6.0. HRSR 03-24-2003 Item If 6
i
City of
Elk
River
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development����
DATE: March 24, 2003 ((
SUBJECT: Downtown Revitalization Project Update
Attachment
• Correspondence from MetroPlains Development dated March 21, 2003.
Following is a status report on a few of the issues related to this project.
• Communications
Staff provided a project report at the Chamber State of the City luncheon on March 18`h
The event was attended by over 80 business persons.
Staff is working to draft a fourth addition to the Downtown Revitalization‘,Q &A newsletter
for distribution in April/May.
Tax Increment Financing Redevelopment Eligibility Assessment
Due to a few delays in a final on-site inspection, the presentation to the HRA of the TIF
redevelopment eligibility has been postponed for a few months. Staff anticipates reviewing a
draft report in early April. The condition of buildings is needed to determine the type and
boundaries of the TIF district.
MetroPlains' Project Activities
The attached correspondence from MetroPlains Development outlines the activities
completed over the past four months of the preliminary redevelopment agreement phase.
MetroPlains is requesting the HRA's consideration of a 6-month extension to the
preliminary redevelopment agreement. A representative from MetroPlains will be present at
the HRA meeting to discuss the request.
MetroPlains has taken reasonable steps to define the feasibility of the proposed projects.
Therefore, staff recommends that the HRA consider an amendment to the preliminary
redevelopment agreement to extend the timeframe by an additional 6 months. With the
• HRA's consensus, staff will work with the attorney to prepare an amendment for the HRA's
formal consideration and action at the April regular meeting.
LAIN
DEVELOPMENT LLC
• PROPERTIES INC
"housing the heartland "
1600 University Avenue,Suite 212
St.Paul,MN 55104-3825
Phone:651-646-7848
March 21, 2003 Fax:651-646-8947
Catherine Mehelich
Director of Economic Development
13605Orono Parkway, Box 490
Elk River, Minnesota 55330
Ref: Downtown Revitalization
Ms. Mehelich,
MetroPlains is requesting for the HRA consider an extension of 6 months for the pre-development
agreement for the revitalization of the downtown project. The current predevelopment agreement
expires on May 1, 2003. This extension will allow us to complete the process that we have begun
and reach the conclusions for development that we all are looking forward to.
• Over the past five months we have been working towards viable options for the revitalization.
Activities have included:
• Meetings with city staff every two weeks
• Confirmation of the two sites in the downtown for revitalization
• Plan development for the two sites including many options looking at phasing,
parking, size of development, number of businesses impacted, size of buildings, sq.
ft. of commercial space and number of housing units.
• Financial feasibility looking at programs, cost of development with various options,
purchase price in comparison with size of development and overall economic
proformas.
• Acquisition determination including discussions with property owners and or
businesses to determine desire to sell and the price point for that option. Discussions
have also included relocation. This has included short and long term options,phasing
and future business plans.
• Data base development summarizing the various agencies, codes, zoning, setbacks,
property owners,businesses, sq.ft. Of commercial currently located in downtown,
assessed values,property lines, contours, transportation including highway 10 and
the railroad and various other site determining factors effecting development.
Some of these activities have been difficult to obtain and have taken more time to determine. We
are working toward real options for both the physical development and the financial viability of
those options. Without having these two in harmony the opportunity to move forward is not present.
• Therefore we are requesting the six-month extension for this purpose. The primary activities in this
extension are to work through the acquisition of properties and summarization of the financial
requirements as it relates to the acquisitions and the concept developments. We anticipate during
this time to bring information before the downtown business owners and merchants, the general
public and the HRA for information sharing and comment.
• We respectfully request consideration of this request for approval.
Sincerely,
LaVerne Hanson Jr.
MetroPlains Development LLC
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