HRSR INFORMATION 04-05-2004 •
City of
Elk
River
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development
DATE: April 5, 2004
SUBJECT: Greater MN Housing Fund Employer Assisted Housing
Program
Attachment
• Greater MN Housing Fund Employer Assisted Housing Resource Guide
Background
• Staff attended the Economic Development Association of MN Winter Conference in
January and heard a presentation from the Greater MN Housing Fund highlighting the
successes of the Fund's Employer Assisted.Housing Program (see enclosed Resource Guide
for success stories).
Issue
Employer assisted housing is any housing program, rental or homeownership, that an
employer finances or assists in some way. The Greater MN Housing Fund provides
technical and financial assistance to employers wishing to participate in the program.
Employers in the following communities have participated in the program:
• Rochester • Austin
• Duluth • Winnebago
• Aitkin • Marshall
• Grand Portage • Hoffman
• Pelican Rapids • Tofte
The program is an option that Elk River employers might use to address the housing needs
of their employees.
411 BLUFF BLOCK AND JACKSON BLOCK REDEVELOPMENT
DEVELOPMENT AGREEMENT STRUCTURING CONCEPT
The March 17, 2004 joint meeting of the HRA and City Council concluded with strong
support for the Bluff Block and Jackson Block Developments with a continuing linkage
between the two projects. Although MetroPlains favors de-linking the two
developments, it is willing to proceed with the two projects linked. Its willingness to do
so is based on its understanding that the City and MetroPlains will proceed through the
development process using a partnering approach to resolve issues that may arise during
that process. MetroPlains will take the normal development steps through project design,
construction bidding, marketing, financing and the securing of public approvals.
MetroPlains will use its best efforts to secure site control through purchase agreements
that are contingent upon MetroPlains' receipt of necessary public and financing
approvals.
We anticipate that there are at least two likely decisions that the City and MetroPlains
will be faced with during the development process:
1. It may be mutually beneficial to the City and MetroPlains to close on properties
prior to the start of construction. One reason to do this could be to obtain a price
substantially lower than market value. Another reason could be to allow the
li community to meet the needs of current downtown businesses. However, in order
for MetroPlains to undertake early acquisitions of property MetroPlains' profit
incentive would have to be increased over the level shown in the current
proforma. Also, the City would have to consider participating in the acquisitions
with bond financing.
2. At some point the need for construction sequencing will require the Jackson
Block to proceed prior to the Bluff Block. Proceeding simultaneously with the
construction of both projects would be detrimental to downtown businesses.
Also, the parties acknowledge that downtown residential development normally
leads with rental housing followed by for-sale housing and that construction
activity at the Jackson Block will have a strong positive effect on marketing of the
Bluff Block. The determination on the allowable timing of construction would
have to be made based on verifiable information available at the time and can not
be c onditioned o n p unitive types o f m easures t hat w ill adversely the a ffect the
projects' viability.
M:\larrywo\other\Bluff Block and Jackson Block Redevelopment
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