8.0. HRSR 09-23-2002 Item # 8
•
City of
Elk -..
River
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: September 23, 2002
SUBJECT: Downtown Revitalization Project Update
Attachments
• Memo from Ehlers &Assoc. regarding Preliminary Development Agreement Issues
• Article: "Elk River prepares to renew its downtown",The Business Journal.
September 6, 2002.
• Preliminary Development Agreement
Staff has meet with the selected developer,MetroPlains Development, twice in the last
month to discuss next steps in the project and begin negotiations on the preliminary
development agreement.
The attached memo from Ehlers &Associates summarizes the preliminary development
agreement issues that have been discussed. Staff and the developer have agreed upon a
preliminary development period of 6-months.
A preliminary development agreement will be prepared for the HRA's consideration at its
October 28, 2002 regular meeting. The developer will also provide a project schedule for
the preliminary development phase.
Communications
Throughout the course of this Downtown Revitalization Project, the communications
efforts have been critical to keeping the public informed of the citys' goals, objectives,
process and opportunities for feedback. Staff requests the HRA's direction on future
communication efforts as outlined in the attached memo from Economic Development
Assistant, Heidi Hall.
•
EHLERS
• & ASSOCIATES INC
0 To: Catherine Mehelich,City of Elk River
From: Jim Prosser, Ehlers &Associates
W Date: September 16,2002
Subject: MetroPlains Preliminary Development Agreement Issues
Provided below is a summary of proposed preliminary development agreement issues:
1. The City/HRA will not provide financial assistance to any other developer within designated
developer within the designated redevelopment area for the period of the agreement.
2. The City/HRA will not provide utilize its eminent domain powers to assist any other
developer within the designated redevelopment area for the period of the agreement.
3. The City and MP will need to agree on redevelopment site boundaries.
4. Developer will deposit funds($25,000)to cover costs of City out of pocket expense for
planning, finance and legal fees incurred by the City relating to predevelopment activities.
Fund to be replenished when balance is below$5,000.
5. Agreement will define preliminary development period. This should provide adequate time
to get to final development agreement(typically 4-6 months).
6. A general description of project should be provided, i.e. development program may include
retail,multi-family housing and office.
7. Developer will conduct public open house to solicit public input on refined site plan before
submission with final development agreement.
8. Plans submitted will be in accordance with City design guidelines.
9. The City should communicate willingness to assist with site assembly(eminent domain) and
financial assistance(tax increment financing).
10. Developer and City should identify contingencies including:
o Ability to qualify and establish tax increment district.
o Environmental assessment
o Regulatory approvals
o Title commitments
o Financing
• LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Drive Phone: 651-697-8503 Fax: 651-697-8555
Roseville, MN 55113-1105 Email: jim @ehlers-
inc.com
• o Lender requirements
11. Method of termination. Typically this requires developer to demonstrate good faith efforts to
pursue activities diligently. If not City will provide notice to cure(30 days). If not cured
City can terminate.
•
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