74-03 - Lyman Lumber SPR pt 2CITY -OF
�, - d. .t, i �i ;j
q - N
7610 LAREDO DRIVE • P.O. BOX 147 S CHANHASSEN, MINNESOTA 55317
(612) 937-1900
November 17, 1980
Mr. Peter Throhdahl
Lyman Lumber Company
3rd Street
Excelsior, Minnesota 55331
Dear Peter:
Attached please find a copy of the Chanhassen Lyman Lumber
Development Contract First Amendment and staff correspond-
ence relating to the performan e bond requirements of said
contract. As mentioned in the,attached correspondence, a
lighting plan is yet to be submfe_tted; however, at this time,
for performance bond requirement's, the City Engineer has
roughly estimated the cost of lighting improvements to be
$5,000, bringing the total,improvement estimate to $80,476.
I believe that the remainder of th°e amendment is quite straight
forward and accurately reflects the. actions of the City Council.
If you have any questions or comments, please feel free to
contact me.
Sincerely,
Bob Waibel,
Land Use,�zC'oardi'nd�tor y`
BW:nr
Enclosure
cc: File P-059
21
11�
FIRST AMENDMENT TO
DEVELOPMENT CONTRACT
LYMAN LUMBER COMPANY
WHEREAS, the parties hereto have made and entered into
a development contract dated July 16, 1979, and entitled "Lyman
Lumber Company Development Contract" (The Development Contract) ; and
WHEREAS, said Development Contract provides for four phases
of construction, and
WHEREAS, at the time of execution of said Development
Contract, final plans and specifications were not available for
Phases II, III and IV; and
WHEREAS, Developer is not requesting approval of plans
and specifications to proceed with Phase II (Millwork Building); and
WHEREAS, the Planning Commission has reviewed Developer's
proposal for Phase II and issued its Planning Report dated May 12,
1980 and approved said Phase II subject to certain conditions on
May 15, 1980; and
WHEREAS, the City Council approved said Phase II subject
to certain conditions by resolution dated June 2, 1980;
NOW, THEREFORE, said Development Contract is amended as
follows:
1. Scope of Development Governed by Exhibits. Paragraph 2
of the Development Contract is amended to add the following sentence:
The exterior dimensions, grading plan and placement
of structures of the'bffice/millwork buildinq'in
Phase II shall be substantially in conformance with
plans entitled "Automated Building Components" dated
January 24, 1980 by Volp Construction Co. and
landscape and grading plan dated April 7, 1980 by
Emilio L. Viramontes & Volp Construction Co., copies
of which are on file in the office of the City Zoning
Administrator, subject to the changes and conditions
hereinafter set forth.
2. The last sentence of Paragraph 3 is amended to read as
follows:
The architectural design and decorating scheme of the
proposed'bffice/millwork building" shall be in sub-
stantial.conformance with the plans dated January 24, 1980
and April 7, 1980 by Volp Construction Co., copies of
which are on file with the City Zoning Administrator.
The architectural design and decorating scheme of the
proposed Component Plant and Office Building shall be
submitted to the Planning Commission for review and to
the Chanhassen City Council for approval prior to the
Developer's application for any building permits therefor.
3. The Plans dated January 24, 1980 and April 7, 1980 by
Volp Construction Co —are approved subject to the following
conditions:
a) The three parking stalls shown on the Plans in the
southwesterly curb cut shall be relocated north of
the proposed building;
b) Four additional parking stalls shall be added, the
location of which shall be subject to approval of the
City Planner;
c) The Developer shall submit a lighting plan by
, 19 , which plan shall be subject
to the approval of the City Engineers;
d) Developer shall maintain screening of the site east
of the proposed building with the terms as previously
approved by the City Council.
4. Paragraph 10 of the Development Contract is amended to
insert the dollar amount of the performance bond required for
Phase II as follows:
Phase II $ 80,476.00
Except as specifically provided herein, all other terms, conditions
and provisions. contained in the above -described Development Contract
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused these
presents to be executed on this day of , 1980.
LYMAN LUMBER COMPANY
By
its
And
its
CITY OF CHANHASSEN
By
Mayor
Attest:
City Clerk Manager
-2-
STATE OF MINNESOTA)
) ss.
COUNTY OF CARVER ) E
On this day of , 1980, before me,
a notary public within and for said County, personally appeared.
Walter B. Hobbs and Don Ashworth, to me personally known, who,
being each by me duly sworn, did say that they are respectively
the Mayor and City Manager of the municipal corporation named in
the foregoing instrument, and that said instrument was signed in
behalf of said corporation by authority of its City Council, and
said Walter Hobbs and Don Ashworth acknowledged said instrument to
be the free act and deed of said corporation.
Notary Public
My commission expires:
STATE OF MINNESOTA.)
) ss.
COUNTY OF CARVER )
On this day of 1980, before me,
a notary .public within and -for--said--County, - .personally--appeared-
and - ,
to me known to be -the and
.. of the corporation named in :the
foregoing instrument, and that said instrument was -signed in
behalf of said corporation by.. and
...............
and acknowledged said instrument to
be the free act and deed of said corporation.
Notary Public
My commission expi.res:-
-3-
A . .
WILLIAM D. SCHOELL
CARLISLE MADSON
JACK T. VOSLER
JAMES R. ORR
HAROLD E. DAHLIN
LARRY L. HANSON
JACK E. GILL
THEODORE D. KEMNA
JOHN W. EMONO
KENNETH E. ADOLF
WILLIAM R. ENGELHARDT
R. SCOTT HARRI
GERALD L. BACKMAN
SCHOELL & MAOSON, INC..
ter. -
ENGINEERS AND SURVEYORS
(612) 93B-7601 • 50 NINTH AVENUE SOUTH • HOPKINS. K41NNESOTA 55343
City of Chanhassen
c/o Mr. Bob Waibel, L.U.C.
P. O. Box 147
Chanhassen, Minnesota 55317
Subject:
Gentlemen:
October 30, 1980
Lyman Lumber Development
Contract Amendment
Pursuant to your request of October 14, 1980, we have
assembled information on the estimated cost of the off -structure
improvements for the Lyman Lumber facility, second phase. I
have not received a lighting plan for review to date.
The estimated cost data was furnished by Mr. Heyerdahl of
Volp Construction Company, the general contractor.. Total cost
is $75,476.00.
Very truly yours,
SCHOELL & MA1?5ON, INC.
JROrr:mkr -- -L^
enclosure
I
volp construction co.
2125 CHESHIRE LANE NORTH • MINNEAPOLIS, MINNESOTA 55441
612-559-9600
October 27, 1980
Schoell & Madson Inc.
50 Ninth Avenue South
Hopkins, MN. 55343
ATTN: Jim Orr
RE: Automated Building Components
18800 West 78th Street
Chanhassen, MN.
Dear Sir:
The following is a list of exterior work
for the project.- Also,
the cost of each item and the percentage
of completion to date.
Item Cost
% Complete
I: Paving $ 30,195.00
-0-
2. landscaping $ 14,120.00
-0-
3. Retaining Walls $ 12,325.00
85%
4. Concrete Curb & Gutter $ 2,500-.00
-O-
5. Outside Utilities $ 6,740.00
100%
6. Electrical $ 9,596.00
10%
If you have any further information, feel
free to contact me at
this office.
Very truly yours,'
VOLP CONSTRUCTION CO.- '
f �Ze
0J
-Stephen K. Heyerdaht
cc: Bi11 Ziemer
a
WILLIAM D. SCHOELL
CARLISLE MADSON
JACK T. VOSLER
JAMES R. ORR
HAROLD E. DAHLIN
LARRY L. HANSON
JACK E. GILL
THEDDORE D. KEMNA
JOHN W. EMOND
KENNETH E. ADOLF
WILLIAM R. ENGELHARDT
R. SCOTT HARRI
GERALD L. BACKMAN
SCHOELL & MAOSON. INC.
ENGINEERS AND SURVEYORS
(6121 938-7601 • 50 NINTH AVENUE SOUTH • HOPKINS, MINNESOTA 55343
City of Chanhassen
c/o Mr. Bob Waibel, L.U.C.
P. 0. Box 147
Chanhassen, Minnesota 55317
Subj ect:
Gentlemen:
October 30, 1980
Lyman Lumber Development
Contract Amendment
Pursuant to your request of October 14, 1980, we have
assembled information on the estimated cost of the off -structure
improvements for the Lyman Lumber facility, second phase. I
have not received a lighting plan for review to date.
The estimated cost data was furnished by Mr. Heyerdahl of
Volp Construction Company, the general contractor. Total cost
is $75,476.00.
Very truly yours,
SCHOELL & N� INC.
JROrr : mkr
enclosure
0
" volp construction co.
2125 CHESHIRE LANE NORTH • MINNEAPOLIS, MINNESOTA 55441
612-559-9600
October 27, 1980
Schoell & Madson Inc.
50 Ninth Avenue South
Hopkins, MN. 55343
ATTN: Jim Orr
RE: Automated Building Components
18800 West 78th Street
Chanhassen, MN.
Dear S i r:
The following is a list of exterior work for the project. Also,
the cost of each item and the percentage of completion to date.
Item
Cost
% Complete
1.
Paving
$
30,195.00
-0-
2.
landscaping
$
14,120.00
-0-
3.
Retaining Walls
$
12,325.00
85%
4.
Concrete Curb & Gutter
$
2,500.00
-0-
5.
Outside Utilities
$
6,740.00
100%
6.
Electrical
$
9,596.00
10%
If
you have any further
information, feet
free to contact me at
this office.
Very truly yours,
VOLP CONSTRUCTION CO.
IT
Stephen K. Heyerdahl
to
cc: Bill Ziemr
CITY OF
CHARk"i "ISSEN
7610 LAREDO DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
November 21, 1980
Mr. Peter Throhdahl
Lyman Lumber
3rd Street
Excelsior, Minnesota 55331
Dear Peter:
In response to our phone conversation of this morning, I
have reviewed the mill work p;r,oject with Lynn Patten of
Schoell and Madson. We are b6"th in concurrence with your
estimates of work already completed. Accordingly, the
letter of credit for this project may be submitted in
the amount of $42,873.
Sincerely,
Bob Waibel
Land .Use Coordinator
BW:nr
Minutes of the 12-17-80 Planning Can -mission Meeting
Page 5
(5) LakeSusan>South: Mr. Waibel described the Lake Susan South
Development plan and noted it had received preliminary develoFatent plan
approval by both the Planning Camnission and City Council. He reccmrrended
it be maintained oa the annual review list for a 1981 review. Chaff nTan_
Horn felt the status of the alignment of Highway 101 should be noted
as it related to the development. The.Carrrrission generally agreed with
staffs reccnsnendatim and that Highway 101 should be maintained as
a "watch" item.
(6) Lake-Susan.West: Mr. Waibel described the development
and said it had received final development approval for the first phase
by the Planning Ca nnission. The City Council had not yet given their
approval because there was a discrepancy as -to what plans should be
reviewed in lieu of the Planning Ccamission's reservations on that multiple
phase area and because there were so many conditions set on approval
of the plan. He reccrmended the district be maintained on the annual
review list at this time. The Can ission generally agreed with staff s
recommendation..
(7) Lotus -.Lake. Estates.. lst,- 2nd,..and. 3rd, Additions: Ur. Waibel
explained the development and its status and reccamanended removal of
the 1st Addition frcan the annual review list, because public improvements
on the addition were completed with 70 percent of the home construction
canplete. The 2nd and 3rd Additions should be maintained under active
review status.
The Cannissin felt the entire development should be. retained
under annual review until the public improvements had all been completed.
Chairman Horn said he felt this should be done for every development..
(8) Lyman Lumber--Park-•r-: Mr. Waibel described the development,
noted the status and reccaYmended that both be maintained on the annual
review list. Discussion occurred on the financial involvements of Park
1. The Camnission generally agreed with staff's reccmmendation.
(9) Minnewashta Creek--2nd Additionsn Mr. Waibel explained the
development and its status notiriq it included an outlot with a conditional
use permit. He said the public improvements had been copleted and
approximately 15 percent of the homes were complete. Mr. Waibel reccmpanded
the district be removed fran,ithe annual review list. The Commission
generally agreed with staff's recndation.
(10) M.T.S. M Waibel described the development and said
any construction start was indeterminable at that time. He reccxaunended
thatany.facilities construction proposals be forFrarded to the Planning
Commission for full site plan review and that the district be maintained
on theannual review list. Mr. Hamilton moved the Cammissa_on ask the
City Council to direct them to hold a public hearing to initiate a down --
zoning of the subject property due to the lack of action on the site
by the developer. Mr. Partridge seconded. All voted aye. Motion. carried.
CITY OF
CHANHASSEN
7610 LAREDO DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
MEMORANDUM
DATE: November 6, 1980
TO: City Engineer, Jim Orr
FROM: Land Use Coordinator, Bob Waibel
SUBJ: Lyman Lumber Development Contract, Phase II
PLANNING CASE: P-059
With reference to our discussion on the subject
item, I will be adding $5,0000u"Pto your estimate of October
30, 1980, for estimated 1ighfin=4,costs. I have also con-
tacted Mr. Heyerdahl of Vol,v=Con:s-truction Company and he
has indicated that he will.,be sehding a copy of the
lighting plan to you shortly.
.q
BW:nr
y
a
CITY OF
-�
MaN
xr
7610 LAREDO DRIVE P.O. BOX 147 s CHANHASSENj MINNESOTA 55317
(612) 937-1900
MEMORANDUM
TO: City Manager, Don Ashworth
City Attorney, Russ Larson
City Engineer, Jim Orr
City Treasurer, Kay Klingelhutz
FROM: Land Use Coordinator, Bob Waibel
DATE: October 29, 1980
SUBJ: Status of Escrow Accounts No. 929, No. 92.7, Nit. 960,
and No. 920.
The following are my comments on the subject accounts:
1. Account No. 929 - Fair Acres Addition.- Robert
Mork: I have been informed that Mr. Mork has
dropped his request and has sold the property to
Mr. Ken Durr; I recommend remitting the balance
and closing the account.
2. Account No. 927 - Lyman Lumber Phase II: I pre
.some that this phase is completed for staff
work with the exception of the engineering review
as outlined in the attached October 14, 1980,
memorandum. If there are any other considerations,.
please note such on the attached escrow estimate
;sheet and return-. Applicant will then be notified
of, the defi c-i t .and estimate .of work remaining.
3. Account No. 960 - Sunrise Beach: Please --fill out
the attached escrow estimate sheet carrying the case
through final plat and inspection of installation
of improvements. Upon receipt of such, the applicant
will be notified of pending deficits and estimated
staff costs throug'h._.project completion.
4. Account No. 920 - Instant Webb Replat: Need estimates
as per the attached escrow estimate sheet. The
applicant will be notified as -in two and three of
the above.
BW: nr f
CITYOF_
MIN
RON
7610 LAREDO DRIVE9P.O. BOX 147 *CHANHASSEN, MINNESOTA 55817
(612) 474-8885
#927 LYMAN LUMBER
LARSON & MERTZ June 1980 Review of file on 6-20 in preparation for drafting First -Amend-
ment to development contract; draft of First Amendment -to contract
on 6-23 to cover Prase II construction. and forwards same to Plan-
ning Department and Lyman Lumber:
"LARSON & MERTZ August 1980 Review file to determine correctness of development contract
amendment: a 66,Ci0
BALANCE DUE 9-23-80 .147.00
* wm�
:# t
.. {1
ESCROW ES=4ATE FOR APP=T=ICN OR PLANNMG REu-`..fE'ST
Case Title: M MOM
Planning Case:
Land Use Coordinator Is Cam-ents :
c) Engineering
d)
initial Other InitiaL
Legal:
E�gir�rirx�:-
Y
The above are estimates as dete=dnea by the offices indicated_ I -,ark pe, rforr.sed is
-tabulated and is avc-ulable at the city Treasurer I s office_ Any balances rema-ining after
ecupletim of the process, wit-h the excegtion of the standard fee, -%9±11 be remit -tea.
Charges exceeaixig the ac= t balance will. be billed directly ect y to the applicanh-
PT,.DTZ\TD,'Z AUHMSTPATI N FEE SC`9EM7E:
a) Rezonimg-- $100 e) Planned Develorxr.._nts= $150 plus $5 for
b) Site Plan Review- $75 first 10 units - $1.50 for each
c) CondI ional Use Permit: $100 additional unit_ Cn, ndmisliva and
d) Si bdivisi.on: $10 per acre plus $5 per anartr�ents collectible at site pl,
lot - $100 ninimam review_
f) Vacation of Streets: $100
er) Ua-riane-p Rx 76---,F-_ S50
CITY OF
CHANiff, nISSEN
7610 LAREDO DRIVE*P.O BOX 147*CHANHASSEN, MINNESOTA,95317
(612) 474-8885
MEMORANDUM
DATE: October 14, 1980.
TO: City Engineer, Jim Orr.
FROM: Land Use Coordinator, Bob Waibel.
SUBJ: Lyman Lumber Company Development Contract Amendment.
PLANNING CASE: P-059
=:v k
As can be seen in the attached, we need information from your
office regarding the estimated cost of the off -structure
Improvements for the Lyman Lumber facility, second phase, and
also whether or not you have received a lighting plan for
review. Call if you need any further information on the
matter.
BW:nr
FIRST AMENDMENT TO
DEVELOPMENT CONTRACT
LYMAN LUMBER COMPANY
WHEREAS, the parties hereto have made and entered into
a development contract dated July 16, 1979, and entitled "Lyman
Lumber Company Development Contract" (The Development Contract); and
WHEREAS, said Development Contract provides for four phases
of construction, and
WHEREAS, at the time of execution of said Development
Contract, final plans and specifications were not available for
Phases II, III and IV; and
WHEREAS, Developer is not requesting approval of plans
and specifications to proceed with Phase II (Millwork Building); and
WHEREAS, the Planning Commission has reviewed Developer's
proposal for Phase II and issued its Planning Report dated May 12,
1980 and approved said Phase II subject to certain conditions on
May 15, 1980; and
WHEREAS, the City Council approved said Phase II subject
to certain conditions by resolution dated June 2, 1980;
NOW, THEREFORE, said Development Contract is amended as
follows:
1. Scope of Development Governed by Exhibits. Paragraph 2
of the Development Contract is amended to add the following sentence:
The exterior dimensions, grading plan and placement
of structures of the'bffice/millwork buildinT in
Phase II shall be substantially in conformance with
plans entitled "Automated Building Components" dated
January 24, 1980 by Volp Construction Co. and
landscape and grading plan dated April 7, 1980 by
Emilio L. Viramontes & Volp Construction Co., copies
of which are on file in the office of the City Zoning
Administrator, subject to the changes and conditions
hereinafter set forth.
2. The last sentence of Paragraph 3 is amended to read as
follows:
The architectural design and decorating scheme of the
proposed'bffice/millwork building" shall be in sub-
stantial conformance with the plans dated January 24, 1980
and April 7, 1980 by Volp Construction Co., copies of
which are on file with the City Zoning Administrator.
The architectural design and decorating scheme of the
proposed Component Plant and Office Building shall be
submitted to the Planning Commission for review and to
the Chanhassen City Council for approval prior to the
Developer's application for any building permits therefor.
3. The Plans dated January 24, 1980 and April 7, 1980 by
Volp Construction Co. are approved subject to the following
conditions:
a) The three parking stalls shown on the Plans in the
southwesterly curb cut shall be relocated north of
the proposed building;
b) Four additional parking stalls shall be added, the
location of which shall be subject to approval of the
City Planner;
c) The Developer shall submit a lighting plan by
, 19 , which plan shall be subject
to the approval of the City Engineers;
d) Developer shall maintain screening of the site east
of the proposed building with the terms as previously
approved by the City Council.
4. Paragraph 10 of the Development Contract is amended to
insert the dollar amount of the performance bond required for
Phase II as follows:
Phase II $
Except as specifically provided herein, all other terms, conditions
and provisions contained in the above -described Development Contract
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused these
presents to be executed on this day of , 1980.
LYMAN LUMBER COMPANY
wo
is
And
its
CI
M
Attest:
City Clerk,Manager
-2-
STATE OF MINNESOTA)
) ss.
COUNTY OF CARVER )
On this day of , 1980, before me,
a notary public within and for said County, personally appeared
Walter B. Hobbs and Don Ashworth, to me personally known, who,
being each by me duly sworn, did say that they are respectively
the Mayor and City Manager of the municipal corporation named in
the foregoing instrument, and that said instrument was signed in
behalf of said corporation by authority of its City Council, and
said Walter Hobbs and Don Ashworth acknowledged said instrument to
be the free act and deed of said corporation.
Notary Public
My commission expires:
STATE OF MINNESOTA)
) ss.
COUNTY OF CARVER )
On this day of , 1980, before me,
a notary public within and for said County,personally appeared
and
to me known to be the and — -- --
o the corporation named in the
foregoing instrument, and that said instrument was signed in
behalf of said corporation by and
_ and acknowledged said instrument to
be the free act and deed of said corporation.
Notary Public
My commission expires:
=Z
LARSON & MERTZ
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA 55402 TELEPHONE
CRAIG M. MERTZ
612 335-9565
June 26, 1980
OF COUNSEL
HARVEY E. SKAAR
MARK C. McCULLOUGH
Bob Waibel
Land Use Coordinator
City of Chanhassen
Box 147
Chanhassen MN 55317
Re: Lyman Lumber Company
Development Contract
First Amendment
Dear Bob:
Attached is our draft of the First Amendment to the Lyman Lumber
Company Development Contract dated July 16, 1979, covering
recent Council action relative to Phase II of this development
project.
Please review this amendment to ensure that it conforms to the
City intentions with regard to the project and if you find that it
does, please arrange to have it executed by officials of Lyman
Lumber Company and the City, furnishing this office with a copy
of the executed document.
RHL:ner
Enc
cc: Donald W. Ashworth
Peter Throdahl,
Lyman Lumber Co.
Very truly yours,
RUSSELL H. LARSON `-
Chanhassen City Attorney
I9804
.: RECEIVED .7
z1-
,
v
y
.N
Lyman Lumber Company
the professional builder's
supply center
300 MORSE AVENUE • MAILING ADDRESS: P. O. BOX 40 • EXCELSIOR, MINNESOTA 55331 • TELEPHONE 612-474-5991
THOMAS P. LOWE
President
June 24, 1980
Bob Waibel
City of Chanhassen
7610 Laredo Drive
P.O. Box 147
Chanhassen, MN 55317
Re: Letter of Credit, Lyman Chanhassen Project
Dear Bob:
R. L. DePAUW
Vice President
I am writing in response to your letter of May 23, 1980. In that, you dis-
cussed the possible need to renew our letter of credit for our Chanhassen
project, phase I. I also spoke to you about the letter last Friday.
This letter is our request not to renew the subject letter of credit. We
are substantially complete on the items you listed as needing to be com-
pleted. Of major importance is the bituminous surfacing which was finished
two weeks ago. As to any further lighting of the distribution yard, none
is planned beyond what has already been accomplished. The final two items,
sodding and seeding, and landscaping are in the process of being done. I
expect that they will be done by July 18, the letter of credit date.
It is with this in mind that we are requesting not to renew the letter of
credit. If I do not hear further from you, therefore, I do not plan to
renew the letter. If you have any further question, please give me a call.
Yours very truly,
LYMA L BER COMPANY
g
Peter J. Th ahl
Vice President
PJT/co
ry --- �-
� c
JUN1980
REC;FJRfMVdixon or
CHANHASg04
I:. MINK ,.�f
CITY JF ---
7610 LAREDO DRIVEOP.O. BOX 1479CHANHASSEN, MINNESOTA 55317
(612) 474-8885
May 23, 1980
Mr. Peter Throdahl
Lyman Lumber Co.
300 Morse Avenue
Excelsior, Mn. 55331
Dear Peter:
As you know, the City of Chanhassen does have in its files, a letter
of credit in the amount of $23,000.1rom Lyman Lumber as surety that
the improvements for Phase I of'the';Lyman Lumber complex are completed.
As you also probably know,.this letter of credit is set to expire on
July 18, 1980. In reviewing the project, it is apparent that sub- `
stantial work has been finished, however it appears that we will need
to have this letter of credit renewed. In reviewing the site, the
following improvements are yet to be completed:
1. Bituminous surfacing of driving areas in distribution yard
2. Boulevard sodding and seeding
3. Lighting on the eastern portion of the distribution yard
4. Landscaping
For administrative purposes, we would expect the new bond to be
delivered to the city offices by July 1, 1980. Should. substantial
progress be made on the items yet to be completed, please notify me
and arrangements can possibly be made for a readjustment in the letter
of credit amount.
If you have any questions or comments, please do not hesitate to
contact me.
Sincerely,
Bob Waibel
Land Use Coordinator
BW:nw
cc: City Manager, Don Ashworth
CITY -OF
CHANHASSEN
7610 LAREDO DRIVEOP.O. BOX 147*CHANHASSEN, MINNESOTA. 55317
(612) 474-8885
PLANNING REPORT
TO: Planning Commission and Staff
FROM: Land Use Coordinator, Bob Waibel
DATE: May 12, 1980
SUBJ: Automated Building Components, Site Plan Review
APPLICANT: Lyman Lumber
PLANNING CASE: P-059
Pai- it - inn
The applicant is proposing to construct an approximate 72,62 0 square
foot office/millwork production/warehouse facility as the second Strut
phase of the Lyman Lumber Distribution Center at 18900 West 7 St--"
to wit a plan review is to be carried out by the Planning Cc) s Sion
and City Council.
Backaround
1. Community Location: As shown on general construction sl-Ie o f 1'
the subject property is located approximately 1200 feet east the
intersection of Dakota Ave and the North Highway 5 frontage z-o act orl
the north side of Highway 5. 14
2. Existing Zoning: The subject property is presently zone a
planned industrial district.
3. Existing Utilities: The subject property is presently ava i lab 1
to municipal water and sanitary sewer.
Comments
The applicant had received development plan approval from tlz � City
Council and a subsequent plan amendment approximately one year�umla i
which had proposed that the second phase of the overall Lyma ri
complex would consist of a millwork building and all of the- approval .
approvals were contingent upon detailed site plan review ancl-
In the most recent plan amendment, the sketch of the
as proposed, indicated an initial 80,000 square foot
with a potential 20,000 square foot area added in the
millwo3-31- plat
structiLx:: e On
futures -
Planning Report -2- May 12, 1980
proposals such as this, such changes can be expected and this office
finds that the changes in this case are of no detriment to the overall
plan.
In reviewing the site plan, I find that ordinance 47 has essentially
two parking standards which could be applied on the subject proposal
with one standard requiring 80 spaces for parking and another requiring
65 spaces for parking. The difference lies in that ordinance 47
has two different criterias for office parking which are one space
for every 300 square feet and one space for every 200 square feet of
gross floor area in the C-1 office district, and I-1 industrial district
respectively. Since the applicant has indicated that initially only
13 office employees would be located in the facility and since one
space for every 300 square feet is a fairly uniform criteria for
office parking, I find that the only alterations to the parking plan
proposed should be the addition of four parking spaces to a total
of 65 should be arranged and also that the three stalls in the southwesterly
curb cut of the proposed development be relocated somewhere north of
the proposed building.
In reviewing the plans, one will notice that there is a variable setback
line from east to west paralleling the frontage road. Albeit that this
is of no consequence to the functionality of the overall plan, it would
be beneficial for the applicant to explain said variation.
During the reviews of the Lyman Lumber complex, there was concern
expressed by this office that extensive design consideration be taken
to provide for screening of the distribution yard located to the north
of the subject building. The present proposal appears to intensify
this effort in that the ground floor elevation of the proposed building
is approximately 8 feet higher.than previosly proposed placing the
building screening height at approximatley 966 feet above sea level.
Should overall site plan approval be given on the subject proposal,
it should be understood that the screening plan for the area east of
the proposed building will still be maintained as previously approved.
Recommendation
I recommend that the Planning Commission recommend the. City- Council
to approve the site plan of Lyman Lumber with: the...fol1owi'n,q conditions o
1). That the applicant relocate the three stalls mentioned in
the above comments section and add four more parking stalls
to the overall scheme to total a number of 65.
2). That the applicant receive lighting plan approval by the
City Engineer.
3). That the applicant maintain
the proposed building with
by the City Council.
/V1
screening of the site east of
the berms as previously approved
•'
0 4
BUILDING COMPONENTS, W.
MILLWORK DIVISION
April 21, 1980
City of Chanhassen
Planning Commission
Attn: Mr. Bob Waible
Automated Building Components is a Millwork Company dealing in finished
assembled windows, door packs and trim for houses and commercial con-
struction.
We have assembly machines, electric drills, air guns, etc. At the present
time we are operating with three large millwork trucks and have four
pickups being used by millwork employees for service and delivery.
Horst Dannenfelser
Shop Foreman
HD/11
8000 WALLACE ROAD • EDEN PRAIRIE, MINNIESOTA 55343 • TEL. 612-944-3080
volp construction co.
' !"� 2125 CHESHIRE LANE NORTH • MINNEAPOLIS, MINNESOTA 55441
612-559-9600
March_ 19,: 1980
City of Chanhassen
7610 Laredo Drive
Chanhassen, MN. 55:317
ATTN : Mr. Bob Wa i-b I e
RE: Lyman Lumber Distribution Center
Phase Two - Automated Building Components
Dear S i r:
The following information, as you requested, is in regards to
the number of employees occupying the A.B.C. M1:11work Building
and the business. hours.
Warehouse Employees
25
Office Employees 1113
TOTAL 38
Hours; 7:30 A.M. to 4:00 P.M.
Cno night shifts)
Hopefully, this information w:1:11 enable the planning commission
to determine.the parking requirements.
Thank y.ou.
Very truly yours,
VO LP CONSTRUCT CON CO.
Stephen K. Heyerd.ahl
to
RUSSELL H. LARSON
CRAIG M. MERTZ
OF COUNSEL
HARVEY E.SKAAR
MARK C. MCCULLOUGH
Chanhassen
c/o Donald
Chanhassen
Box 147
Chanhassen,
Dear Don,
LARSON & r'SERTZ
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
MINNEAPOLIS, MINNESOTA 55402
City Council
W. Ashworth
City Manager
MN 55317
November 8, 1979
N04'1979-
RECEIVES 72
c; VILLAGE of
CHANHASSEN,
MINN.
Re: Lyman Lumber Co.
Industrial Revenue Bond Issue
TELEPHONE
(612) 33S-9565
You have furnished me with the certificate, dated November 2, 1979,
executed by Peter Throdhal on behalf of Lyman Lumber Co. addressed
to Northwestern National Bank in Minneapolis to secure reimbursement
by Lyman of funds expended by it as a part of the company's develop-
ment undertaking. The reimbursement to Lyman comes from bond funds
held by Northwestern Bank as Trustee.
As you know, the.certificates are much like a pay request submitted
periodically by -contractors through our engineers for payment of
work on public projects. In your note to me you asked whether the
attached certificates are a file item or should we be listing amounts
due to the City, if such exists.
Under attached Section 3.04 of the Loan Agreement between the City
and :.,yman, the City is entitled to be reimbursed from the construc-
tion fund either by Lyman or directly from the Northwestern Bank as
Trustee for expenses incurred by the City relating to the cost of
the project. A copy of the Cost of the Project definition as found
in the Loan Agreement is attached hereto and you will note that
under Sect -on "I" all legal, abstracting financial and accounting
fees and expenses, underwriters fees or commissions, printing and
engraving costs and other expenses incurred in connection with the
authorization, sale and issuance of the series 1979 bonds, and the
preparation of the agreement, the indenture, the mortgage and all
other documents related to -the financing of the project are costs
properly allocable to the Cost of the Project. Under Section "K"
of the definition, all advances, payments and expenditures made or
to be made by the municipality, the Trustee and any other person
with respect to any of the foregoing expenses included, are also
costs allocable to the Cost of the Project.
Don Ashworth. -2- 11-8-79
Accordingly, I am of the opinion that the City should periodically
bill Lyman Lumber Co. for the City costs and request that the City
be reimbursed directly by Lyman or paid by the Trustee.from the
funds in the Trustee's possession. Kay informs me that at present
$333.14 is due from Lyman on this undertaking.
I further suggest that the City maintain a file on the attached
certificates, retaining the original and furnishing this office
with a copy thereof.
y y urs,
�ON
Chanhassen City Attorney
RHL:ner
Att
cc: Kay Klingelhutz
AYA/9P., Znql� ficp�7w�pT-
is required by the Indenture to deposit/the.same as
therein provided. e`
Section 3.03 Plans and Specifications. The
Company may make`'k,any changes in of modifications of the
Plans and Specifications and may/make any deletions from
or substitutions or additions /to the Project, without the
prior consent of the Municip/Olity or the Trustee, so long
as such changes or\modific tions in the Plans and
Specifications, or eleti ns from, or substitutions or
additions to the Prject do not (i) materially and
adversely alter the i or scope of the Project, (ii)
materially impair the tructual integrity and utility of
the structures, (iii materially impair the usefulness or
character of the P '0ject � (iv) conflict with the policies
and purposes of t e Act, (,,) render inaccurate the
representations ade by the,Company in Section 2.02
hereof, or (vi) materially 0 adversely alter the terms of
the Developme Contract datd July 16, 1979, between the
Municipality/and the Company.°
Section 3.04. Withdrawals from the Construction
Fund. The Municipality has authorized and directed the
Trustee to disburse money from the Construction Fund in
payment or reimbursement of items of Cost of the Project
certified by the Company Representative to be due and
payable or to have been paid by the Company to the Persons
entitled thereto; except that until the Completion Date
the Trustee is directed to retain in the Construction Fund
the sum of $ The Trustee shall not disburse any
funds from the Construction Fund, except upon receipt of a
certificate of the Company Representative, which shall be
in writing with a copy mailed to the Municipality, and
shall contain the following:
(1) a statement that no Event of Default
has occurred which has not been cured (provided the
Trustee may waive this condition);
(2) the amount and nature and the name and
address of the payee of each item of Cost certified to
have been paid by and requested to be reimbursed to the
Company (evidence of such payment shall be attached to
such certificate of the Company Representative) ;
(3) an attached statement from the payee of
the amount and nature of each item of Cost certified to.be
due and payable and requested to be paid to a person other
than the Company;
aIV-0
(4) a statement that each item of Cost for
h payment or reimbursement is requested is or was
necessary in connection with the Project, qualifies as a
Cost of the Project under this Agreement and, if for
construction or equipment of the Project, was made or
incurred in accordance with the Plans and Specifications;
(5) that there is no outstanding
indebtedness of the Company, known, after due inquiry, for
labor, wages, materials or supplies, which, if unpaid,
might become the basis of a vendor's lien, or a
mechanics', laborers', materialmen's statutory or other
similar lien, upon the Project or any part thereof, other
than indebtedness to be paid from the Construction Fund
pursuant to said certificate of the Company
Representative; that the Company has obtained partial or
final waivers of mechanic's and materialmen's liens for
each contractor, subcontractor and supplier for all
payments previously made by the Trustee, waiving .any and
all liens fob all work done and materials supplied which
are covered by such payment; and that there has not been
filed with or served upon the Company any notice of any
lien, right to a lien or attachment upon or claim
affecting the right of any Person to receive payment of
the amount stated in such certificate of the Company
Representative which has not been released or will not be
released simultaneously with the payment of such
obligation, except as authorized by Section 4-4 of the
Mortgage;
(6) that no item of Cost requested to be
Paid or reimbursed by such certificate of the Company
Representative has formed the basis for any previous
Payment from the Construction Fund;
(7) that the disbursement of funds from the
Construction Fund in .accordance with such certificate of
the Company Representative will not result in less than
substantially all of the proceeds of the series of Bonds
from which payment is to be made being used for the
acquisition or improvement of land or acquisition,
construction, reconstruction, or improvement of property
of a character subject to the allowance for depreciation
as required by and within the meaning of Section 103(b) (6)
of the Code and the regulations thereunder; and
(8) that the balance remaining in the
Construction Fund after disbursement of moneys therefrom
in accordance with such request will be sufficient to pay
the remaining Costs of acquiring, constructing and
equipping the Project in accordance with the Plans and
Spec if icat ions.
In addition to the specific requirements listed above, the
Company recognizes the right of the Trustee to request and
receive additional documentation prior to disbursing
moneys from the Construction Fund where deemed reasonably
necessary.
Section 3.05. Sums for Cc2,21etion. The
Municipality makes`,no representatiPn or warranty, express
or implied, that th; moneys on deposit in the Construction
Fund will be sufficient to pay t e entire Cost of the
Project. If the Construction Fuhd is not sufficient to
pay the entire Cost of the Pro' ct the Company shall
nonetheless complete the Proje t and pay all costs
incurred therefor witho\�t furtE er reimbursement. No
payments by the Company under/this Section 3.05 shall
reduce the obligations 4 the' Company or offset any other
payment required to be maOe /by the Company hereunder.
Section 3.06. E
The Completion Date shall
shall receive from the Co
ablishment of Completion
the gate on which the
ny all of the following
Date.
Trustee
items.
(a) a cer �ifica'te of the Company
Representative stating ,that tYe acquisition, construction,
installation and equ ip�ing of he Project have been
completed in accordance with th� Plans and Specifications
then in effect and that the entilre Cost of the Project has
been paid or is then/due and payable in accordance with
the certificates of 'the Company Representative submitted
pursuant to Section 3.04 hereof, provided, that minor
defects in the Project may be spec Vf ied which the Company
has ordered to be emedied, or mina items of work and
materials awaitin. seasonal completion may be specified,
which spec if icat. on shall include they amount, not to
exceed 1 of the%�Loan, required to remedy such defects or
to be seasonally completed; and that t`he Project conforms
to all applicable zoning, planning and\`building
regulations and is suitable and sufficient for efficient
operation for :the purpose for which the \Project will be
used, but that the Company Certificate is given without
prejudice to/any rights against third parties which exist
at the date ;thereof or which may subsequently come into
being;
r (b) a certificate of the Company
Representative listing and identifying by serial number or
by some other method acceptable to the Trustee\\all items
r
r" \
-19-
Cost of the Project: any and all sums of money
required to acquire, construct, install and equip the
Project, including the following:
A. the expenses of preparation of the Plans and
Specifications and of all other architectural,
engineering, testing and supervisory services incurred and
to be incurred in the planning, construction, equipping
and completion of the Project;
B. premiums on all insurance relating to
construction during the period of acquisition,
construction and equipping of the Project to the extent
that such premiums are not paid by any contractor;
C. the contract price of all labor, services,
materials, supplies, equipment and remodeling furnished
under any contract for construction in accordance with the
Plans and Specifications;
D. all expenses incurred in seeking to enforce
any remedy against any contractor, any subcontractor or
any surety in respect of any default under any contract
for construction or equipping of the Project;
E. the cost of all other labor, services,
materials, supplies and equipment necessary to complete
the acquisition, construction, installation and equipping
of the Project;
F. all interest accruing on money borrowed by
the Company for financing of the Cost of the Project,
including interest during construction and for not
exceeding six months after completion of construction on
the Series 1979 Bonds to the extent not payable from
proceeds of the Bonds credited to the Bond Fund;
G. all fees and expenses of the Trustee and any
Paying Agent that become due during the acquisition,
construction and equipping of the Project;
H. the initial or acceptance fees and expenses
of the Trustee, and all fees and taxes required in
connection with recording or filing this Agreement, the
Indenture and all financing statements;
I. all legal, abstracting, financial and
accounting fees and expenses, underwriters' fees or
commissions, printing and engraving costs and other
expenses incurred in connection with the authorization,
-3-
sale and issuance of the Series 1979 Bonds, and the
preparation of this Agreement, the Indenture, the Mortgage
and all other documents related to the financing of the
Project;
J. without limitation by the foregoing, all
other expenses which constitute necessary expenditures for
the completion of the Project and are authorized by the
Act and this Agreement to be paid from the proceeds of the
Series 1979 Bonds; and
K. all advances, payments and expenditures made
or to be made by the Municipality, the Trustee and any
other Person with respect to any of the foregoing expenses;
Counsel: a Person duly admitted to practice law
before the highest court of any state;
Date of Taxability: that time, as specified in
the determination, ruling, or decision referred to under
the definition of Determination of Taxability herein, that
the interest payable on any series of Bonds becomes
includable in the gross income of a Holder of Bonds of
such series (other than a Holder who is a "substantial
user" or "related person" as such are defined in the Code);
Determination of Taxability: the issuance of a
statutory notice of deficiency by the Internal Revenue
Service, or a ruling of the National Office or any
District Office of the Internal Revenue Service, or a
final decision of a court of competent jurisdiction which
holds in effect that the interest payable on any series of
Bonds is includable in the gross income of a Holder of
Bonds of such series (other than a Holder who is a
substantial user or related person as such is defined in
the Code), but only if the Company has been given notice
of the proceedings and has been afforded the opportunity
to intervene on or contest the same, either directly or in
the name of any Holder, and if the period, if any, for
contest or appeal of such action, ruling or decision by
the Company has expired without any such contest or appeal
having been properly instituted by the Company;
Event of Default: any of the events described as
such in Section 9.01 hereof;
Force Majeure: any one or more of the
following: acts of God; strikes, lockouts or other
industrial disturbances; acts of public enemies; orders or
restraints of any kind of the government of the United
-4-
CERTIFICATE
Northwestern National Bank of
Minneapolis
Northwestern Bank Building
Minneapolis, Minnesota 55480
M
t00979
�E CW
I, Peter J. Throdahl, Company Representative under
the Loan Agreement between the City of Chanhassen, Minnesota,
and Lyman Lumber Company (the "Company"), dated as of September
1, 1979, hereby certify pursuant to Section 3.04 of the Loan
Agreement that as of November 2 1979:
(1) no Event of Default has occurred under the
Loan Agreement which has not been cured;
(2). the amount and nature, and the name and address
of the payee, of each item of Cost previously paid by and now
requested to be reimbursed to the Company are:
Amount and Nature
of Cost
$2,000.00 - Trustee Fee
$15,528.75 - General Contractor
$812.00 - Bonds
$3,531.84 - Official Statement Printing
$3,000.00 - Mortgage Registration Tax
$654.64 - Planning.& Engineering
$25,527.23
Name and Address
of Payee
Northwestern National Bank
Volp Construction Co.
2125 Cheshire Lane No.
Mpls, MN 55441
Midwest Bank Note Company
16580 Northville Road
Plymouth, Michigan 48170
K.F. Merrill Company
1731 University Ave.
St. Paul, MN 55104
Hennepin County Finance Director
B RW
2829 University Ave. S.E.
Mpls, MN 55414
a
(3) the amount and nature of each item of Cost due
and payable and requested now to be paid to a person other
than the Company are:
Name and Address
___ of Pay; ee Nature of Cost Amount
Statements from the persons listed in this paragraph -are attached;
(4) each item of Cost for which payment or reim-
bursement is requested is or was necessary in connection with
the Project, qualifies as a Cost of the Project under the
Loan Agreement and, if for construction or equipment of the
Project, was made -or incurred in accordance with the Plans
and Specifications;
(5) there is no outstanding indebtedness of the
Company, known, after due inquiry, for labor, wages, materials
or supplies, which, if unpaid, might become the basis of a
vendor's lien, or a mechanics', laborers', materialmen's
statutory or other similar lien, upon the Project or any
part thereof, other than indebtedness to be paid from the
Construction Fund pursuant to this certificate; the Company
has obtained partial or final waivers of mechanic's and
materialmen's lions for each contractor, subcontractor and
supplier for all payments previously made by the Trustee,
waiving any and all liens for all work done and materials
-2-
supplied which are covered by suc11 payment; and there has
not been filed with or served upon the Company any notice of
any lien, right to a lien or attachment upon or claim affecting
the right of any person to receive payment of the amount
stated in this certificate which has not been released or
will not be released simultaneously with the payment of such
obligation except as authorized by Section 4-4 of the Mortgage,
(6) no item of Cost requested to be paid or reim-
bursed by this certificate has formed the basis for any
previous payment from the Construction Fund;
(7). the disbursement of funds from the Construction
Fund in accordance with this certificate will not result in
lss than substantially all of the proceeds of the Series
1979 Bonds being used for the acquisition or improvement of
land or acquisition, construction, reconstruction, or improve-
ment of property of a character subject to the allowance for
depreciation as required by and within the meaning of Section
103(b)(6) of the Code and the regulations thereunder; and
(8) the balance remaining in the Construction Fund
after disbursement of moneys therefrom in accordance with this
certificate will be sufficient to pay the remaining Costs of
acquiring, constructing and equipping the Project in accordance
wth the Plans and Specifications. 'I
Dated: Noyember'2
1979
ompany epresentative
(Copy mailed to: City of Chanhassen
City Hall
710 Laredo Drive
Chanhassen, Minnesota 55317)
-3-
V
yf\
CERTIFICATE
Northwestern National Bank of
Minneapolis
Northwestern Bank Building
Minneapolis, Minnesota 55480
I, Peter J. Throdahl, Company Representative under
the Loan Agreement between the City of Chanhassen, Minnesota,
and Lyman Lumber Company (the "Company"), dated as of September
1, 1979, hereby certify pursuant to Section 3.04 of the Loan
Agreement that as of October 3 1979.
(1) no Event of Default has occurred under the
Loan Agreement which has not been cured;
(2) the amount and nature, and the name and address
of the payee, of each item of Cost previously paid by and now
requested to be reimbursed to the Company are:
Amount and Nature
of Cost
$166,000.00 - Land Acquisition
$8,000.00 - City of Chanhassen
Escrow Fund
$33,312.00 - Rail Switch
$120,038.62 - General Contractor
$327,350.62
Name and Address
of Payee
Gabbert & Gabbert Company
6950 France Ave. South
Edina, Minnesota 55435
City of Chanhassen
Chanhassen, Minnesota 55317
Chicago, Milwaukee, St. Paul and
Pacific Railroad Company
221 Third Ave. South
Minneapolis, Minnesota 55401
Volp Construction Co.
2125 Cheshire Lane N.
Minneapolis, Minnesota 55441
ROCT 1979 _
cC VJL4A%Off'
�__) �girlrj. •t�Y.� .f
(3) the amount and nature of each item of Cost due
and payable and requested now to be paid to a person other
than the Company are:
Name and Address
of Pavee Nature of Cost Amount
Statements from the persons listed in this paragraph -are attached;
(4) each item of Cost for which payment or reim-
bursement is requested is or was necessary in connection with
the Project, qualifies as a Cost of the Project under the
Loan Agreement and, if for construction or equipment of the
Project, was made -or incurred in accordance with the Plans
and Specifications;
(5) there is no outstanding indebtedness of the
Company, known, after due inquiry, for labor, wages, materials
or supplies, which, if unpaid, might become the basis of a
vendor's lien, or a mechanics', laborers', materialmen's
statutory or other similar lien, upon the Project or any
part thereof, other than indebtedness to be paid from the
Construction Fund pursuant to this certificate; the Company
has obtained partial or final waivers of mechanic's and
materialmen's liens for each contractor, subcontractor and
supplier for all payments previously made by the Trustee,
waiving any and all liens for all work done and materials
-2-
v 1% -
supplied which are covered by such payment; and there has
not been filed with or served upon the Company any notice of
any lien, right to a lien or attachment upon or claim affecting
the right of any person to receive payment of the amount
stated in this.certificate which has not been released or
will not be released simultaneously with the payment of such
obligation except as authorized by Section 4-4 of the Mortgage;
(6) no item of Cost requested to be paid or reim-
bursed by this certificate has formed the basis for any
previous payment from the Construction Fund;.
(7) the disbursement of funds from the Construction
Fund in accordance with this certificate will not result in
lss than substantially all of the proceeds of the Series
1979 Bonds being used for the acquisition or improvement of
land or acquisition, construction, reconstruction, or improve-
ment of property of a character subject to the allowance for
depreciation as required by and within the meaning of Section
103(b)(6) of the Code and the regulations thereunder; and
(8) the balance remaining in the Construction Fund
after disbursement of moneys therefrom in accordance with this
certificate will be sufficient to pay the remaining Costs of
acquiring, constructing and equipping the Project in accordance
wth the Plans and Specifications.
Compan, Representative
Dated: _J'� ---' 19f
(Copy mailed to: City of Chanhassen
City Hall
710 Laredo Drive
Chanhassen, Minnesota 55317)
-3-
RUSSELL H. LARSON
CRAIG M. MERTZ
OF COUNSEL
HARVEY E. SKAAR
MARK C. McCULLOUGH
LARSON SAC MERTZ
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
MINNEAPOLIS, MINNESOTA 55402
Donald W. Ashworth
Chanhassen City Manager
Box 147
Chanhassen, MN 55317
Dear Don:
-TELEPHONE
(612)336-9565
September 25, 1979 y h
11�
Re: Lyman Lumber
Development Project
Per your request, we have reviewed the>Midland National Bank
irrevocable letter of credit, effective July 18, 1979, given
as a bond to insure completion of specific items of work under
its -development contract..
We would prefer that the letter of credit identified the develop-
ment contract by specific date of execution. However, we do
approve the credit in its present form.
Please note that the credit expires -July 17, 1980. We suggest
that your file be diari.ed for June 15, 1980.for the purpose of
determining what work remains-t-OF-Ue done under the contract,
whether the letter should be drawn upon, and to afford Lyman lead
time to secure a replacement letter show the need arise.
RHL.:mep
ry t�july yp rF s ,
RUSSELL H- LARSON
Chanhassen City Attorney
SEP o
197
STATE OF MINNESOTA
Commissioner of Banks
(612) 296-2715
Commissioner of Insurance
(612) 296-2488
5L\
0
July 25, 1979
DEPARTMENT OF COMMERCE
500 Metro Square Building
St. Paul, Minnesota'55101
The Honorable Walter B. Hobbs
Mayor of Chanhassen
7610 Laredo Drive
Chanhassen, 10 55317
Re: Chanhassen Industrial Development Revenue Bonds
(Lyman Lumber Company Project)
Dear Mayor Hobbs:
Commissioner of Sec
(612) 296-6848
Executive Secretary
(612) 296-2283
rrum: City Administrator,
R:,1arrad
kisyor
CU!7 �Cil
Pirnncr �.-
wi,c1:; P
ey �-
tLii �i�i;Ct
FFl rtu`ai�l`r:r
Prr�s
This confirms receipt of your amended resolution of April 16, 1979
increasing the bond issue from $1,550,000 to $2,000,000.
The approval of the project by the Commissioner of Securities dated
December 18, 1978 is effective for the amended project.
Very truly yours,
MARY RICE BROPHY p�(��(�/
Commissioner of Securities
MAB:TEC:dw
cc: Verlane L. Endorf
.lUL1979
N RECE ED
C, VILLAGE OF
CHANHASSEN,
`! MINN.4
ZLI�d�'�
AN EQUAL OPPORTUNITY EMPLOYER
3
1
LARSON & MERTZ
111
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
RUSSELL H_ LARSON
MINNEAPOLIS, MINNESOTA 55402
CRAIG M. MERTZ
OF COUNSEL
July 23, 1979
HARVEY E. SKAAR
MARK C. McCULLOUGH
Donald W. Ashworth
Chanhassen City Manager
Box 147
Chanhassen, MN 55317
Re: Lyman Lumber Co.
Letter of Credit
Dear Don:
>� I
17
TELEPHONE
(612) 335-9565
Reference is made to your inquiry whether the Lyman Lumber Company
letter of credit issued by Midland National Bank of Minneapolis,
dated July 18, 1979, in the amount of $23,000, is approved as to
form.
Please be advised that the aforementioned letter of credit is a
legally enforceable document and it is, therefore, approved as to
form.
We render no opinion as to the adequacy of the dollar amount of the
letter.
'Very rul y r.: ,
i T,
/1r1�l,IL.tJ�.1L- ,
TITUSSELL H . LARSON
RHL:mep
JUL 1979
RjECMVED
viILLAGE of
�. MINN. ��
�5q
Lyman Lunar opaoy
the professional builder's
supply center
XIC
I fj� '
300 MORSE AVENUE • MAILING ADDRESS: P. O. BOX 40 • EXCELSIOR, MINNESOTA 55331 TELEPHONE 612-474-5991
THOMAS P. LOWE R. L. DePAUW
President Vice President
112. 47 7
July 19, 1979
Don Ashworth, City Manager
City of Chanhassen
7610 Laredo Drive
Chanhassen, Mn. 55317
RE: LETTER OF CREDIT FOR DEVELOPMENT AGREEMENT
Dear Don:
Enclosed is a Letter of Credit to cover Phase I of our development
agreement. As the bank will only give us a letter for 12 months, we
will have to extend it on July 18, 1980 if necessary.
If you have any questions, please give me a call.
Yours very truly,
LYMA MB R COMPANY
Peter J. Throdahl
Vice President
PJT : dm
enc.
JUL 1979rc
a�
Q
• MIaLANo NATION11L BANK
0 401 Second Avenue; I
Minneapolis, Minnesota . 5480
612/372 7000
Letter of Credit LC-3037
IRREVOCABLE LETTER OF CREDIT
Effective July 18, 1979
City of Chanhassen
Attention: City Manager, Don Ashworth
Dear Mr. Ashworth:
For the account of Lyman Lumber Company, we hereby authorize you to draw
on us at sight up to an aggregate amount of U. S. TWENTY-THREE THOUSAND
AND NO/100 DOLLARS ($23,000.00) prior to July 18, 1980. All drafts
under this Letter of Credit must be endorsed hereon and bear the clause:
."Drawn under Midland National Bank of Minneapolis Letter of Credit LC-3037,
dated July 18, 1979." All drafts shall be accompanied by your certification
that Lyman Lumber Company has failed to perform according to a development
agreement they have with you. Any amount drawn against this Letter of Credit
shall be only those amounts necessary to complete the agreed upon improvements.
This Letter of Credit is irrevocable and wehereby agree with you that each such
draft shall be duly honored by us in accordance with the previous paragraph upon
presentation to us at our bank house.
This credit is subject to the "Uniform Customs and Practices for Documentary
Credits (1974 Revision)for the International Chamber of Commerce Publication
No. 290."
MIDLAND. TIONAL BANK OF MINNEAPOLIS
I
Loren;D. Herbst, Vice President
Dated: July 18, 1979 �.
Ju! 1979
cn RECEIVED
r VILLAGE OP'
CHANHASSEN,
MINN610
2 4
Midland National Bank of Minneapolis
ral
WILLIAM D. SCHOELL �a
CARLISLE MADSON h
JACK T. VOSLER (�
JAMES R. ORRl
HAROLD E. DAHLIN
LARRY L. HANSON
RAYMOND J. JACKSON
WILLIAM J. BREZINSKY
JACK E. GILL
RODNEY B. GORDON
THEODORE D.KEMNA
JOHN W.EMOND
KENNETH E. ADOLF
WILLIAM R. ENGELHARDT
BRUCE C. SUNDING
R. SCOTT HARRI
DENNIS W. SAARI
GERALD L. BACKMAN
Mr. Bob Waibel, Assistant
City Manager/Planner
City of Chanhassen
P. 0. Box 147
Chanhassen, Minnesota 55317
Dear Bob:
SCHOELL & MAOSON, m4c.
ENGINEERS ANO SURVEYORS
1612) 938-7601 • 50 NINTH AVENUE SOUTH • HOPKINS, MINNESOTA 55343
OFFICES AT HURON, SOUTH DAKOTA AND DENTON, TEXAS
July 12, 1979
Subject: Estimate of Costs for Bonding
Program, Phase I, Lyman Lumber
Company
We have reviewed the Layout Plans for the Lyman Lumber
Company Project and also consulted with Bill Ziemer of Lyman
Lumber to determine bonding costs for Phase I development.
These costs include construction of the following:
-- Parking lot and access driveway grading, stabilizing
and bituminous surfacing.
-- Concrete curb and gutter abutting the access driveway
between the frontage road and the dispatch office.
-- Boulevard sodding and seeding.
The total estimated construction cost of the above items is
$23,000.00. This does not include grading and drainage because
this work is substantially complete.
If you have any questions, please let us know.
Very truly yours,
SCHOELL & MADSON, INC.
RBGordon:mkr 47 V y1*1} 18 9�
cc: Craig Mertz,
Bill Ziemer. Lyman Lumber Company����t�
RUSSELL H. LARSON
CRAIG M. MERTZ
OF COUNSEL
HARVEY E. SKAAR
MARK C. McCULLOUGH
Mr. Bob Waibel
Chanhassen City Hall
Box 147
Chanhassen, MN 55317
Dear Bob:
LARSON & MERTZ
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
MINNEAPOLIS, MINNESOTA 55402
June 21, 1979
Re: Lyman Lumber PUD
TELEPHONE
(612) 335-9565
The City Council, at its June 18, 1979 meeting, acted to approve
the Lyman Lumber Company development contract with certain
modifications. The original copy of the development contract
was mailed to you under cover of my letter dated June 5, 1979.
Enclosed you will find replacement pages 2 and 4. Please insert
these replacement pages in the original copy of the contract,
deleting old pages 2 and 4.
If you find the revised development contract to be in order, I
suggest that you forward a copy to the City Engineer for the
purpose of determining the amount of the Phase I letter of credit
contemplated by 910.
Ve y truly yours,
CRAIG M. MERTZ
Assistant Chanhassen City Attorney
CMM:mep
Encl.
cc: Peter Throdahl
.� 6/19/79 Rev.
8. Landscape Plan and Screening From Highway #5. The developer
agrees to prepare and submit to City Staff a final landscape plan which.
shall include location, type and diameters of proposed plantings, and
description of and locations of all screening devices. No landscaping
permit shall be issued and the applicants shall perform no landscaping,
until after said landscape plan has been reviewed by City Staff for
purposes of verifying that said landscape plan is in conformity with
all of the provisions of the within permit..
The grading plan and landscape plan of the developer shall have the
objective of screening Phase I, as described in §3 ab.ove, from view
from State Highway #5, said screening to be. completed no later than
September 1, 1980. In the event that the Millwork Building contemplated
in Phase II of the development is completed on or before September 1,
1980, said screening may also be accomplished in whole or in part by
the erection of said Millwork Building.
9. Reimbursement of Costs. The developer shall reimburse the
City for all costs, including reasonable engineering, legal, planning
and administrative expenses, incurred by the City in connection with
all matters relating to the administration and enforcement of the
within permit, and the performances thereof by the developer.
10. Performance Bond. For the purpose of assuring to the City
that the improvements to be constructed, installed and furnished by the
developer as set forth in ill hereof shall be constructed, installed
and furnished according to the terms of this agreement, and that the
developer shall pay all claims for work done and materials and supplies
furnished for the performance of this agreement, and that the developer
shall fully comply with all of the other terms and provisions of this
development contract, developer agrees.to furnish to th,e City cash
deposits in the amounts shown. on the schedule below, or corporate surety
bonds in said amounts and approved by the City and naming the City as
obligee thereunder, or irrevocable letters of credit approved by the
City in said amounts, all of which shall be conditioned upon the
performance by the developer of its obligations hereunder, said sums being
equal to 110%.of the total cost of such improvements as estimated by
Schoell & Madson, Inc., the City Engineers.
Phase I i UUQ` V a _
Phase II Amount to be established by
addendum: to this contract..
Phase III Amount to be established by
addendum, to this contract
Phase IV Amount to beestablished by
to this contracts
separate
separate
separate addendum
11. Public Welfare. The establishment, maintenance and operation
of the use shall not be detrimental to, nor endanger the public
health, safety, comfort or general welfare.
12. Screening, All trash areas, mechanical equipment, compressors,
and air conditioning equipment, including roof top equipment, shall be
screened from view from State Highway #5.
13. Nuisance.. The activities conducted on the premises shall not
cause the emission of noxious odors, nor cause objectionable noise. The
proposed use shall not be injurious to the use and enjoyment of other
property, nor diminish nor impair property values in the immediate
vicinity.
-4-
�..� 6/19/79 Rev.
r-.
WHEREAS, the Chanhassen City Council has determined that
the development described herein will not have an adverse impact on
the reasonable enjoyment of neighboring properties;
NOW, THEREFORE, in consideration of the foregoing premises
and acceptance by the City of the preliminary development plan, the
City and the developer agree as follows:
1. Improvements by Developer. Developer agrees at its expense
to construct, install and perform all work and furnish all materials
and equipment in connection with the installation of the following
improvements in accordance with the plans described in 112 below:
a. Parking lot and access driveway grading, stabilizing,
and bituminous surfacing;
b. Concrete curbs and gutters abutting all access driveways,
including the access driveway connecting the frontage
road and the dispatch office as depicted on the plans
described in 112 below;
C. storm and surface water drainage;
d. boulevard sodding or seeding;
e. grounds lighting.
2. Scope of Development Governed by Exhibits. The exterior
dimensions, grading plan, and placement of structures shall be sub-
stantially in conformance with the Phase I Grading Cross -Sections
Plan, Phase I Landscape Concept Plan, Staging Plan, Phase I Landscape
Concept Plan, Full Grading & Utilities Plan, and Full Development
Grading Cross -Section Plan, all of which are dated April 18, 1978,
as amended by the Plan Amendment plan dated March 8, 1979, and all of
which were prepared by Bather, Ringrose, Wolsfeld, Jarus, Gardner,
Inc. (BRW), Architects, of Minneapolis, Minnesota, and copies of
which are on file in the office of the City Zoning Administrator.
3. Construction in Phases. The developer may commence con-
struction of Phase I, as depicted on said plans, immediately upon
due execution of the within development contract and issuance of the
requisite building permits. Construction and landscaping shall be
completed in accordance with the following schedule:
Phase I (Distribution Yard, Warehouse,
Umbrella Buildings, Dispatch Office,
Storage Building September 1., 1980
Phase II (Millwork Building) July 1, 1982
Phase III (Component Plant) December 31, 1984
Phase IV (Office Building) December 31, 1986
Screening and Berming from View from
Highway No. 5 September 1, 1980
The architectural design and decorating scheme of the proposed "three -
sided storage buildings," "umbrella buildings," and "warehouse" shall
be in substantial conformance with the developer's architectural render-
ings dated April 7, 1975 and prepared by BRW. The architectural design
and decorating scheme of the proposed "dispatch office" shall be in
substantial conformance with the developer's architectural renderings
dated March 3, 1975. Copies of said renderings are on
-2-
RUSSELL H. LARSON
CRAIG M. MERTZ
OF COUNSEL
HARVEY E. SKAAR
MARK C. MCCULLOUGH
Mr. Bob Waibel
Chanhassen Assistant
Box 147
Chanhassen, MN 55317
Dear Bob:
LARSON SC MERTZ
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
MINNEAPOLIS, MINNESOTA 55402
June 5, 1979
City Planner
Re: Lyman Lumber PUD
TELEPHONE
(612) 335-9565
Enclosed is our proposed revised development contract for the
Lyman Lumber plant development. This document takes into
account the re -phasing approved by the Council on April 16,
1979. I call your attention to §3 of the contract. Our file
indicates that architectural renderings were submitted to the
City for the proposed warehouse, the proposed umbrella buildings,
the proposed three -sided storage buildings, .the proposed dispatch
office, and the proposed millwork building. No architectural
renderings have been submitted for the general office building or
for the component plant. The developer has submitted no specific
building height information for the dispatch office or for the
millwork plant or for the office building.
Because the.Council has indicated that proper screening from
Highway #5 is a key concern, I have made provision in §8 for a
staff review of the screening plan and in §18 for Council review
of all building plans.
No special provision has been made in the contract for collection of
frontage road special assessments. We assume that these assessments
will be levied in the fall of 1979.
The Council approval of July 10, 1978 states that the Council reserves
approval of the final grading plan and final landscape plan. You
should ascertain whether any changes must be made on the developer's
April 18, 1978 grading plan.
If you find this development contract to be in order, you should
forward a copy to the developer for his review. The development
contract should be submitted to the Council together with the April
18, 1978 plans and the March 8, 1979 plans as a consent agenda item.
CMM:mep
Encl.
cc:
Donald W. Ashworth
Vary truly yours� _.
CRAIG M: MERTZ
Assistant City Attorney
Bob Waibel Re: Lyman Lumber -2- 6/5/79
P.S. The contract in §10 contemplates that separate performance
bonds will be established by an addendum to the contract
in the case of Phases II, III and IV.
Craig M. Mertz
069 Affidavit of Publication
Sate of Minnesota )
) ss.
County of Carver )
City of Chanhassen
CITY OF CHANHASSEN
CARVER AND HENNEPIN
Stan Rolfsrud sworn,
being
COUNTIES, MINNESOTA
all the time herein stated has been the publisher and printer of the newspaper known av Carver County Herald and has full
NOTICE OF PUBLIC HEARING FOR
knowledge of the facts herein stated as follows: (1) Said newspaper is printed in the English language in newspaper format
PROPOSED PLAN AMENDMENT FOR LYMAN
and in column and sheet form equivalent in printed space to at least 900 square inches. (2) Said newspaper is a weekly
LUMBER COMPANY
and is distributed at least once a week. (3) Said news paper has 50% of its news columns devoted to news of local interest
CHANHASSEN, MINNESOTA
to the community which it purports to serve and does not wholly duplicate any other publication and is not made up
NOTICE IS HEREBY GIVEN; That the Planning
entirely of patents, plate matter and advertisements. (4) Said newspaper is circulated in and near the municipality which
Commission of the City of Chanhassen meet at 8:15 p.m.
it purports to serve, has at least 500 copies regularly delivered to paying subscribers, has an average of at least 75% of its
on Wednesday, the 4th day of April, 1979, at the City
total circulation currently paid or no more than three months in arrears and has entry as second-class matter in its local
hall, 7610 Laredo Drive, for the purpose of holding a
post -office. (5) Said newspaper purports to serve the City of Chaska in the County of Carver and it has its known
public hearing to consider the development plan
office of issue in the City of Chaska in said county, established and open during its regular business hours for the
amendment for the Lyman Lumber Development Plan
gathering of news, sale of advertisements and sale of subscriptions and maintained by the managing officer of said
on the following described tract of land:
newspaper, persons in its employ and subject to his direction and control during all such regular business hours and at
The east 782.25 feet of the west 1410.40 feet of that part
which said newspaper is printed. (6) Said newspaper files a copy of each issue immediately with the State Historical
of the southwest quarter of Section 7, Township 116,
Society. (7) Said newspaper has compiled with all the foregoing conditions for at least one year preceding the day or dates
Range 22, Hennepin County, Minnesota, lying southerly
of publication mentioned below. (8) Said newspaper has filed with the Secretary of State of Minnesota prior to January 1,
of the right of way of the Chicago, Milwaukee, St. Paul
1966 and each January I thereafter an affidavit in the form prescribed by the Secretary of State and signed by the
and Pacific Railroad.
Subject to an easement for Public right of way pur-
aging officer of said newspaper and sworn to before a notary public stating that the newspaper is a legal newspaper.
poses in State Highway 5 as described in document
He further states on oath that the printed Public Hearing
number 3087392.
All persons interested may appear and be heard at
hereto attached as a part
said time and place. Information regarding this
- -
proposed rezoning is available for inspection at City
hereof was cut from the columns of said newspaper, and was printed and published therein in the English language,
Hall.
BY ORDER OF THE PLANNING COMMISKON
.a
once each week, fort7ne successive weeks; that it was first so published on Wed • the 21 st
Bob Waibel, Asst. Manager -Planner
in County
((��
March 9-
(Pub. the Carver Herald on March 21, 1979)
day of 19 and was thereafter printed and published on every to and
---------------
including the day of 19— and that the following is a printed copy of the lower case alphabet
from A to Z, both inclusive, and is hereby acknowledged as being the size and kind of type used in the composition and
publication of said notice, to wit:
abcdefghi jklmnopgrstuvwxyz
1"a",
Subscribed and sworn to before me this LL day of 19—a
(Notarial Seal)
LORRAINE LANO
NOTARY FUDLIC-MINNESOTA
�.t CARVER COUNTY
My Commission Expires June 29, 1982
wvvvv \ll,vv'WVWVvvlJrA ✓"AI.VVWbVW\,X
Notary public, County, MirmMta
My Commission Expires 19 =2-
W.
CITY OF
CHANHASSEN
7610 LAREDO DRIVE*P 0 BOX 147•CHANHASSEN, MINNESOTA 55317
(612) 474-8885
PLANNING REPORT
DATE: April 12, 1979
TO: Mayor and City Council
FROM: Assistant Manager/Planner, Bob Waibel
SUBJ: Plan Amendment and Modified Industrial Revenue Bond Request,
Lyman Lumber, East Highway 5
PLANNING CASE: P-059
As shown in the attached planning materials, Lyman Lumber has requested
to change a portion of the phasing of their development plans, and
also the structure size of the proposed millwork facility. The
previous development plan phasing was as follows:
Phase I: Distribution Yard Facility.
Phase II: Component Plant
Phase III: Millwork Plant
Phase IV: General Offices
The newly proposed phasing will in effect interchange item 2 with
item 3 of the above. The millwork portion of Phase II has additionally
been amended from the previous plan to be an initial 80,000 square
foot building as opposed to the previous 60,000 square foot building,
with plans to possibly increase the structure to 100,000 square feet
in the future.
In concurrence with the planning commission, this office believes that
the plan amendments are an overall improvement to the Lyman Lumber
facility, and that the request should be approved with the condition
that the screening measures, utilizing either the previously proposed
berm or millwork plant building, ::e completed by September of 1980.
Planning Commissioi -sleeting April 4, 1979 -2-
based on the phasing. The berm and/or building to be completed by
September 1980. Motion seconded by Mal MacAlpine and unanimously
approved.
ARBORETUM DRIVE STREET VACATION: Dr. DeVos, University of Minnesota
Landscape Arboretum, and James. Mattson, University of Minnesota, were
present. The existing home along Arboretum Drive belongs to the
Arboretum. They want to relocate the picnic area, provide additional
parking for the Arboretum, and re-route the road to better fit their
plans: Gates will be installed to secure the Arboretum.
Mal MacAlpine moved to recommend that the -Council approve the vacation
of Arboretum Drive as suggested in the Assistant City Manager/Planner's
letter of April 2, 1979, Planning Case P -605, noting that the Arboretum
is willing to leave a'key with the fire and/or police departments
if they deem it necessary -to enter the premises. 11ption seconded by
Jerry Neher.and unanimously approved.
PROPOSED PRELIMINARY DEVELOPMENT PLAN - DERRICK LAND COMPANY: Several
residents of the araa were present. This 35.2 acres is located on
the south side of Pleasant View Road and borders on the north side
of Lotus Lake. Forty-nine units are proposed with an average lot
size of 24,800 square feet. 'The plan tentatively shows the proposed
collector street. The City Engineer recommended that an emergency
access be designed -to serve the Devil's Slide basin area in Carver
Beach. This access -should be designed to have a 7-ton capacity base
with collapsable barrier and'be sodded over. The Park and Recreation
Commission have met and recommended that the Derrick development plans
provide a conservation easement along the Lotus Lake shore from.
Carver Beach north to the eastern boundary of the property, and that
a pedestrian easement be provided from the northern extent of the
conservation easement to Pleasant View Road along the eastern boundary.
John Shardlow was present. He stated that he has discussed the
recommended changes with staff and finds no problem with them:'
Persons present expressed concern about 'the location of .the proposed
collector street.. It was explained that the Council has ordered a
.feasibility study and when the study is complete more detailed
--information � information will be -known and available. -
Mal MacAlpine moved to direct staff.to order the public hearing
upon the receipt of the completed preliminary development plans, -the
EAW and watershed district comments. Motion seconded by Pat Swenson
and unanimously approved.
GRADING, DRAINAGE; UTILITIES, AND LANDSCAPE PLAN.REVIEW - NEW HORIZON
HOMES, OUTLOTS B AND C, CHAPPARAL: As part of the phasing of the
development are temporary desiltation ponds located north and west
of the.major holding pond to be constructed in the southeast corner
of the active play area. These siltation ponds will be discontinued
after construction progresses and the soils situation becomes stable.
The City Engineer gave his report. - Runoff from about 157.:5 acres
in the Chapparal naturally flow to a creek running eastward to Lotus
Lake. Through construction of a proposed 10.22 acre-foot capacity
storage pond with a -controlled outlet, the maximum flow to the creek
REGULAR PLANNING C, ~FISSION MEETING APRIL 4, �;79
Roman Roos called the meeting to order at 7:35 p.m with the following
members present: Mal MacAlpine, Jerry Neher, and Pat Swenson. Gordon
Freeburg and Walter Thompson were absent.
MINUTES: Pat'Swenson moved to note the March 19, 1979, Council minutes.
Motion seconded by Mal MacAlpine and unanimously approved.
There wi.11'be a special 'Planning Commission meeting April 12, 1979, at
7:00 p.m. to interview candidates. -
PUBLIC HEARING
CARLSON REZONING FROM R-lA TO P-4 ---
The official notice was published in the Carver County Herald. The
purpose of this hearing is to consider -rezoning the Victor-Schmieg farm
from R-lA to P-4: Mike Sorenson and Jerome Carlson were present."- The
Assistant City Manager/Planner recommended approval conditioned upon
a final plat being filed prior to issuance of a building permit.
Pat Swenson moved to close the public hearing: Motion seconded by
Mal MacAlpine and unanimously approved. Hearing closed at 7:51 p.m.
CARLSON REZONING REQUEST: Mal MacAlpine moved to recommend the Council
rezone the Victor Schmieg property -from R-lA to P-4 with the stipulation
that.a plat be filed before a building permit is issued. Motion
seconded by Jerry Neher and unanimously approved.
PUBLIC HEARING
LYMAN 'LUMBER PLAN - A_M..ENDMENT
Roman Roos called the hearing to order at 8:15 p.m. -with the following
interested persons present:
James Mattson, University of Minnesota
Ray Kerber, 18210 West 78th Street; Eden Prairie -
Bill Ziemer, Lyman Lumber
David Ohde, BRW
Peter Throdahl; Lyman Lumber - -
The official notice was published in the Carver County Herald: Lyman
Lumber is requesting a change in the phasing and a.reconfiguration.of.
the lumber distribution yard.
Mal MacAlpine moved to close the public hearing-.- Motion seconded by
Jerry Neher and unanimously approved.. Hearing -closed at 8:20 p.m.
LYMAN LUMBER PLAN AMENDMENT:- Amendments Lyman Lumber is" seeking are,
the building of the distribution yard is still -in Phase -I but step
up Phase II to be built a year from --now and hold -off on the component
plant. They do not intend to construct all the buildings in the
distribution yard right away--as-they-need to do studies on their
materials flow in order to correctly -place some of the umbrella
sheds. Berming will"not heed -to be -done as -the millwork plant will
be constructed in the Spring of 1980. The millwork building will be
phased with an initial 80,000 square feet phased to 100,000 square
feet at a - future date. -
,Terry Neher moved to recommend the Council approve the plan amendment
CITY UF
CHANHASSEN
7610 LAREDO DRIVE*P.O BOX 1470CHANHASSEN, MINNESOTA 55317
(612) 474-8885
PLANNING REPORT
DATE: April 2, 1979
TO: Planning Commission and Staff
FROM: Assistant Manager/Planner, Bob Waibel
SUBJ: Plan Amendment Request
APPLICANT: Lyman Lumber,Inc.
PLANNING CASE: P-059
The planning commission at it's regular March 14, 1979, meeting,
ordered the public hearing to consider this request. The initial
planning report found this request to
be a substantial improvement to the overall phasing of the development
plans for Lyman Lumber, and based on these findings, I. recommend
that the planning commission look with favor upon the applicant's
request and recommend that -.the city council approve the amendment as
proposed.
CITY OF CHANHASSEN
AFFIDAVIT OF MAILING NOTICE OF HEARING
STATE OF MINNESOTA
ss.
COUNTY OF CARVER
Don Ashworth
being first duly sworn, on oath deposes
and says that he is and was on March 19 t 19 79 � the duly qualified and
acting City Clerk -Administrator of the City of Chanhassen, Minnesota; that on said
date he caused to be mailed a copy of the attached notice of hearing on a
Lyman Lumber Plan Amendment
in the
City to the persons named on attached Exhibit "A", by enclosing a copy of said
notice in an envelope addressed to such owner, and depositing the envelopes
addressed to all such owners in the United States mails with postage fully prepaid
thereon; that the names and addresses of such owners were those appearing as such
by the records of the County Treasurer of Carver County, Minnesota, and by other
appropriate records
Don Ashworth, City Manager
Subscrib�c� and sworn to before me
this o� day of yf
Notary Public
KAT�EN J. ENGELHARDT
NOTARY P!_9LIC - PIINNESOTA
CP,ft1'" :4UNTY
.• MY commissn ? ires Oct. 11, 19M
REGULAR PLANNING COM_I. �'SION MEETING MARCH 14,'15
Roman Roos called the meeting to order at 7:50 p.m. with -the following
members present: Gordon Freeburg, Mal MacAlpine, Walter Thompson, Pat
Swenson, and Jerry}, Neher.
NEW MEMBER: Gordon Freeburg moved to recommend the Council -'appoint;
(1) Clark Horn, (2) Tom Droegemueller, (3) Art Partridge or,- (4) Jim Bohn
to the Planning Commission to.replace Tim Stone. Motion seconded 'by Mal
MacAlpine. The following voted -in favor: ' Roman Roos, 'Gordon -Freeburg,
Mal MacAlpine, Walter Thompson, and Pat Swenson. Jerry Neher abstained.
Motion carried.
MINUTES: Walter Thompson moved -to accept the February 14, 1979, Planning
Commission minutes -as written. Motion seconded by Jerry Neher. The
following voted in favor: Roman Roos, Gordon Freeburg, Walter Thompson,
and Jerry Neher. "Pat Swenson and Mal MacAlpine abstained. -Motion carried.
Jerry Neher moved to approve the February 28,.1979, Planning Commission
minutes. Motion seconded by Gordon Freeburg.- The following voted in
favor: Roman Roos, Gordon Freeburg, Walter Thompson, Jerry Neher and
Mal MacAlpine. 'Pat Swenson abstained. Motion carried.
Pat Swenson moved to note the February 20, 1979; Council minutes. Motion
seconded by Walter Thompson and.unanimously approved: .
JEROME CARLSON REZONING: Mr. Carlson is purchasing the Victor Schmieg
farm with the contingency that the property be rezoned industrial/commercia
prior to closing. The farm is located on the south side of Highway 5
directly -across from -Powers -Blvd. 'Future plans for a portion of the 41
acres include a 200,000 square foot building -to house Instant Web.
Mal MacAlpine moved to hold'a public hearing on' -April 4, 1979, at 7:45 p.m.
to consider rezoning from R-lA to-P-4.. Motion seconded by Gordon Freeburg
and unanimously approved.
PLAN AMENDMENT- LYMAN"LUMBER: Peter Throdahl-was-present. Lyman
Lumber is proposing -to change the phasing of their plans and a
reconfiguration of the -distribution yard storage buildings. The phasing
of the distribution yard would remain the same'with the first phase
consisting of the dispatch -office, three -sided shed on the northwest
corner, and a covered warehouse and dock facility. These buildings will
be built this summer. In order,to allow for the.most efficient flow of
material Lyman Lumber requests not to build:the'interior umbrella sheds
until they have determined the best--interior-layout and flow of the yard.
These sheds would be built in -late fall'1979 and spring of-1980. The
first phase of the-mil-lwork plant would begin in --the spring of 1980 and
would be designed to be expanded to 100,000 square feet in the future.
The first phase of the'component plant -would begin after 1981. = Members
generally favored the changes in the phasing as it coincides with what
was originally favored in 1975.
Jerry Neher moved to hold a public hearing on April 4, 1979, at 8:15p.m.
to consider amending the Lyman Lumber plan. Motion seconded by Walter
Thompson and unanimously approved.
NORTH CHANHASSEN, EAST/WEST TRANSPORTATION STUDY: Herb Baldwin,
representing Near Mountain properties, and Pat Murphy,. Carver:County Directc
of Public Works,.were present. Members discussed the need for a collector
CITY OF
CHANHASSEN
7610 LAREDO DRIVE*P.O BOX 1479CHANHASSEN, MINNESOTA 55317
(612) 474-8885
PLANNING REPORT
DATE:: March 12, 1979
TO: Planning Commission and Staff
FROM: Assistant City Manager/Planner, Bob Waibel
SUBJ: Plan Amendment for Lyman Lumber PD
APPLICANT: Lyman Lumber
PLANNING CASE: P-059
Petition
Lyman Lumber is proposing to change the phasing of their plans
approved by the City Council in July of last year, and a reconfiguration
of the distribution yard storage buildings, for which a public
hearing must be held for consideration of plan amendment.
Comments
As shown in enclosure 1, the subject property is located approximately
1500 feet east of the intersection of Trunk Highway 5 and Dakota
Avenue on the north side of Trunk Highway 5.
As shown in the attached correspondence of March 8, 1979, from Lyman
Lumber, the proposed changes are quite straight forward. In comparing
the exhibits in your Lyman Lumber file, you will note that a 4500
square foot storage building has been added on the "L" shaped building
in the northwest corner of the property, and that in addition to
changing of phasing on the millwork plant, an additional 20,000 square
feet could possibly be added to the first 80,000 square foot building.
Presently, the watershed district has given approval for the 80,000
square foot millwork plant, and further plan review on behalf of the
watershed district would not be necessary until said 20,000 square
foot addition is being imminently,_ planned: -for..
As you recall, there was an extensive interim berming plan for the
subject proposal for the purpose of screening the distribution yard.
area. Since the construction of the millwork plant is relatively
imminent, this office is amenable to amending the conditional use
permit to allow screening,with either berms or buildings, to be
completed not later than September, 1980.
Planning Commission -2- March 12, 1979
Preliminarily, I see the present plan proposals a much desired
improvement over the initially proposed phasing.
Recommendation
I recommend that the Planning Commission order a public hearing to
consider the plan amendment as proposed by Lyman Lumber Company.
Lyman Lumber Company
the professional builder's
supply center
300 MORSE AVENUE 0 MAILING ADDRESS: P. O. BOX 40 • EXCELSIOR, MINNESOTA 55331 • TELEPHONE 612-474-5991
THOMAS P. LOWE
President
March 8, 1979
Mayor and City Council
City of Chanhassen
c/o Don Ashworth
7610 Laredo Drive
Chanhassen, Mn. 55317
RE: LYMAN LUMBER COMPANY CHANHASSEN DEVELOPMENT
Dear Mayor and City Council:
R. L. DePAUW
Vice President
Since our preliminary plan approval by the City Council in July of 1978, we
have again found it necessary to revise our plans for our Chanhassen project.
This letter is our request for a preliminary plan amendment and to outline
the proposed changes to the previously approved plan.
The plan that was approved last summer was as follows by phase:
I. Distribution Yard and Component Plant. The distribution yard was
to be built in 1979 and the Component Plant in 1979-1980.
II. Millwork Plant. Eventually planned for 80,000 square feet with
construction to start in late 1980.
III. Office Building.
The revised plan actually almost goes back to the plan that was approved
originally in 1975. The main thrust of the new plan deals with its phasing.
Our new phasing would be as follows:
I. Distribution Yard. This remains the same as was approved in July, 1978.
Some earthwork has already been done and work is expected to continue
as soon as conditions warrant this spring. This yard will be phased
in two parts:
A. Basic Periphery Buildings. This would consist of the Dispatch
Office, "Three sided shed" on the Northwest corner, and a covered
Mayor and City Council - City of Chanhassen
March 8, 1979
Page 2
warehouse and dock facility. These buildings will be built this
summer. All surface blacktopping would also be done this summer.
B. Interior Buildings. In order to allow for the most efficient
flow of material we would not build the interior "umbrella"
sheds until we have determined the best interior layout and
flow of the yard. It is anticipated that these buildings would
be built in late fall 1979 and spring of 1980.
II. Millwork Plant. A first phase building of 80,000 square feet would
be constructed starting in the spring of 1980. The building would
be designed to be expanded to 100,000 square feet sometime in the
future. The continued growth of this phase of our business requires
us to speed up the schedule of construction. This coincides with
the -desires of -the council -to have -this building -screen the distri-
bution yard.
III. Component Plant. This plant would most likely be built in two phases.
The first phase would probably be 20,000 square feet and would be
built sometime after 1981. It would be designed to be added on to
up to 40,000 square feet as in the present plan.
IV Office Building. This, as in the last plan, would be built in 1985
or beyond.
In summary, we have delayed the component plant and have speeded up the
schedule on the millwork building. The overall concept remains the same,
but the new phasing better meets the desires of the city.
I believe we have covered other aspects of the development at some length in the
past. Therefore I don't believe it is necessary to repeat them here. However,
if there are any questions, I would be more than happy to answer them.
A final point concerns the Industrial Development Revenue Bonds. We have
previously received permission for use of the bonds on old Phase I. Assuming
that the city approves our amended plan, we would ask the city to pass an
amended bond resolution also. In this we would ask for bonding on the distri-
bution yard and millwork plant and the dropping of the component plant. Also,
we will be asking for an increasein the bonding limit. A detailed proposal in
this regard will be forthcoming soon.
We appreciate your consideration of this amended plan.
Yo s very truly,
UM R C
Peter J. hrodahl
Vice President
PJT:dm
c.c. Planning Commission - City of Chanhassen
c/o Bob Waibel
.ARSON & MERTZ
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA 55402 TELEPHONE
CRAIG M. MERTZ (612) 33S-9S6S
OF COUNSEL March 2, 1979
HARVEY E. SKAAR
MARK C. McCULLOUGH
Donald W. Ashworth
Chanhassen City Manager
Box 147
Chanhassen, MN 55317
Re: Lyman Lumber PUD
Dear Don:
Russ has asked me to comment on Lyman Lumber's letter of February
28, 1979. The develoment plans which the City Council approved
on July 10, 1978 provided the following phasing: Phase I - dispatch
office, umbrella buildings, warehouse, and component plant; Phase II -
millwork plant; Phase III - general office. Lyman Lumber apparently
now desires to build the millwork plant first.
From an aesthetics standpoint, the millwork facility is probably the
more desirable of the first two phases. If Lyman Lumber chooses to
pursue this change, it should be presented to the Planning Commission
and Council as a development plan amendment. The architectural con-
figuration of the millwork plant as approved by the City Council is
depicted on page 15 of Lyman's March 3,.1975 preliminary. development
plan booklet.
CIS' T: mep
Very truly yours,
CRAIG M. MERTZ
Assistant Chanhassen City Attorney
�p 45
6 T�
^� 9
pp �ARr979 N.
l t �G,Viet LA.)A E A
�s � Nh►A3 � ` 'J
CITY O
CHANHASSEN
7610 LAREDO DRIVEOP 0 BOX 1479CHANHASSEN, MINNESOTA 55317
(612) 474-8885
MEMORANDUM
DATE: December 7, 1978
TO: City Manager, Don Ashworth and Assistant City Attorney, Craig
Mertz
FROM: Assistant City Planner, Bob Wa'bel
SUBJ: Lyman Lumber PUD
PLANNING CASE: P-059
This memo is in reference to the Council reservation of approval
for the final grading and landscape plans for the Lyman Lumber
facility on East Highway 5.
During the plan review of this case, I reviewed the grading and land-
scape plans,for the most part, with the intention of conveying the
probable visual impact of the facility after first phase construction.
I noted that a good portion of the metal sheds within the complex
will be visible from Highway 5 despite extensive berming, that the
sheds forming the northwestern boundary of the property will be totally
unscreened, and that the trees on the eastern boundary should be
retained for screening and aesthetic purposes. As far as grading is
concerned, I do not believe that on site grading will have any effect
on drainage since the lion's share of the first phase will be imper-
meable. Since the subject plans received watershed district approval,
I would assume they have met the pertinent hydrological criteria.
After observing the recent construction activities on the site, I
do feel that staff recommendations were disregarded and the plans
largely misrepresented with respect to the trees along the eastern
boundary of the property. I anticipate that the first phase of this
development will be visually profound,and inconsistent to the
surrounding developments when this area is 100% absorbed.
Concerning the council's reservation of grading and landscape
approval, I assume that no changes of grading would be necessary for
engineering or hydrologic purposes, however, I feel that in regards
to landscaping, this reservation should be continued so that when the
visual impact of the development is fully realized, we may yet
utilize landscaping techniques that will deal with any problems most
effectively.
f
RUSSELL H. LARSON
GRAIG M. MERTZ
OF COUNSEL
HARVEY E.SKAAR
MARK C. McCULLOUGH
LARSON & MERTZ
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
MINNEAPOLIS, MINNESOTA 55402
Donald W. Ashworth
Chanhassen City Manager
Box 147
Chanhassen, MN 55317
Dear Don:
November 27, 1978
�6
TELEPHONE
J (612) 335-9565
Re: Lyman Lumber PUD
P.
' NOV 1978
ReCeIVED
VILLAGE OF
OHANHASSet4
. MlNN. ,w
Enclosed is our proposed development contract for the Lyman
Lumber planned development.
We call your attention to Paragraph 3 of the contract. Our
file indicates that architectural renderings were submitted
to the City for the proposed warehouse, the proposed umbrella
building, the proposed three -sided storage buildings, the
proposed dispatch office, and the proposed millwork building.
No architectural renderings have been submitted for the general
office building or for the component plant. The developer,
has,submitted no specific building height information.for the
dispatch office or for the Phase II buildings or for the Phase
III building. Because the Council has indicated that proper
screening from Highway 5 is a key concern, I have made provision
in 1118 for final review of all building plans.
No special provision has been made in the contract for collection
of frontage road special assessments. We assume that these assess-
ments will be levied in the fall of 1979.
The City Council approval of July 10, 1978 states that the Council
reserves approval of the final grading plan and the final land-
scape plan. Mr. Waibel should ascertain whether any changes must
be made on the developer's April 18, 1978 grading plan.
If staff finds the development contract to be in order, it could
be submitted to the Council together with the April 18, 1978
grading plan as a consent agenda item.
�2ey truly`rsIG . MERTZ
Assistant Chanhassen City Attorney
CMM:mep
Encl.
cc: Bob Waibel
XF-
W
-0
Riley- Purgatory Creek Watershed District
89SO COUNTY ROAD fi4
EDEN PRAIRIE, MINNESOTA 55343
October 30, 1978
Mr. Jim Nelson (.*RE10E3VF.D
c
Bather, Ringrose & Wolsfeld NOV 1978
7101 York:. Avenue South
Edina, Minnesota 55435 LAGE ®FNNASSEN,
Re: Lyman Lumber - ChanhassenMINN.
Dear Mr. Nelson: 8 L 9 CJ!5�
The Board of Managers of the Riley -Purgatory Creek Watershed District
has reviewed the plans and grading and land alteration permit application
dated October 23, 1978 as submitted to the District for the above referenced
project. The Managers approve of the grading and land alteration permit
application subject to the following:
1. Along with the straw bale check dams shown on the erosion control
plans for the project, snow fence must be installed to help
stabilize the bales. These erosion control measures must be installed
prior to the commencement of land alteration and be maintained until
the altered areas on the site have been restored. All altered areas
must be restored by July 1, 1979.
2. The District must be notified 48 hours prior to the commencement
of land alteration.
If you have any questions regarding the Districts comments, please
contact us at 920-0655.
Sincerely,
Ramer t C. Obe.rm/.��yer
BARR ENGINEERING CO.
Engineers for the District
Approved by the
Board of Managers
RCO/111
RILEY-PURGATORY
C EEK WATERSHED DISTRICT
cc: Mr.
Mr.
Conrad Fiskness
Frederick Richards
� _ t Q_
I.- -v eside*Zt
Mr.
Bill Brezinsky
I `���7f
Mr.
Gerald Schlenk
Date: L;
;1-
7610 LAREDO DRIVEsP.O. BOX 147oCHANHASSEN, MINNESOTA 55317
(612) 474-8885
Se-otei .per 7, 1978
i
Lyman Lumber
Attention: Peter Throdahl
.300 Morse Avenue
Excelsior, Mn. 55331
Dear Mr. Throdahl:
As you are aware, Lyman Lumber did deposit $3,000.00 with the City
to cove- legal and fiscal consultant expenses in reviewing your
petition for industrial revenue bond financing. Although funds will
remain in this account after payment of review expenses, the City's
attorney has advised me that such will not be sufficient to pay
additional costs prepairing and/or reviewing resolutions and other
documentation necessary to consumate sale of these bonds. As such,
we are requesting that an additional $3;000.00 be deposited with the
City. Again, no portion of this amount, or the previous $3,000.00,
will be used to pay staff expenses - such being used solely to pay
costs from the attorney and fiscal agent. Sums remaining after the
sale- of the bonds will be returned to you. in addition, copies of
bills received are open to inspection. You may wish to request that
either or both Mr. Larson and Mr. Sanders forward a copy of any billing
statements to you for review and/car your own accounting of escrow
account balances.
After asking for additional monies it may appear odd to congratulate
you on your presentation before the City Council - however, I sincerely
believe you did make an excellent presentation. The staff recommendation
was conservative, but in no way should be construed as negative toward
Lyman Lumber or representatives of the company. I have appreciated
your cooperation and I offer you any cooperation you desire from this
office in making your development a reality.
Sincerely
Don Ashworth
City Manager
DA:n
�r LARSON & MERTZ
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA 55402
CRAIG M. MERTZ (� (]
OF COUNSEL August 29, 1978
HARVEY E. SKAAR
MARK C. McCULLOUGH
Chanhassen City Council
c/o Donald W. Ashworth, City Manager
Box 147
Chanhassen, MN 55317
Re: Lyman Lumber Company
Industrial Development
Revenue Bond Application
Gentlemen:
aas
TELEPHONE
(612) 335-9S65
On August 10, 1978, Lyman Lumber Company submitted its formal
application to the City for the issuance of industrial development
revenue bonds in the amount of $1,550,000 for the construction of
the proposed lumber distribution yard and component plant.
Mr. Ashworth has requested that I review the application and
its accompanying documentation to determine whether the applica-
tion meets the Industrial Revenue Bond Criteria established by
the Resolution of May 1, 1978.
The tests applied in analyzing the Lyman Lumber Company proposal
were those set forth as Minimum Fiscal Criteria in the resolution
and those set forth in the Staff Memorandum of July 20, 1978.
Copies of the resolution and memorandum are attached as Exhibits
A and B. This report will discuss the application of the criteria
and tests to the proposal.
MINIMUM FISCAL CRITERIA
1. The Lyman proposal is for the construction of a distribu-
tion yard and component plant at a total estimated construction cost
of $1,277,630, and, therefore, exceeds the minimum $500,000 require-
ment of Fiscal Criteria No. 1.
2. Based on an analysis of the Lyman financial statements for
1975, 1976 and 1977, the ratio of Lyman earnings to fixed charges
for the three year period prior to application (including interest
Dn the proposed new debt) is an average of 2.74. Therefore, the -
ninimum of Fiscal Criteria No. 2 is met by the applicant. ? �•?
Chanhassen City Council -3- 8/29/78
1., The Lyman long term debt includes $3,113,000 in sub-
ordinated debentures, of which $113,000 is due in September,,1983,
$1,000,000 is due July 1, 1985, and $2,000,OOO is due August 1, 1989.
These are unsecured obligations, and do not have sinking fund reserves
for debt retirement. These heavy debt service requirements should be
given weight in the Council's consideration of the industrial
development financing proposal.
2. Fiscal Criteria No. 4 of the May, 1978 Resolution requires
a ratio of at least 1 to 1 of net worth to outstanding indebtedness.
It has been suggested that this ratio be relaxed to allow for a range
of between 1 to 1 (50% net worth - 50% debt) and 2 to 1 (66-2/3o debt -
33-1/3a net worth). Viewed in the concept of public funding of
industrial development financing, it is my opinion that net worth
should equal or exceed outstanding indebtedness.
3. My comments on the ratio of fair market rental value to
debt service are discussed above under Fiscal Criteria No. 3.
4. The estimated cost of the physical plant (distribution yard
and component plant) totals $1,277,630 (see Estimated Costs - Phase I
attached as Exhibit E). Assuming that the value of the project equals
its estimated cost, the total amount of new financing exceeds the
value of the project [Staff Memorandum (h)].
COMMEN TS
1. Indirect costs are 17.60 of the total bond issue. I believe
Mr. Sander shares my view that the indirect cost percentage is sub-
stantial.
2. The Minimum Fiscal Criteria requires that prior to the
adoption of the resolution authorizing issuance of industrial revenue
bonds, the applicant shall deliver a firm financing commitment. The
investment bankers' letter of August 3, 1978 expresses only "intent
to use our best efforts" to underwrite the bond issue "subject to
terms and conditions established at a later date." We would antici-
pate receiving the firm financing commitment prior to the adoption
of the final resolution authorizing the bonds.
3. The Dunn & Bradstreet observation that debt is heavy in
relation to net worth is significant in considering the financial
feasibility of the proposal.
4. A mortgage revenue note placed with an institutional investor
("private placement") is the preferred method of financing under
Fiscal Criteria No. 3.
Chanhassen City Council -4- 8/29/78
5. One of the Criteria Demonstrating Positive Nature of Use
requires that the applicant demonstrate that the proposed use has a
positive effect on the tax base of the City. It should be noted that
the project area is in that part of the City which lies in Hennepin
County and the Eden Prairie School District. I believe Don Ashworth
will comment on the tax base effect of the project.
6. The prospectus of August 9, 1977 for the offering of the
$2,000,000 of 10% subordinated capital notes discloses that in
June 1975, Lyman purchased approximately 20 acres in Chanhassen
for $166,000. During 1975, the Chanhassen property was transferred
to Building Material Wholesalers, Inc. (BI4W) for the same price paid
by Lyman. On June 30, 1977, all of the outstanding shares of BMW
stock were owned by persons who are also shareholders of Lyman or
relatives of such shareholders. The officers and directors of BMW
are identical to the officers and directors of Lyman. I understand
that the land included in this transaction is the land intended to
be used for this project.
According to Exhibit E (Estimated Costs - Phase I),submitted by Lyman,
the land cost for the project, including improvements to land but not
including buildings or equipment, is estimated to total $311,030.
The purchase price to be paid BMW for the land should be disclosed in
order that the City is informed of the profit, if any, which BMW
will gain in the transaction.
RECOIIMENDAT ION
It is my opinion that the industrial revenue financing proposal does
not meet the necessary fiscal criteria and tests, and, therefore, I
cannot recommend its approval.
Ver tr y ,
RUSSELL H. LARSON
Chanhassen City Attorney
RHL:mep
Encls.
DORSEY, WIN, iORsT., HANNAF uRD, WHITNEY ^HALLADAY
2300 FIRST NATIONAL BANK BUILDING
M I N N E A P O L I S, M I N N E S O TA 55402
#1-FIRST N.:.TIONAL BANK BUILDING (612) 340-2600 115 THIRD STREET SOUTHWEST
ST. PAUL.MINNESOTA 65101 CABLE: DOROW ROCHESTER, MINNESOTA 55901
(6 2)- 227-801.7 (507) 288-3158
TELEX: 29 -0605
TELECOPIER: (6!2) 340-2868
August 22, 1978 VERLANE L. ENDORF
(612) 340-2651
Mr. Russell H. Larson
1900 First National Bank Building
Minneapolis, Minnesota 55402
Re: $1,550,000 Industrial Development Revenue Bonds
(Lyman Lumber Company Project)
City of Chanhassen, Minnesota
Dear Mr. Larson:
By our letter of November 4, J.977, we forwarded, at
the request of Allison -Williams Company, suggested forms of
resolution giving preliminary approval to a project for Lyman
Lumber Company in the City of Chanhassen and a proposed form
of memorandum of agreement to be entered into between the City
and .Lyman Lumber Company. We are now advised that the Company
and Allison -Williams Company have prepared and forwarded for
review by the City Attorney and financial consultant to zhe
City their application for industrial development financing
and supporting documentation, with the request that the City
Council consider giving preliminary approval to the Company's
project at their September 5 regular meeting. In connection
therewith, we are now requested by Allison -Williams Company to
revise the resolution and memorandum of agreement previously
furnished to the City by modifying slightly the description of
the project to be financed and by increasing the amount of
financing requested from $1,000,000 to $1,550,000; copies of
the resolution giving preliminary approval and memorandum of
agreement with those changes included are enclosed with this
letter. Would you please review this resolution and memorandum
of agreement and either advise the City Manager of your approval
of the resolution or contact this office with any suggestions
for changes or modifications. We understand that the approval
of the resolution and memorandum of agreement or a revised reso-
lution and memorandum of agreement reflecting any changes re-
quested by you must be received by the City Manager no later
than August 30, in order for the preliminary resolution to
placed on the agenda for the September 5 meeting.
AUG 1978
� \
ECEIVZO
CIIA 14AS � -
M1NN. sem
�J
'C,
DORSEY, WINDHORST, HAN NAFORD, WHITNEY & HALLADAY
Mr. Russell H. Larson
Page two August 22, 1978
I am forwarding six copies of the resolution giving
preliminary approval and the memorandum of agreement to the
City Manager, together with a copy of this letter. If the
resolution is adopted by the City Council, I would appreciate
receiving five certified copies thereof and also request that
the memorandum of agreement be executed by the Mayor and City
Manager and five copies forwarded to Mr. Peter Throdahl at
Lyman Lumber Company for execution by the Company.
If there are any questions, please do not hesitate
to contact me.
Very truly yours,
�r yel.t
end ra
VLE:dez
Enclosures
cc Bob Sander, Juran & Moody, Inc.
r/Don Ashworth, City Manager
Willys Jones, Allison -Williams Company
TrL-EpHoNE: 333-3475
1443 NORTHWESTERN BANK BUILMNG.
AIINNEAVOI.IS, IIINNE-St)T,1L 554011
Lyman Lumber Company
300 Morse Avenue
P.O. Box 40
Excelsior, Minnesota 55331
ft
Re: Proposed Industrial Revenue Bonds
Gentlemen:
ESTABLISHED — 1919
Concerning the plans of Lyman Lumber Company to construct a new
component plant and distribution yard in the City of Chanhassen,
we are pleased to advise that we have investigated the finances
of your Company and are of the opinion that your program is
economically and financially sound and one which can be financed.
Tlis letter will constitute a preliminary proposal and offer
to underwrite a legally issued Industrial Revenue Bond Issue
of not to exceed $1,550,000 at the interest rates, terms -and
conditions mutually satisfactory to Lyman Lumber Company and
Allison -Williams Company. As a necessary part of the proposed
financing Allison -Williams will work closely with nationally
known recognized bond attorneys as well as your own local attor-
ney in the preparation of the principal documents to be involved
in the transaction which will include, but wh=ch are not limited
to the Loan Agreement, Indenture of Trust, Official Statement
and Purchase Agreement.
Allison -Williams Company will pay its o%an out-of-pocket expenses
including any fees of its own counsel whether or not financing
is completed. All other expenses including insurance, bond
rating, recording fees, all printing, filing, company counsel,
bond counsel, accountants and other consultants will be paid
from the bond proceeds or other available funds.
The bonds will be secured by a first mortgage on the land and
facilities and a Loan Agreement not to exceed 20 years to the
City. We agree to purchase the bondsat a discount of 4% of the
principal amounts of bonds issued,. which dollar amount can be
included in the issue.
T r
i � nt,• a
Contin"ation of Letter to
ALLISON-WILLIAMS COMPANY /
Dated
5043
It is mutually agreed that Allison -Williams Company will act
as your underwriter and advisor in putting together a finan-
cing program which will best suit the needs of the Company
and still allow the beet marketability for the bonds.
ALLISON-WILLIAMS COMPANY
BYE —
Title: Vice President
The foregoing proposal is hereby accepted on behalf of Lyman
Lumber Company this 14i�A day of August, 1970.
LYMAN LUMBER COMPANY
By
Title: __ t -�_t'-
TELEPHONE: 333-3475
ALLISON -WILLIAMS COMPANY
INVESTMENT BANKERS
1445 NORTHWESTERN BANK BUILDING
MINNEAPOLIS, MINNESOTA 55402
August 4, 1978
Mr. Don Ashworth
City Manager
City of Chanhassen
7610 Laredo Drive
Chanhassen, Mn. 55317
Re: Lyman Lumber Company
Proposed Industrial Development Revenue Bonds
Dear Mr. Ashworth:
ESTABLISHED - 1919
In response to Item No. 10 of the "Administrative Memorandum"
Allison -Williams Company certifies that together with the Company's
legal counsel, they will prepare and be responsible for an
Official Statement.
Very truly yours,
ALLISON-WILLIAMS COMPANY
John Nickerson
JDH:aj
L
an Lumber Company
the professional builder's
supply center
300 MORSE AVENUE + MAILING ADDRESS: P. O. BOX 40 • EXCELSIOR, MINNESOTA 55331 • TELEPHONE 612-474-5991
THOMAS P. LOWE
President
August 10, 1978
City of Chanhassen
c/o Donald Ashworth, City Manager
7610 Laredo Drive
Chanhassen, Mn. 55317
RE: APPLICATION FOR INDUSTRIAL DEVELOPMENT FINANCING
Gentlemen:
R. L. DePAUW
Vice President
Lyman Lumber Company agrees to indemnify and save harmless the City of
Chanhassen, and each of its officers, agents and employees from and
against any and all losses, costs, charges, expenses, judgments and
liabilities incurred by it or them while it or they are acting in
good faith to carry out the transaction contemplated by this Agreement
and the Indenture, including, but not limited to the issuance and
sale of the Bonds, and the preparation of a preliminary and final
official statement or prospectus to be furnished to purchasers or
prospective purchasers of the Bonds.
Yours very truly,
LY A LUMB R COMPANY
Peter J Throdahl
Assista t Secretary
PJT:dm
CITY -`OF
7610 LAREDO DRIVE*P.O. BOX 147oCHANHASSEN, MINNESOTA 55317
(612) 474-8885
July 27, 1978
Lyman Lumber Company
Attn: Mr. Peter J. Throdahl
337 Water Street
Excelsior, MN 55331
Dear Mr. Throdahl:
Attached please find the application form for City Council consideration
of industrial development financing proposals.
Three sets of the attached.materials are required to be fully completed.
The original of the application form plus supportive documentation
referred to in the "Administrative Memorandum" are to be signed
and forwarded to this office with the one full set (including supportive
documentation) to be forwarded to both Bob Sander of Juran and
Moody and Russell Larson. Review will be expedited if copies can
be arranged in the order requested; however, since you have previously
sent several larger supportive documents you may wish to call Bob
and Russ to see if they still have them - thus avoiding additional
copy work.
The amount of escrow deposit has been established to be $3,00.0. A
check in this amount.must be forwarded to this office prior to any
review work being completed by the attorney or fiscal advisor. Only
actual bills from these two offices will be charged against the escrow
account with any remaining balance being reimbursed to you.
Should you have any questions, please feel free to contact me.
Sincerey,
Don Ashworth
City Manager
DA:k
LYMAN LUMBER COMPANY
Balance Sheet
June 30, 1978
Assets
Current assets:
$ 547,445
Cash
Receivables:
Trade accounts
8,051,900
Notes receivable
32,011
Other
4,483
Due from affiliates
793,563
8,881,957
Less allowance for doubtful accounts
143,233
8,738,724
Prepaid taxes
156,500
Inventories
1,535,357
Land and improvements held for sale
46,657
Total Current Assets
11,024,683
Property, plant and equipment:
Bond Expense
242,357
Land
19,686
Buildings
401,073
Yard equipment
191,528
Office equipment
214,290
Autos and trucks
503,490
1,572,424
Less accumulated depreciation
788,142
784,282
Notes receivable non -current
219,855
Investment in subsidiary
96,810
Total Assets
$12,125,631
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable to bank
$4,525,000
Current installment of long-term debt
105,986
Notes payable to shareholders and affiliates
71,000
Accounts payable
588,788
Accrued expenses:
Salaries, wages and bonuses
285,621
Profit sharing
80,550
Taxes, other than income taxes
156,745
Other
95,871
Deferred income taxes
82,113
Provision for current tax
384,640
Total current liabilities
6,376,314
Long-term debt excluding current installment
54,930
Capital notes
3,000,000
Stockholders' equity:
Common stock
9,010
Additional paid -in capital
352,632
Retained earnings
2,026,842
Profit net of tax
3729414
2,760,898
Less cost of 540 common shares held in treasury
66,511
Total stockholders' equity
23694,387
Total Liabilities & Net Worth
1$129125,631
UNAUDITED
LYMAN LUMBER COMPANY
Statement of Earnings
6 Months Ending 6/30/78
Net Sales $13,283,451
Cost of Sales 10,505,560
Gross Profit 2,777,891
Total Operating - Administrative & Selling
Expenses 1,604,581
Operating Profit 1,173,310
Other Income 140,113
Other Expense
Interest 315,019
Profit Sharing & Bonus 210,750
Bad Debts 30,600
Total Other Expense 556,369
Net Profit Before Tax 757,054
Provision for Income Taxes 384,640
Net Profit $ 372,414
UNAUDITED
CAPITALIZATION
The capitalization of Lyman at June 30, 1978
Amount
Title of Class Outstanding
Short-term debt 14.696.000
Long-term debt
Note payable to former stockholder, with
interest at 7%, due in annual installments
of $5,986 plus interest through 1983 35,915
10% Subordinated Capital Notes due 1985 1,000,000
10% Subordinated Capital Notes due 1989 2,000,000
Total long-term debt $3,035,915
Stockholders' equity:
Common Shares, $1 par value; authorized,
10,000 shares; issued 9,010 shares $ 9,010
Additional paid -in capital 352,632
Retained earnings 2,399,256
Less cost of 540 shares held in treasury (66,511)
Total stockholders' equity $2,694,387
Total long-term debt and stockholders' equity $5,730,302
CITY OF
CHANHASSEN
7610 LAREDO DRIVEOP.O BOX 1476CHANHASSEN, MINNESOTA 55317
(612) 474-8885
PLANNING REPORT
DATE: June 12, 1978
TO: Planning Commission and Staff
FROM: Assistant City Planner, Bob Waibel
SUBJ: Preliminary Development Plan, Lyman Lumber
APPLICANT: Lyman Lumber Company
PLANNING CASE: P-059/
Petition
The petition before the Planning Commission is to hold a public hearing
as prescribed by ordinance in order to assess neighborhood sentiment
to the proposed development.
Planner's Comments
1. As requested at the Planning Commission meeting of May 24, 1978,
the applicant has submitted a western approach site rendering, and
a statement of findings on plan changes as recommended by city staff.
In light of the inherent difficulties in presenting sight line renderings,
I feel the applicant has satisfied this requirement as best possible.
Additionally, the applicant has stated that the plan changes suggested
by staff would create substantial problems in terms of material flow,
due mainly to the needed change in location of the railroad spur.
From this statement of finding, it appears that the applica.At-- has
investigated distribution yard alternatives as requested by staff,
and has concluded that the original plan as submitted by Lyman Lumber
is most optimal to the operation of the proposed facility.
2. The feasibility study for east Highway 5 prepared by Schoell and
Madson, shows a proposed 28 foot frontage road with concrete curb and
gutter to extend along the southern boundary of the Lyman property.
(Reference enclosure 2). Sanitary sewer and municipal water is proposed
to be extended from the existing line west to the subject property
along the proposed frontage road right of way. It is important to note
at this time,that the city council as of yet,,has not formulated any
decision as to the exact placement of services to these properties
in the eastern reaches of Chanhassen.
Planning Commission -2- June 12, 1978
3. In my planning report of May 19, 1978, I commented on how the
previous plans approved by the Planning Commission for Lyman Lumber
was based on the proposed phasing,and how the plan and the plan phasing
demonstrated it's assured ability to screen the distribution yard
buildings and activities, and also, how the newly proposed phase I
is not architecturally consistent.wi.th the other developments in place
or proposed in this part of the community.
one of the most profound statements in realizing local governmental
powers to determine community image was a decision of the United States
Supreme Court in 1954 which was described as follows: Public safety,
public health, morality, peace and quiet, law and order - these are
some of the more conspicuious examples of the traditional application
of the police powers to municipal affairs. Yet they merely illustrate
the scope of the power and do not limit it —the concept of the public
welfare is brought in inclusive... values that represent our spiritual
as well as physical, aesthetic as well as monitary. It is within the
power of the legislature to determine that the community should be
beautiful as well as healthy, spacious as well as clean, well balanced
as well as carefully patroled...
Thisproperty being zoned P-3, Planned District, predicates that any
developments be carried out in a planned fashion. One cannot deny the
primary importance of phasing in,lcarrying out these plans. For instance,
in many cities, phased plans for residential development have come up
for review with three phases,with the first phase or phases proposed
as higher density housing. Whether or not these higher density phases
are in fact less desirable or a disamenity, the majority of the local
jurisdictions would require that the supposed higher or better usage
i.e. single family residential phase, be in fact the initiating stage
of the entire development.
Decisions such as this, afford the local community an element of
assurance in the establishment at the outset of the alleged higher.and
better use,as opposed to the latter situation where the secondary phases
do not materialize due to change of markets, change of ownership, etc.
Planner's Recommendation
Because of the uncertainty of the effect that the proposed phasing
presents in reference to the interim appearance eminating from the
operation, and the uncertainty of the ultimate development of the property,
I recommend that the Planning Commission move to recommend that the
city council disapprove the preliminary development plan of Lyman Lumber
Company dated April 18, 1978.
Affidavit of Publication
Sate of Minnesota )
) ss.
County of Carver )
William McGarry
being duly sworn, on oath says he is and during
all the time herein stated has been the publisher and printer of the newspaper known as Carver County Herald and has full
knowledge of the facts herein stated as follows: (1) Said newspaper is printed in the English language in newspaper format
and in column and sheet form equivalent in printed space to at least 900 square inches. (2) Said newspaper is a weekly
and is distributed at least once a week. (3) Said news paper has 50% of its news columns devoted to news of local interest
to the community which it purports to serve and does not wholly duplicate any other publication and is not made up
entirely of patents, plate matter and advertisements. (4) Said newspaper is circulated in and near the municipality which
it purports to serve, has at least 500 copies regularly delivered to paying subscribers, has an average of at least 75% of its
total circulation currently paid or no more than three months in arrears and has entry as second-class matter in its local
post -office. (5) Said newspaper purports to serve the City of Chaska in the County of Carver and it has its known
office of issue in the City of Chaska in said county, established and open during its regular business hours for the
gathering of news, sale of advertisements and sale of subscriptions and maintained by the managing officer of said
newspaper, persons in its employ and subject to his direction and control during all such regular business hours and at
which said newspaper is printed. (6) Said newspaper files a copy of each issue immediately with the State Historical
Society. (7) Said newspaper has complied with all the foregoing conditions for at least one year preceding the day or dates
of publication mentioned below. (8) Said newspaper has filed with the Secretary of State of Minnesota prior to January 1,
1966 and each January 1 thereafter an affidavit in the form prescribed by the Secretary of State and signed by the
managing officer of said newspaper and sworn to before a notary public stating that the newspaper is a legal newspaper.
He further states on oath that the printed Public Hearing
hereto attached as a part
hereof was cut from the columns of said newspaper, and was printed and published therein in the English language,
once each week, for one
7 successive weeks; that it was first so published on Wed• the 1St
day of Ma 19! 8 and was thereafter printed and published on every _ to and
including the day of 19 and that the following is a printed copy of the lower case alphabet
from A to Z, both inclusive, and is hereby acknowledged as being the size and kind of type used in the composition and
publication of said notice, to wit:
Subscribed and sworn to before me this
(Notarial Seal)
�hMiFIIIONN-Mo►.rr+rwr.h��
prey
LORRAINE LAND
NOTARY PUBLIC — MINNESOTA
CARVER COUNTY
My Commission Expires June 29, 1982
Notary public, County, Minnes to
My Commission Expires 19�.
CITY OF CHANHASSEN
AFFIDAVIT OF MAILING NOTICE OF HEARING
STATE OF MINNESOTA
COUNTY OF CARVER
Don Ashworth
ss.
}
being first duly sworn, on oath deposes
and says that he is and was on May. 30 , 1978 , the duly qualified and
acting City Clerk -Administrator of the City of Chanhassen, Minnesota; that on said
date he caused to be mailed a copy of the attached notice of hearing on a -Broposed
Development Plan Amendment for Lyman Lumber, Chanhassen, Mn. in the
City to the persons named on attached Exhibit "A", by enclosing a copy of said
notice in an envelope addressed to such owner, and depositing the envelopes
addressed to all such owners in the United States mails with postage fully prepaid
thereon; that the names and addresses of such owners were those appearing as such
by the records of the County Treasurer of Carver County, Minnesota, and by other
appropriate records.
Subscribed and sworn to before me
this day of 19 74.
Notaxy Public
a�aY.;Hau W; s xr„m : tiva a"AAAA&AA aX
K::Y i\LINGELHUTZ
dOTAfiY PUBLIC - WNNESOTA
CARVER COUNTY
MyD:mmission Expires Jzn. 30, 1981
�: i VVtlG'Y� �'VYt7�tlV�'1V`�Yr1'%C��'if��
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE OF PUBLIC HEARING ON PROPOSED
DEVELOPMENT PLAN AMENDMENT FOR LYMAN LUMBER,
CHANHASSEN, MINNESOTA
NOTICE IS HEREBY GIVEN, That the Planning Commission of the City
of Chanhassen, will meet on Wednesday, the 14th day of June, 1978, at
9:15 p.m. at the City Hall, 7610 Laredo Drive, Chanhassen, Minnesota,
for the purpose of holding a public hearing to consider the amending of
development plan for the construction of a component plant and lumber
handling facility on the following described tract of land:
The east 7.82.25 feet of the west 1410.40 feet of that part
of the southwest quarter of Section 7, Township 116, Range
22, Hennepin County, Minnesota, lying southerly of the right
of way of the Chicago, Milwaukee, St. Paul and Pacific Railroad..
Subject to an easement for public right of way purposes in
State Highway 5 as described in document number 3087392.
A plan showing said proposed preliminary development plan is
available for inspection at the City Hall. All persons interested
may appear and be heard at said time and place.
BY ORDER OF THE PLANNING COMMISSION
Bob Waibel, Assistant City Planner
Dated: May 26, 1978
(Publish June 1, 1978, in the Carver County Herald).
MTS Systems Corp.
8&55 Mitchell Road
Eden Prairie, MN 55344;,
Mr. Harry Kerber
18791 W. 78th St.
Eden Prairie, MN 55344''
Mr. Al Kerber
18790 W. 78th St.
Eden Prairie, MN 55344
Mr. Ray Kerber
18210 W. 78th St.
Eden Prairie, MN 55344
City of Eden Prairie
8950 Eden Prairie Rd
Eden Prairie, mN 55344
A
A
Lyman Lumbdr Company
337 Water St.
E xcelsior, PIN 55331
,4
A
I
4
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE OF PUBLIC HEARING ON PROPOSED
DEVELOPMENT PLAN AMENDMENT FOR LYMAN LUMBER,
CHANHASSEN, MINNESOTA
NOTICE IS HEREBY GIVEN, That the Planning Commission of the City
of Chanhassen, will meet on Wednesday, the 14th day of June, 1978, at
9:15 p.m. at the City Hall, 7610 Laredo Drive, Chanhassen, Minnesota,
for the purpose of holding a public hearing to consider the amending of
development plan -for the construction of a component plant and lumber
handling facility on the following described tract of land:
The east .7.82.25 feet of the west 1410.40 feet of that part
of the southwest quarter of Section 7, Township 116, Range
22, Hennepin County, Minnesota, lying southerly of the right
of way of the Chicago, Milwaukee, St. Paul and Pacific Railroad.
Subject to an easement for public right of way purposes in
State Highway 5 as described in document number 3087392.
A plan showing said proposed preliminary development plan is
available for inspection at the City Hall. All persons interested
may appear and be heard at said time and place.
BY ORDER OF THE PLANNING COMMISSION
Bob Waibel, Assistant City Planner
Dated: May 26, 1978
(Publish June 1, 1978, in the Carver County Herald).
Planning Commission and Staff
City of Chanhassen
7610 Laredo Drive
Chanhassen, Minnesota 55317
Re: Preliminary Development Plan for Lyman Lumber
Planning Case: P-059
At the regular Planning Commission Meeting on May 24, 1978 the Lyman Lumber
Company Development Plan was discussed. In the planning report for that
meeting, the Planning Staff suggested a change in the plan in Paragraph 8
under Planners Comments. This letter is in response to that suggestion.
In essence, the suggestion was to realign several buildings in Phase 1 to
provide "one roof line (component plant) which may be more visually
appealing than the numerous roofs that would be presented by the umbrella
sheds from the west approach and that the existing vegetation on the east
could be more effectively utilized for screening the proposed umbrella
sheds".
The first and most major problem with this suggestion is that we would be
mixing two different facilities in carrying out the change. By shifting
the component plant to an east -west alignment we would be putting it
essentially into the middle of our distribution yard. This would create
substantial problems in terms of material flow. Further, it would be lying
in the path of the spur track and therefore blocking its access to the
millwork facility.
The placement of the spur track has been of prime consideration since we
began thinking of this development. There are not many choices in placing
the spur. The location chosen was found to be the best when material flow,
the alignment of the facilities, and the actual area needed for the spur
was considered.
The suggested change in the site plan does not appear to be a viable
alternative for Lyman Lumber.
CITY OF
CHANHASSEN
7610 LAREDO DRIVE *PO BOX 147*CHANHASSEN, MINNESOTA 55317
(612) 474-8885
MEMORANDUM
DATE: May 19, 1978
TO: Planning Commission, Staff and Ray Odde, BRW, 7101 York Ave.
South, Edina,and Peter J. Throdahl, 337 Water Street, Box 40,
Excelsior, MN 55331
FROM: Assistant City Planner, Bob Waibel
SUBJ: Preliminary Development Plan Amendment Review for Lyman Lumber
APPLICANT: Lyman -,Dumber Company
PLANNING CASE:? P-059
The following enclosures are included for the purpose of review
of the subject request.
Enclosures:
1. Community Location Graphic.
2. Letter from Peter J. Throdahl dated April 4, 1978.
3. Planning Commission minutes dated April 9, 1975.
4. Site Plan dated April 18, 1978.
CITY OF
CHANHASSEN
7610 LAREDO DRIVE+P.O BOX 1470CHANHASSEN, MINNESOTA 55317
(612) 474-8885
PLANNING REPORT
DATE: May 19, 1978
TO: Planning Commission and Staff
Ray Ohde, BRW, 7101 York Ave.
Peter J. Throdahl, 337 Water
So. - Edina, Mn. and
Street - P.O. Box 40 - Exc., Mn. 55331
FROM: Assistant City Planner, Bob Waibel
SUBJ: Preliminary Development Plan Amendment Review for Lyman Lumber
APPLICANT: Lyman Lumber Co.
PLANNING CASE: P-059
Petition
Lyman Lumber is requesting that the Planning Commission review the
preliminary development plans dated April 18, 1978. These plans are
revised from previous plans dated March 13, 1975. The Planning
Commission at this time will be considering the newly submitted
plans as ammendments to the plan submitted March 13, 1975.
Background
1. Community Location: As shown in enclosure 1 the subject site is
located between the Chicago -Milwaukee -St. Paul and Pacific Railroad
and Minnesota Trunk Highway 5, approximately 1500 feet east of the
intersection of Dakota Avenue and Minnesota Trunk Highway 5.
2. Existing Zoning: The subject property is presently zoned P-3,
Planned Community Development District. The adjoining property to
the east of the subject property is zoned P-4, Planned Industrial
Development District. The adjoining land to the north of the subject
property that of which is lying within the corporate limits of Eden
Prairie, is zoned rural.
3. Utilities: Sanitary sewer and municipal water are presently
unavilable to the subject property.
Planners Comments
1. As previously mentioned, a previous preliminary development plan
for Lyman Lumber was approved by the Planning Commission on April 9, 1975
and approved by the City Council on April 26, 1975.
Planning Report -^. -2- �iy 19, 1978
2. As indicated in enclosure 2, the salient differencesbetween the two
plans are changes in phasing, and several changes in building sizes
and location. Specifically, Lyman Lumber proposes to construct a
distribution yard and component plant in phase 1, the millwork plant
in phase 2, and the office building in phase 3, vis-a-vis the previous
phasing of the millwork plant in phase 1, lumber distribution yard in
phase 2,: the component plant in phase 3, and the general office in
phase 4.
Other changes are that the component plant would become 40,000
square feet instead of 33,000 square feet, that the millwork. plant
would be increased in size to 80,000 square feet as opposed to the
previous 40,000 square feet, and that the distribution yard and
component plant would involve one or two more acres of land.
3. On April 17, 1978, the City Council directed the City Engineer
to conduct a frontage road and utility feasibility study for the area
north of Minnesota Trunk Highway 5 and east of Dakota Avenue including
the subject property. This study is expected to be completed by June
5, 1978.
4. As noted in the attached Planning Commission minutes of April 9, 1975,
the lumber storage buildings and warehouse structures to be located in
the lumber distribution area,.were to be constructed of colored metal:
No references to be found concerning the architectural treatment of the
component plant.
5. As can be seen in the full development plans, Grading Cross -Section
2-2, the proposed millwork plant and general office, were to be con-
structed so as to screen the component plant, the warehouse, the
umbrella storage facility, and the emminating activity. The new
Phase I, Grading Cross -Section Plan-2, shows the warehouse to be
screened by a berm at the 944 foot elevation from the west property
line to a point approximately 440 feet to the east, and the component
plant to be screened by the existing trees. The existing trees
extend to a point 240 feet west of the east property line. A height
of eye model indicates that approximately the upper ten feet of the
component plant will be visible from Minnesota Trunk Highway 5, at
points west of the existing tree line, and that the upper ten feet
of the umbrella sheds will be visible from the western approaches on
Minnesota Trunk Highway 5.
6. No information has been furnished showing the exact height of
the component plant or warehouse, and additionally no information has
been furnished showing the estimated heights of the three -sided
structure and the umbrella sheds.
7. From a planning perspective, it would seem that the City, at this
time, would be most concerned with the changing and phasing from the
plans presented and approved in 1975. As previously mentioned, the
millwork plant, was to be the first phase and was to be constructed
of either tilt -up concrete or decorative concrete blocks. The
architecture of this building would be done so as to be representative
of what the City of Chanhassen deems to be adequate to the threshold
standards for community image, as well as provide screening for
the component plant, and activities,from the western approaches of
Highway 5. The inclusion of the millwork plant as the first phase was
one of the reasons for previous approval of the development plans.
Planning Report -3- ,4ay 19, 1978
Given the volatile nature of thisindustry, the Planning Commission
should consider the potential appearance of the facility if the
millwork plant phase was unduly prolonged or eliminated. From a
planning perspective, I would prefer to have further assurance
of emminent construction of the millwork facility, for the purposes
of screening and maintaining the architectural consistency and
compatibility demonstrated by the other planned developments for
this area of the community.
8. From the plans submitted to date, it is difficult to perceive if
the visibility of the upper portion of the umbrella sheds will present
a fragmented or cluttered appearance, from the western approach on
Trunk Highway 5. Assuming that the following suggestion would not
present any complications to the operation of a lumber facility such
as that proposed, it would be appropriate to have the umbrella sheds
situated to the east side of the spur because of the greater opaqueness
afforded by the existing vegetation that would screen these sheds from
the eastern approach to the site. This could be complimented by
placing the component plant on an east -west alignment, paralleling
the berm mentioned in number 5 of the comment section. This would
require relocation of the warehouse facility to the north of the
suggested component plant site. The primary objective to carrying
out this shifting of plant structures, is simply to satisfy those
of the opinion that one roof line (component plant) may be more
visually appealing than the numerous roofs that would be presented
by the umbrella sheds from the west approach and that the existing
vegetation on the east could be more effectively utilized for screening
the proposed umbrella sheds.
9. The developer should be required to furnish architectural renderings
--,of all the proposed structures that would include dimensional,and
material information.
10. In captualizing the above stated comments, the Planning Commission
should devote considerable discussion to alternate placement of
structures and to the visual impact that the proposed change in phase
will have upon the community. It is the opinion of this planner, that
this plan, because of the phasing and the uncertainty. of screening
effectiveness on the western approaches, is not acceptable for approval.
Planner's Recommendation
I recommend that the Planning Commission order a public hearing to be
held on June 14, 1978, to consider the preliminary development plan
of Lyman Lumber Co. dated April 18, 1978.
Nkmiaw
!811IL411
PLANNING/ TRANSPORTATION / ENGINEERING /ARCHITECTURE
May 18, 1978
Planning Commission
City of Chanhassen
Chanhassen, MN 55331
The attached drawing indicates the construction type of buildings for the Lyman
Lumber Company development.
The buildings in Stage I will include the following:
(1) Dispatch Office - wood frame construction;
(2) Three -sided Storage Buildings - pole construction with colored
metal siding and asphalt shingles or colored metal roof;
(3) Umbrella Storage Buildings - pole construction with asphalt
shingles or metal roof;
(4) Warehouse - pole construction with colored metal siding and
asphalt shingles or metal roof;
(5) Component Plant - steel arch and wood truss construction with
pitch and gravel roof and color metal siding.
BATHER, RINGROSE,WO SFELD,JARVIS,GARDNER,INC. 7101 YORK AVENUE SOUTH MINNEAPOLIS,MN. 55435 PHONE 612/EO-2300
EXHIBIT A
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
Date: May 1, 1978
RESOLUTION
Resolution:----
_78-21
eaux Geving
Motion by Councilman: NevSeconded by Councilman:
ESTABLISHMENT OF INDUSTRIAL REVENUE BOND CRITERIA
WHEREAS, the Minnesota Industrial Development Act is
designed to:
1) Prevent the emergency or continuance of blighted and
marginal lands.
2) Aid in increasing employment.
c) Increase the Tax Base of a municipality and other taxing
authorities.
4) Protect existing jobs by discouraging migration of
Minnesota firms to other states.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of
the City of Chanhassen, that the following criteria are hereby adopted
as guidelines in considering requests for commercial and industrial
revenue bonds:
Minimum Fiscal Criteria
1) Only new construction or plant expansion amounting to
$500,000 or more would be eligible for financing.
2) The average earnings of applicants for the three (3) year
period prior to application shall be a minimum of 1-1/2 times
fixed charges. For the purposes of the computation of this
ratio "earnings" represent income before taxes on income
and fixed charges. "Fixed Charges" include industrial
revenue financing interest expense as well as all other
interest on other debt, lease obligations and other re-
curring annual fixed charges and expenses. For example,
interest on a $1 million dollar bond issue at 7% is $70,000.
If the applicant had $100,000 in other interest expense and
$50,000 in lease and other recurring expenses (total $220,000),
the average earnings for the past three years before income
taxes and fixed charges shall equal or exceed $330,000.
-1-
3
3) The annual fair market rental value of the building to be
constructed must equal or exceed the total amount of annual
principal and interest due on the industrial revenue financing.
An appraisal may be required to verify fair market rental
value for commercial development issues. The type of financing
shall be a mortgage revenue note which will be sold only to
an instititutional investor. This method of sale shall also
be established for industrial revenue bonds; however, the
city may waive this requirement for industrial revenue bonds
upon the advice of the city staff and fiscal consultant.
4) The net worth of the applicant as reflected by its balance
sheet for the fiscal year immediately preceeding application
shall equal or exceed outstanding indebtedness as determined
by city staff and its fiscal consultant.
5) Prior to the adoption of the resolution authorizing issuance
of the industrial revenue bond or revenue notes, the applicant
shall deliver satisfactory evidence of a firm financing
commitment.
6) The city staff in conjunction with the fiscal consultant
shall adopt administrative procedures.setting forth minimum
documentation which shall be required by the applicant to
assist city council in making its judgment. Additionally,
the city staff shall set an amount of an escrow deposit
required at the time of making application, said deposit
intended to be sufficient to cover all legal, administrative,
and fiscal consultive fees associated with the city council's
consideration of the request. In addition, the applicant
shall agree in writing to pay upon demand such amount of
expense in excess of the escrow deposit.
7) The city reserves the right to deny any application for
municipal industrial development bond or revenue note
financing at any stage of the proceedings prior to the
adoption of the resolution authorizing issuance of industrial
development bonds or revenue notes.
Criteria Demonstrating Positive Nature of Use.
All proposals meeting the minimum guidelines set forth above under
Fiscal Criteria shall be weighed additionally by the council on the
basis of the desirability and positive nature of the proposed use,
employing the following standards:
1) The applicant shall demonstrate that the proposed use has
a positive effect on employment in the City of Chanhassen.
2) The applicant shall demonstrate that the proposed use has
a positive effect on the tax base for the city. A general
guideline is hereby established of market value of land
and building to requested industrial revenue bond or revenue
note financing of 2 to 1.
1WM
3) The applicant shall demonstrate that any proposed commercial
use is compatible with the core area redevelopment plan and
is a priority in the development of the downtown area.
4) The applicant shall demonstrate that the proposed use meets
development criteria in the tax increment district, or meets
the development criteria in an industrial park.
5) The applicant shall demonstrate that the proposed development
will not require further public expenditures for public
improvements.
6) The applicant shall demonstrate that the proposed development
is within the priority development area for the city.
7) The applicant shall demonstrate that the proposed use is
not in conflict with existing businesses and industries
within the city and that said use will have a positive
effect on the economic market within the city.
Passed and adopted by the City Council of the City of Chanhassen this
lst dayIay, 1978
ATTES-0 7�1/
�f
Donald W. Ashworth, City Manager
YES
Walter Hobbs
Dale Geving
Dick Pearson
Nick Waritz
John Neveaux
Walter Hobbs, Mayor
NO
EXHIBIT B
• j
CITY OF CHANHASSEN
INDUSTRIAL DEVELOPMENT FINANCING
STAFF MEMORANDUM
TESTS TO BE APPLIED BY STAFF AND CONSULTANTS IN
ANALYZING INDUSTRIAL AND COMMERCIAL DEVELOPMENT
FINANCING APPLICATIONS.
In analyzing industrial revenue financing applications and
accompanying documents and data, the City Staff and Consultants
may apply the following tests in determining the financial feasi-
bility of the proposals submitted by the applicant:
a. Past three years average ratio of. "earnings" (defined as
income before provision for income taxes and deduction for
"fixed charges") to "fixed charges" (defined as interest
expense and 1/3 of annual rent payments, which are deemed
representative of the interest factor) at least 1-1/2 to
1, on pro forma basis for latest year (including interest
on proposed new debt.)
b. Past three years average ratio of debt service (maximum
annual principal and interest requirements on total long-
term debt, including proposed issue on pro forma basis
for latest year ) coverage at least one to one, using
revenue available for debt service defined as net income
excluding depreciation and interest.
C. Net worth indicated on balance sheet at least equal to
proposed new issue. Capitalization in the range of 50%
stockholders' equity, 50% presently outstanding long-term
debt; to 33 1/3% equity, 66-2/3% debt.
d. Net "working capital" (current assets minus current liabilities)
at least two times all lony-term debt, including proposed new
issue.
e. Working capital ratio (current assets divided by current
liabilities) at least two to one.
f. After the third year of operation, the estimated payroll at
least equal the amount of the proposed financing.
g. Annual fair market rental value at least equal to maximum
annual debt service on proposed new issue.
h. Total amount of new financing is less than the value of the
project.
i. The term of the proposed mortgage indebtedness does not exceed
the useful life of the project.
If Moody's Investors Service or Standard & Poor's Corporation indicate
a senior investment grade rating, many of the above requirements may be
waived.
Dated: 7/20/78 RRS & RHL
EXHIBIT C-1
LYMAN LUMBER COMPANY AND SUBSIDIARY
Consolidated Balance Sheets
December 31, 1977 and 1976
Assets
1977
1976
Current assets:
Cash
$ 757,090
571,808
Receivables:
Trade accounts (note 3)
6,044,636
3,547,332
Current portion of notes receivable
11,011
57,955
Due from affiliated company
28,799
22,684
Due from stockholders
24,520
-
Other
800
1,237
6,109,766
3,629,208
Less allowance for doubtful accounts
(65,000)
(75,000)
Net receivables
6,044,766
3,554,208
Inventories (note 2)
1,235,539
1,066,673
Total current assets
8,037,395
5.192,689
Advance to affiliated company with interest at 8%
-
885,851
Property, plant and equipment:
Land
19,686
6,686
Buildings
389,607
198,624
Yard equipment
193,963
168,862
Office equipment
198.452
113,595
Autos and trucks
503,345
301,387
1,305,053
189,154
Less accumulated depreciation
761,964
625,666
Net property, plant and equipment
543.089
163,488
Land and improvements held for sale
42,480
37,965
Notes receivable, noncurrent
244,365
199,447
Deferred charges (note 4)
260,807
89,126
Other assets
25.540
3.799
$ 9,153,676 6,572,354
See accompanying notes to consolidated financial statements.
EXHIBIT C-2
Liabilities and Stockholders' &,uit, 1977 1976
'urrent liabilities
Notes payable to banks
$ 1,400,000
1,300,000
Current installments of long-term debt
105,986
105,986
Notes payable to shareholders and employees
74,160
640,423
Accounts payable
327,280
186,669
Due to affiliated companies
558,062
551,944
Accrued expenses:
Payroll, bonuses and vacation pay (note 3)
435,141
278,368
Profit sharing
156,000
57,000
Taxes, other than income taxes
118,212
84,817
Other
99,314
161,935
Federal and state income taxes
303,899
17.678
Total current liabilities
3,578,054
3,384,820
)eferred income taxes (note 6)
60,719
74,921
-ong-term debt, excluding current installments
(note 5)
3,192,930
1,323,916
stockholders' equity (note 5):
Common stock of $1 par value..
Authorized 10,000 shares; issued
9,010 shares
9,010
9,010
Additional paid -in capital
352,632
352,632
Retained earnings
2,026.842
1,493.566
2,388,484
1,855,208
Less cost of 540 common shares held in treasury
66.511
66,511
Total stockholders' equity
2,321,973
1,788,697
lommitments and contingencies (notes 8 and 9)
$ 9.153,676 6,572.354
EXHIBIT D
CAPITALIZATION
The capitalization of Lyman at June 30, 1978
Amount
Title of Class
Outstandini
Short-term debt
$4,696,000
Long-term debt
Note payable to former stockholder, with
interest at 7%, due in annual installments
of $5,986 plus interest through 1983
35,915
10°11 Subordinated Capital Notes due 1985
11000,000
10% Subordinated Capital Notes due 1989
2,000,000
Total long-term debt
$3,035,915
Stockholders' equity:
Common Shares, $1 par value; authorized,
10,000 shares; issued 9,010 shares
$ 9,010
Additional paid -in capital
352,632
Retained earnings
2,399,256
Less cost of 540 shares held in treasury
(66,511)
Total stockholders' equity
$21694,387
Total long-term debt and stockholders' equity
$5,730;302
EXHIBIT E
ESTIMATED COSTS - PHASE I
LYMAN LUMBER COMPANY DEVELOPMENT
CITY OF CHANHASSEN
(Includes cost of Industrial Development Revenue Bond Financing)
Distribution Yard Component Plant
Land (including improvements) $186,618 $124,412
Buildings 314,500 390,000
Equipment 5,000 250,000
City Fees 1,700 1,400
Engineering 2,000 2,000
$509,818 $767,812
General Costs
Planning
$ 13,000
Escrows to City
4,000
Bond Attorney
10,000
Corporate Counsel
2,500
Auditors
7,500
Printing
2,000
Trustee
11500
Underwriter's Discount
62,000
Reserve
115,000
Miscellaneous Expenses
55,000
$272,500
Total Cost: $ 509,818
767,812
272,500
$1,550,130
L33YMAN LUMBER COMPANY
77 Water Street • P.O. Box 40 • Excelsior, Minnesota 55331 • 612/474-5991
— The Professional Builder's Supply Center —
• T P. LOWE, President
April 4, 1978
Planning Commission
City of Chanhassen
Chanhassen, Minnesota 55331
• R. A. MAURER, Vice President
• R. L. DePAUW, Vice President -Treasurer
In 1975, the Chanhassen Planning Commission and City Council passed a
preliminary development plan for Lyman Lumber Company for 20 acres in
the city. The development plan as originally proposed contained four
phases spaced over a period of time depending on the growth of our
company.
The phases (in order) were as follows:
1. A Millwork Plant. This plant was planned at 44,000 square
feet on approximately 3.4 acres.
2. A Lumber Distribution yard. This would contain a dispatching
office, truck service garage, and various buildings and sheds
for lumber storage. There would also be outside storage.
This phase would take up approximately 5 to 6 acres.
3. A Component Plant. This was planned at 33,000 square feet
and would have some outside storage. This phase would take
up 4.8 acres.
4. A General Office. This would be a 6,500 square foot building
on 1.4 acres.
This plan left approximately 4 acres for future development. Right of way
took up 1.4 acres.
Due to business conditions that developed in 1975 it became economically
unfeasible to develop the property at that time. Therefore it was decided
to hold the project in abeyence until such time it became feasible. We
feel that we have now reached that time.
In the three years since our original plan was approved several events have
taken place which now require us to change some aspects of the project.
However, these aspects have only to do with phasing and building sizes, and
not the overall concept and utilization of the property.
The changes in phase come about from the fact that our millwork operation is
now in a leased building. The lease expires in the spring of 1981, which
means that millwork cannot be Phase I of our Chanhassen development. Coupled
with this is the fact that our component plant is in need of new facilities.
Obviously we would be putting the new facilities in Chanhassen.
Therefore, our proposal for phasing and building size would be as follows;
I. Distribution Yard and Component Plant, The diStrib.ution yard
would remain the same as originally proposed except perhaps
the addition of 1 to 2 acres of land. The component plant
would be the same except that the building would be 40,000
square feet instead of 33,000 sq. ft.
II. Millwork Plant. This building would be the same except
increased in size to 80,000 square feet from 44,000 square
feet.
III. Office Building. The office building would either be rented out
or would house several office functions for our company. It
is very possible that it would become the general office for
Automated Building Components, an affiliated company.
As you can see, all we have done is to take old Phase I. and move it to new
Phase II. At the same time we have combined old Phases II. and III. and made
them new Phase I. Old Phase IV. would then become new Phase III. Except
for building sizes there are no other anticipated changes in the basic layout
or design of the operating areas. Thus we feel that our new proposal should
not present any problems for the planning commission as our overall develop-
ment plan really has not changed.
By following the above plan we have dropped the approximate 4 acres for future
development. Our company would be utilizing the full 20 acres for our own
operations.
Finally, aside from the development itself, we feel that we would have a
definite economic impact on the city. First is the number of employees we
would employ. At our peak last summer, the facilities that would be located
in Chanhassen employed 106 people. Allowing for expansion and growth we do
not think it is unrealistic to say we could have up to 150 employees in the
foreseable future employed in Chanhassen. Secondly would be the tax base
provided the city. Our initial investment would be between $ 750,000.00 and
$ 1,000,000.00. Our eventual investment could run to a total of $ 2,500,000.00.
We appreciate your consideration of this new proposal.
V r truly yours,
Y ''L BERCth N
Peter Throdahl
Assist nit Secretary
PJT:mjs
LARSON & 1"IIIERTZ
ATTORNEYS AT LAW
1900 FIRST NATIONAL BANK BUILDING
RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA 55402
CRAIG M. MERTZ
OF COUNSEL
HARVEY t.SKAAR
MARK C. McCULLOUGH
February 15, 1978
Donald W. Ashworth
City Manager
Box 147
Chanhassen, Minnesota 55317
Dear Don,
TELEPHONE
(612) 335-9565
Re: Lyman Lumber Company
Industrial Development Revenue Bond
I have received my copy of Peter Throdahl's letter to you wherein
he discusses the methods by which. Lyman Lumber Company proposes to
retire its debt, including any IDR Bonds.
You -will recall that at our meeting in November, you and I expressed
concern as to the ability of Lyman Lumber to service the debt of an
IDR Bond issue when we took into account its other debts as -
reflected on the 1977 subordinated debenture.prospectus and the
unaudited financial statement for the first six months of 1977.
In his letter of February 7, Mr. Throdahl advises that it is the
Lyrltan proposal that principal payments would be made from cash flows
generated by depreciation. I am not prepared to address this concept,
as I do not know whether this is an accepted practice accounting wise.
This leads me to the suggestion that perhaps we should have our fiscal
agents review the Lyman proposal at an appropriate time so that we
might have the benefit of their opinions as to the debt service problem.
The balance sheet of June 30, 1977 shows trade account receivables at
$5.7 million, but we do not know the aging of these receivables and
the collectibility thereof. I am informed by two other sources that
one receivable, possibly as much as $1,000,000.00, is owed by a local
developer who is on very shaky financial grounds, and I would like to
have the opportunity to explore this question with the Lyman people
3.n some depth, and perhaps secure their written statement on the matter.
We do
City,
by a
recognize that an IDR Bond is not a general obligation of the
but you and I both realize the image problems that are created
default, and this is the area of concern to me.
�lv t,a
dFEB 1978 c,2`
CORECEIVED
VILLAC-515 OF
o cHANHASSEPI,
P, MINN. ^I
Donald W. Ashworth Page Two February 15, 1978
Attached for your use in "taking the measure" of the Lyman proposal
is an Allison -Williams check list for investors contemplating an.
IDR investment. I think you will find some of the questions helpful.
In a recent conversation with Peter Throdahl, I was asked to review
for him the points that we discussed in our meeting of November 23,
1977. At that time, we requested the following information:
a. Written proposal spelling out the details.and
phasing of the project.
b. Specific details as to the office building structure
proposed; including number of stories, square
footage, and potential employment census.
C. Financial aspects of handling debt.
To date, I have only received the debt handling report of February 7
discussed in this letter, and I do not know whether the City has
received any of the other requested materials.
Ptruly yoi4 , s ,
/V
RUSSELL H. LARSON
RHL:jep
Enclosure
AN LUMBER COMPANY
I 337 Water Street • P.O. Box 40 • Excelsior, Minnesota 55331 • 612/474-5991
I — The Professional Builder's Supply Center —
• T. P. LOWE, President
February 7, 1978
Confidential
Donald Ashworth
City Manager
City of Chanhassen
Chanhassen, Minnesota 55317
Dear Don:
• R. A. MAURER. Vice President
• R. L. DePAUW, Vice President -Treasurer
As you recall, last November we met with you and Russ Larson
to go over our Chanhassen development. At that time some
questions were raised as to our use of Industrial Development
Revenue Bonds to finance the project. I believe we answered
your questions to your satisfaction, but it was decided that
we would write you a letter giving a general outline of our
financial condition and how we feel the iDR's would fit into
it.
To begi-n with, enclosed is a prospectus for our 1977 Subordinated
Debenture offering. This contains the latest financial statements
that we have, and includes an unaudited stub period for the first
six months of 1977. We will not have our complete 1977 statements
until late this spring as we are currently in the midst of our
audit. However, we feel confident that our after tax earnings will
be about $ 500,000.00. At this point we do not feel that we will
see the growth in 1978 that we saw in 1977. However, we do feel
that business will remain strong and that sales will remain at a
high level. We see no reason why our earnings will not remain
strong as well.
As far as how we propose to handle the debt and service of it, we
feel that we should have no particular problem. The interest would
simply be paid out of earnings. The principal payments would be
made from cash flows from depreciation. Also, Hie would be receiving
such_ things as investment tax credits to help pay the principal.
What more we can say, we are not sure. However, at least one under-
writer has no problem with our financial condition when considering
the underwriting of the bonds.
But what could be of most importance is the project itself and the
security it would provide the city and the bond holders. On any
TDR Bond, it is the land, buildings and equipment that back the bonds.
In using the IDR's we could borrow up to 100% of the value of
these items. In our proposal, we are donating the land, or in
other words taking an equity position from the very beginning.
Thus, the city and bondholders have extra coverage that is not
normally given. Obviously, we do not feel there would ever be
a default, but if there was, it appears that you would be well
covered.
In conclusion, we feel that we can easily handle the IDR Bonds.
We hope that this letter was what you were seeking. If you
should have any further questions, please contact me.
V;. truly yours,
✓Y A LUM R C09 ' Y
eter . Throdahl
Assist it Secretary
c.c. Russell Larson
1900 1st National Bank Building
Minneapolis, Minnesota 55402
PJT:mjs
encl.
ff
k 337 Water Street • P.O. Box 40 • Excelsior, Minnesota 55331 • 612/474-5991
— The Professional Builder's Supply Center =
• T. P. LOWE, President
February 6, 19.78
Donald Ashworth.
City Manager
City of Ch4nh4ss.en
Chanhassen, Mi:nnesot4 55317
Dear Don:
• R. A. MAURER. Vice President
• R. L. DePAUW, Vice President -Treasurer
This letter is to provide background for our appearance at the city council
meeting of February 20, 19-78, Di.ssemi.nate it as you see fit. In 1975,
Lyman Lumber Cor�pany presented to the city a comprehensive development plan
far 20 acres in the city that the company owns. This development was to
contain several facilities and operations of our company.
The development as origi_:nally proposed contained four phases which would
have been spaced over a period'of time depending primarily on the growth of
our business'. These phases in order were as follows:
1. A Millwork Plant. This plant was planned at 44,000 square
feet on approximately 3.4 acres.
2. A Lumber Distribution Yard. This would contain a dispatching
office, and truck sery ice garage as well as various buildings
and sheds for lumber storage. There would also be outside
storage. This phase would take up approximately 5 to 6
acres.
3. A Component Plant. This was planned at 33,000 square feet
and would have some outside storage. This phase would take
up 4.8 acres.
4. A General Office. This would be a 6,500 square foot building
on 1.4 acres.
This plan left approximately 4 acres for future development. Right of way
takes up 1.4 acres.
At a meeting of the city council on April 26, 1975, a motion was passed
granting preliminary development plan approval. This left only the need to
secure final development plan approval. At the same meeting it was indicated
by Thomas P. Lowe of Lyman Lumber Company our intention to use Industrial
Development Revenue Bonds to finance the project.
Due to business conditions that developed in 1975 it became economically
;.infeasible to develop the property at that time. With the delay in development,
several other events have taken place that have now required us to slightly
alter our plans. The remainder of this letter will be a discussion of how we
WOUld propose to change our development plan.
Ir st�E;rnary, there is to be no change in the overall concept and utilization
of the property. What will change is the phasing and the size of some of the
buildings involved. Thus, the order of development is the only real change
from what has already been approved by the city.
The changes in phase come about from the fact that our millwork operation is
now in a leased building. The lease expires in 1980, -which means that mill-
work cannot be Phase I of our Chanhassen development. Coupled nith this is
the fact that our component plant is urgently in need of new facilities.
0MOL;sly we would be'putting the new facilities in Chanhassen.
Therefore, our proposal for phasing and building size would be as follows:
I. Distribution Yard and Component Plant. The distribution yard
would remain the same as originally proposed except perhaps the
addition of ] to 2 acres of land. The component plant would be
the same except that the building would be 40,000 square feet
instead of 33,000 sq. ft.
II. iMi1lwork Plant. This building would be the same except increased
in size to 60,000 to 65,000 square feet from 44,000 square feet.
III. Office Building. The office building would either be rented out
or Would house several office functions for our company. It is
very possible that it would become the general office for
Automated Building Components, an affiliated company.
As you can see, all we have done is to take old Phase I and move it to new
Phase II. At the same time we have combined old Phases II. and III. and made
them ne-A Phase I. Old Phase IU would then become new Phase III. Except for
building sizes there are no other anticipated changes in the basic layout or
design of the operating areas. Thus we feel that our new proposal should not
present any problems for the council as our overall development plan really
has not changed.
Aside from the development itself, we feel that we would have a definite economic
impact on the city. First is the number of employees we would employ. At
our peak last summer, the facilities that would be located in Chanhassen
employed 106 people. Allowing for expansion and growth we do not think it is
unrealistic to say we could have up to 150 employees in the foreseable -Future
employed in Chanhassen.
Secondly YULl be the 'LGx luJe proV -0s d c1 ih ecit-y. (l iin initial 4."vestm_�nt t"ould
be between $ 750,000.00 and $ 1,000,000.00. Our eventual investment could run
to a total of $ 2,500,000.00.
Finally, we still anticipate the use of IDR bonds to finance the project. The
attractiveness of this method of financing is quite compelling and is one of
the reasons we viould like to proceed with the development. Thus the coordination
of the bonds with the planning process is of some importance and a question
we would like the city to consider.
Vel(-y truly yours, "X
fll �-- MI
Peter �` Throdahl 00-
Assis�,.nt Secretaryxss,
PJ T :mis�'�}�
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