what
the community wants, as well as adressed
up building.
After 10 or 15 years, the City Council
can deckle what it wants to do as far as
putting the facility full bore back an the
tax rules or leaving it u it is. In that time,
perhaps the Chanhassen Dinner Theatres.
also within the district. may nal assis-
tance with similar improvement, which
stats the process all over again.
"Bringing in a movie theater into
downtown Chanhassen will benefit
Wendy s, it will benefit all the restaurants,
it will benefit all the services in the evening
time," Gerhardt said. "Right taw, with the
exception of the dinner theater, we don't
have a lot of evening activities to draw
people to downtown Chanhassen. The
movie theater provides that opportunity.
You don't have to drive to Excelsior or
Filen Prairie to see a movie, you can ger to
your own community."