5. HRSR 04-04-2011ITEM # 5.
City of
El.
fiver
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: April 4, 201 I
SUBJECT: Discuss Long Term Intentions for HRA Properties - 716 & 720
Main Street
Issue
One of the goals established at the January 2011 HRA meeting was to "Discuss long term
plans and initiatives for the 716 & 720 Main Street buildings".
Background/Discussion
In late December 2006 the HRA entered into a contract fox deed for the purchase of the
buildings at 716 & 720 Main Street, formerly known as the Houlton buildings. The primary
purpose of the HRA's purchase of the property was to take advantage of the non-leveraged
sale as part of a long term positioning strategy to be able to expand surface and possible
deck parking downtown.
In January 2008 the Elk River Area Arts Alliance began occupancy of the 716 Main Street
building under ashort-term lease authorized by the HRA. The building at 720 Main Street
has been vacant since September 2007 when the lease with the auto parts store expired. The
HRA issued final payment on the contract for deed in 2010. The buildings have been
maintained with minimal maintenance over the years due to the HRA's initial intentions.
However, the ongoing structural and mechanical maintenance of the buildings are getting
more extensive and costly (e.g. roof repairs, HVAC systems, etc.), both with and without a
tenant in place.
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The HRA's long term intentions for the buildings will dictate how these short term
maintenance issues will be handled. Staff requests the HRA discuss the following long term
options, and provide direction to staff on any options for further analysis:
Long Term Options
• Create approximately 21 surface parking stalls (not including adjacent building)
• Facilitate ramp or deck parking
• Maintain buildings for longer term lease (10-years) to new business
• Sell buildings for private business development/redevelopment
Issues for Consideration
• What factors will provide the most opportunity to revitalize the downtown area?
Such as:
o Available and convenient parking
o Critical mass of unique businesses, services and amenities
o Mix of building styles, sizes and price points for range of new business
opportunities
• To what extent are they already provided?
• What needs the most improvement?
N:\Departments\Community Development\Economic Development\Houlton Buildings\4.4.11 L,ongTerm Intentions.doc