5.0. HRSR 08-02-2004 ITEM # 5.
. I/
• City of
Elk
River
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: August 2, 2004
SUBJECT: Downtown Revitalization Project Update
Attachments
• Project Timetable—Preliminary as of 7-22-04.
• Memo from MetroPlains Re:Lease of The Jungle Salon, dated July 29, 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. At its special meeting June 30th the HRA
adopted a resolution requesting that the City Council schedule a public hearing on the proposed
TIF Plan for the project. Upon the HRA's request the City Council called for a public hearing on
September 20, 2004 to consider adoption of the TIF Plan.
Current Activities
Staff continues to meet twice a month with MetroPlains and Ehlers to discuss ongoing issues
related to the proposed development. The attached master timetable has been drafted to include
key elements of the tax increment financing process and land use approval process. The
timetable is preliminary and is subject to change.
Mary Ippel of Briggs &Morgan is drafting the development agreement consistent with the HRA
and MetroPlains'agreement of key issues. Staff anticipates the development agreement to be
reviewed by the HRA and City Council in October. MetroPlains anticipates starting construction
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of Bluff Block by spring 2005.
Other recent activities include the following:
• MetroPlains has closed on the purchase of the Richard Hinrichs property. The attached
memo from MetroPlains describes the situation with the lease of The Jungle Salon.
• MetroPlains has architects drafting design documents and land use applications.
• MetroPlains has completed a Phase I Environmental Survey and the John Oliver&
• Assoc. have initiated a boundary survey of the Jackson Block property.
• The relocation advisor has had contact with many of the property owners and tenants.
• MetroPlains is continuing discussion of purchase agreements for the remaining 2 parcels
on Bluff Block.
Downtown Revitalization Project Update
August 2,2004 HRA Meeting
Page 2 of 2
• • The Park&Recreation Commission has concurred with MetroPlains'request that park
dedication funds be ear marked for improvements to the city-owned green space and
riverwalk along the Mississippi River.
Communications
A Q&A Newsletter was distributed as an insert to the June 23 issue of the Star News. Project
updates also are provided on a regular basis on the City Website.
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TROPL
METROPLAINS PROPERTIES INC
METROPLAINS DEVELOPMENT LLC
"housing the heartland "
MEMORANDUM
To: Catherine Mehelich From: Vern Hanson
Company:City of Elk River DID: 651-523-1245
cc: Date: 07/29/04
Re: ,Lease of The Jungle Salon
Bluff Block, LLC, closed on its purchase of the property at 641 Main Street, Elk River,
Minnesota on July 1, 2004. Tammy Weeks (d/b/a/ "The Jungle")was a month-to-month
(at-will)tenant of the previous owner for approximately 800 square feet on the ground
floor at that location. Ms. Weeks had no lease with the new owner. Bluff Block, LLC,
offered to enter into a lease with Ms. Weeks.
• Ms. Weeks signed a lease with Bluff Block, LLC, on June 30, 2004. The lease was for
month to month starting July 1, 2004,but also contained a 90 day prior notice provision
before termination could take place by the landlord. Ms. Weeks had been a tenant in the
property since at least February 15, 2003 with the prior owner. Her term lease with the
prior owner lapsed on February 15, 2004.
On approximately July 15, 2004, (15 days after the lease began with Bluff Block, LLC)
Ms. Weeks abandoned the premises and notified the landlord that she would not return,
claiming that she had been damaged by the presence of mold in the basement. Ms.
Weeks also disclosed that she had secured another location for her business across from
the Dairy Queen, and next to A-1 Battery. The attorney for Bluff Block, LLC and Ms.
Weeks attorney are in the process of discussing the situation.
•