4.3. HRSR 02-04-2002 Item 4 . 3 .
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City of
Elk.
River
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development(
DATE: February 4, 2002
SUBJECT: Downtown Riverfront Revitalization Project
- Implementation Policies & Next Steps
Attached is a memo from HRA's project consultant,Jim Prosser, Ehlers &Associates for his
discussion of Implementation Policies.
• Following review and discussion, staff recommends the HRA provide consensus on the
implementation policies developed for the project.
Mr. Prosser will also review with the HRA the next steps that staff will be undertaking in the
redevelopment process.
•
JAN. 31. 2002 6: 54PM EHLERS & ASSOCIATES NO. 6256 P. 2
EHLERS
• & ASSOCIATES INC
0 I To: Catherine Mehelich,Director of Economic Development
From: Jim Prosser, Financial Advisor
W Subject: Core CBD Redevelopment
Date: January 31,2002
As Elk River proceeds with redevelopment of the Core CBD area, it is important to consider development
of implementation policies including the following:
1. Proposals for development of multiple areas within the project area should be solicited. Based on
the proposals received the HRA may decide to authorize preliminary development agreements for
a limited number of areas. It is likely that phased development will improve the overall results.
2. Consideration should be given to"preserving"some selected sites for later development. This will
permit the market to appreciate the impact of first phase development and potentially enhance the
City's ability to achieve redevelopment goals.
• 3. Clear expectations regarding land acquisition should be established. Specifically,it is recommended
that the developer will use best faith efforts to negotiate property acquisition. The HRA needs to
be willing to use eminent domain if those efforts fail. The HRA may require the developer to utilize
mediation prior to considering requests for eminent domain.
4. A strategy that encompasses efforts to influence the Highway 10 and related improvements is key
to preserving and perhaps enhancing the ultimate Core CBD redevelopment. Specifically,a design
that included elevation of Highway 10 will have a negative impact on downtown, closing it off
physically and socially form rest of community. The HRA may wish to consider recommendation
to City Council that design alternatives to elevated Highway 10 be explored.
5. Consideration should be given to proceeding with redevelopment RFPs prior to completion of the
historical context study. The proposals will be useful in evaluating alternate approaches to
preserving certain sites. Additionally,the proposals may identify preservation opportunity cost and
benefits to assist in decision making.Actual development in areas containing historically significant
properties could be delayed until the final report is evaluated.
6. The time frame for the current version of the concept refinement and redevelopment strategy should
be expected to last no longer than five years. After that time changing market conditions and base
conditions withing the area will change sufficiently to require concept and strategy adjustment and
update.
7. It is important to forecast the time frame for redevelopment(based on the process outline previously
provided). That time frame should reflect the reality that initial redevelopment is not likely to occur
until mid to late 2003. Further redevelopment will occur in stages and be completed over a three to
seven year period of time. �+
LEADERS IN PUBLIC FINANCE -
3060 Centre Pointe Drive 651.697.8534 fax 651.697.8555
Roseville,MN 55113-1105 diana @ehlers-inc.com
JAN. 31. 2002 6: 54PM EHLERS & ASSOCIATES NO. 6256 P. 3
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Page 2
January 3I,2002
8. It is likely that tax increment or other forms of assistance will be needed to make redevelopment
financially feasible. It is advisable to begin now to assess the ability to qualify the area as a
Redevelopment District and to explore other financial resources.
9. Continued attention to public dialog on the purpose,process and status of redevelopment efforts is
key to maintaining public confidence in the project efforts. A key part of the communication is
forecasting of time frame,upcoming decisions and opportunities for public involvement.
10. The City should carefully monitor potential property acquisition opportunities from willing sellers.
This can help make the redevelopment more affordable due to reduced acquisition and relocation
costs. This m ust be balan ced against
the holding,,ftnancin
costs.Properties that are for sale should
be evaluated for purchase.
11. The Redevelopment Concepts currently being prepared should be considered a "framework" for
developers in preparation of proposals and not blueprints for exactly what will be built. It is likely
that the final redevelopment result will be quite different (and hopefully better) than initial
Redevelopment Concept.
• 12. The results of the Historical Context study should be used during the design stage,after developer
selection. Design alternatives incorporating elements of the finding can be evaluated for design,
market and financial feasabil ity.
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