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5.0. HRSR 06-07-2004 ITEM 1 5. • City of Elk River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: June 7, 2004 SUBJECT: Downtown Revitalization Project Update Attachments • Downtown Revitalization Project Description. • Ehlers DRAFT Schedule of Events for Establishment of Tax Increment Financing Plan. • E-mail correspondence from Ms. Linda Wallendorf, dated June 3, 2004. • Rivers Edge Downtown Business Association DRAFT Meeting Minutes, May 12,2004. May 15,2004. • • Information Article "Riverfront Revival—Hastings Development". Pioneer Press. May 24, 2004. • Information Article "The Politics of Downtown Redevelopment". Downtown Idea Exchange. May 15, 2004. Background At its May meeting the HRA approved an agreement with MetroPlains Development on key points to be included in a final development agreement. The key points included the plan for Bluff Block to proceed prior to or simultaneously with Jackson Block construction, as well as other issues related to financial assistance. The attached Project Description details both the proposed Bluff and Jackson Block projects. Next Steps Since the May meeting staff has met with MetroPlains twice to discuss ongoing issues related to the proposed development. A regular meeting schedule between staff and MetroPlains has been established to keep in constant communication about next steps and issues as they arise. Key next steps include the establishment a tax increment financing plan and drafting a final development agreement. Approval of the TIF plan is required prior to executing a final development agreement; therefore the drafting of the agreement will run concurrent to the TIF process. MetroPlains has submitted to the city a deposit of$20,000 to cover expenses related to the establishment of the TIF, drafting the development agreement, engineering and relocation • consultation. Following the recent receipt of deposit, staff has authorized Ehlers and Briggs & Morgan to begin work on the TIF and development agreement. In addition, the city needs to be certain that MetroPlains follows relocation requirements. Staff will authorize a relocation advisor Downtown Revitalization Project Update June 7,2004 HRA Meeting Page 2 of 2 • to meet with the specific property owners,residential and business tenants to establish expectations and inform individuals of their rights under the Uniform Relocation Act. Ehlers &Associates will be facilitating the TIF process and they have provided the attached draft Schedule of Events related to the TIF process only. Staff is working closely with the MetroPlains to create a master schedule,which would include the TIF process,land use approval process, and land sale among other things. MetroPlains has shared with staff their generalized time line for both projects. MetroPlains anticipates starting construction of Bluff Block by Spring 2005. Other recent MetroPlains activities include the following items: • Have secured a purchase agreement for the Richard Hinrichs property • Have authorized architects to begin design documents • Have completed a survey and obtaining title commitments for the Bluff Block properties • Have started a Phase I Environmental Survey of the Bluff Block area • Have held several discussions with potential lenders for the project • Have identified project partners including a market analyst and broker for the Bluff Block for-sale housing units • Continuing discussion of purchase agreements for the remaining 2 parcels on Bluff Block Communications Staff is completing an updated Q&A Newsletter about recent project activities to be distributed • to the public through the Star News in mid June. Project updates also are provided on a regular basis on the City Website. Staff has been recently receiving several inquiries for the Bluff Block for-sale housing units. • a,, OD Gln OGti it /411 litzattDit r City of PROJECT DESCRIPTION Elk � ./'� JULY 2003 �/ iU e J Enhancing Downtown Elk River's Role As a Vital Retail,Commercial and Residential Area. Primary Goal of Downtown Revitalization Project: - To assure the long-term viability of downtown by mak- `s°" .* ing a connection to the rest of the community and by it utilizing the riverfront location. Redevelopment will ` -a 1. . 1� enhance downtown Elk River's role as a residential, retail and commercial area and also revitalize invest- ' i ;. x ment in the downtown business district. ' � .t !I b i'.; ■ f' ` . Development Objectives: �''y ` • Mixed use(residential/retail/service) z'.'„,� s ' , i C-` 1. -.. - . 'X11 • Consideration of the historic context study results N' r ,' ! . ° k 11,r;1. • Strengthen connection to the community '. f r. ' ' • Traditional downtown design elements r►y �, l •- , ..,,. ,.. w.'l t. • Brick, stucco, stone materials with visual breaks in ;. t )° . 11,1-_-,-=--_ the building design ; r ' ` ' - '�r,. } ' s- t i ' • • Increased residential density '° • Pedestrian orientation } Y • Increase exposure to the riverfront _, -r ` � , ''4 • Recognize those buildings that have potential j" ? :�� for rehabilitation - . • Replace market/economic obsolete buildings ♦ BLUFF BLOCK DEVELOPMENT • Multiple types of housing products (i.e. townhomes, senior rental coops, ',v market rate apartments) , • BLUFF BLOCK DEVELOPMENT • s — 10,000 s.f. commercial on first floor along 'w• 4 % Main Street($13/s.f. avg. rent) — 52 units of for-sale housing _. - . — 3 and 4 stories v _ 14,i Is - 70-80 below grading parking stalls for housing i a !r •: '•,el , & commercial residents i , _, 1 ., o, I '' ,�, , 1,,, ,— Connection to City's Riverwalk development '' i?',i. A a' r --- .i•1 VI; , • JACKSON BLOCK DEVELOPMENT '� '°' l' of — 10,000 s.f. commercial on first floor along '" i .� ._ ►.... Ks; Jackson Street and at the corner of Jackson �, ;i� 1111 and Main " , - 9_ ,1N a 1. t%:1. s, V — 32 units rental housing (161-bedroom units at . •!,,;;,r ---_ _r - w.®_...tern- a _ r -a . $600 per month &16 2-bedroom units 11-4 . _ --� - __--;;:.....-- --•,:-- " igli. $700 per month) - • at — 3 stories — Up to 52 below grade parking units for housing residents and commercial and 18 surface units •JACKSON BLOCK DEVELOPMENT SCHEDULE OF EVENTS • THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY AND THE CITY OF ELK RIVER FOR THE MODIFICATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF A TAX INCREMENT FINANCING PLAN FOR DOWNTOWN TAX INCREMENT FINANCING DISTRICT NO. 1 (a redevelopment district) Draft As of June 3,2004 July 6,2004 HRA requests that the City Council call for a public hearing. July 6,2004 City Council calls for public hearing on the Modification of the Development Program for Development D istrict N o. 1 and the e stablishment o f D owntown Tax Increment Financing District No. 1. July 13,2004 Project information, property identification numbers, and maps sent to Ehlers & Associates for drafting documentation. Ehlers & Associates confirms with the City whether building permits have been issued on the property to be included in the TIF • District. August 6,2004 Project information submitted to the County Board for review of county road impacts (at least 45 days prior to public hearing). [Ehlers will fax&mail on August 4, 2004] August 9,2004 Letter received by County Commissioner giving notice of potential redevelopment tax increment financing district(at least 30 days prior to publication of public hearing notice). [Ehlers will fax&mail on August 5, 2004] August 20, 2004 Fiscal/economic implications received by School Board Clerk and County Auditor (at 1 east 3 0 days prior t o p ublic hearing). [Ehlers will fax &m ail o n A ugust 18, 2004] September 6,2004 HRA considers the Plans. August 24, 2004 Planning Commission reviews Plans to determine if they are in compliance with City's comprehensive plan. September 8,2004 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [Ehlers will fax and mail notice and map to the Elk River Star News publication deadline—September 3, 2004 Noon.] • EHLERS ASSOCIATES INC SCHEDULE OF EVENTS—PAGE 2 • THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY AND THE CITY OF ELK RIVER FOR THE MODIFICATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF A TAX INCREMENT FINANCING PLAN FOR DOWNTOWN TAX INCREMENT FINANCING DISTRICT NO. 1 (a redevelopment district) September 20,2004 City Council holds public hearing at 6:30 p.m. on the establishment of the Downtown Revitalization Project Area and Downtown Tax Increment Financing District No. 1 passes resolution approving the Plans. [Council packet information to be sent by — September 13, 2004] ,2004 City authorizes Ehlers to request certification of the TIF District. , 2004 Ehlers & Associates files the Plans with the MN Depaitment of Revenue, requests certification of the TIF District from Sherburne County. • An action under subdivision 1, paragraph (a), contesting the validity of a determination by an authority under section 469.175, subdivision 3,must be commenced within the later of: (1) 180 days after the municipality's approval under section 469.175,subdivision 3;or (2)90 days after the request for certification of the district is filed with the county auditor under section 469.177,subdivision1. S 431 EHLERS & ASSOCIATES INC Page 1 of 1 Heidi Steinmetz From: Ted wallendorf Sent: 6/3/2004 12:25 PM To: hsteinmetz©ci.elk-river.mn.us Subject: Downtown Project Hi.. We are unable to make the meeting but would like to put our thoughts into your revitalization project. If the town is planning on getting rid of the downtown parking lot and turn it into housing, we will relocate our three offices to another city. As of now, our clients find it very difficult to park especially during lunch hours and there is only one handicap parking for this entire downtown area. We cater to the elderly (Senior Estate Specialists is the name of our company) and some need wheelchairs. We run a very profitable business in the Cinema Professional Building with 3 offices that are used every day and have as many as 10 different families seen in one day. If anything, you need to help the downtown businesses by creating more spaces to park rather than taking them away. YOU WILL LOSE MANY BUSINESS PEOPLE!!! Thank you, Linda Wallendorf Get more from the Web. FREE MSN Explorer download : http://explorer.msn.com • • 6/3/2004 J'CR Ia Rivers Edge Downtown Business Association Minutes • May 12, 2004 The meeting was called to order at 8AM at the Elk River Chamber of Commerce Meeting Room. Attending were: Tony Mikols, Heidi Steinmetz, Meryl Gisselquist, Steve King, Cliff Lundberg, Roger Hebeisen, Jeff Gongoll, Lynn Shelton and Wendy Simenson Secretary's Report: The minutes from the last meeting were accepted. Treasurer's Report: The Balance is $2154.50. Old Business City Update: At the May 3rd HRA meeting, the HRA and MetroPlains agreed upon some key points in the revitalization development agreement. The final develoment agreement has not been put forth yet. MetroPlains plan would be to start on the Bluff Block first and then to start on Jackson Square. There was some thought to doing them at the same time. However, a problem could arise regarding suitable room for staging areas for construction were both sites to run simultaneously. The Redevelopment site would have to be approved as a TIF District prior to the development agreement being finalized Garage Sale: The Elk River City Council approved our use of the vacated Utilities Building to hold a garage sale on May 22. Meryl Gisselquist volunteered to chair this event. Invitations to donate items and help staff the sale will be sent out to all downtown businesses. Meryl will be available • May 17, 18, 19 to accept donations. Ads will be placed in the Elk River recreation department city wide garage sale list and a garage sale ad will also be placed in the Star News & Star Shopper. Flower Pots: We had given the city a list of where we wanted the planters to go last fall. A few ended up not being placed where we had requested them to be put. Meryl will be moving the planters to the businesses that had agreed to take care of them. Meryl will be working on flowers after Memorial Day. New Business: The Next Meeting will be held Wednesday June 9,2004, at 8AM at the Elk River Chamber of Commerce Meeting Room. •