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8.1. HRSR 09-23-2002 Item # 8.1. City of Elk -�-� River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Heidi Hall, Economic Development Assistant 014 DATE: September 23, 2002 SUBJECT: Downtown Revitalization Project Communication Activities Attachment • DRAFT October 2002 Downtown Revitalization Project Q &A Newsleter Background • It is important to communicate effectively with the public during the revitalization process. Ongoing since January 2002, the following communication efforts have been completed by staff: • Two public open houses held-February&July 2002 • Two Q &A Newsletters distributed in the February and April 2002 issues of the Elk River Star News,which had a distribution of 7,300. In addition, 200 newsletters were distributed at City Hall, the Chamber of Commerce, Elk River Municipal Utilities, the two public open houses, and per request. • Staff interviewed with the editor of the Star News to provide input for a February 2002 article • Several press releases issued to media • Several project updates provided via direct mail and e-mail to people who requested further information on the Downtown Revitalization Project at the two open houses Issue Although 7,500 of both the February and April Q&A newsletters were distributed to the public, another option is that the newsletters be distributed through direct mail. Staff has developed an estimated cost comparison between a newspaper distribution and a bulk mail distribution. • • Insert-Elk River Star News U.S. Postal Service Bulk Mailing 7,500 Quantity 10,000 Quantity Printing $800.00 Printing $950.00 Distribution $300.00 Distribution $1,650.00 Total $1,100.00 Total $2,600.00 Pros Pros -Reaches every person that -Reaches every address in Elk River receives the Elk River Star News -Would be distributed as a stand alone letter (The Star News is free so almost every resident&business receives Cons a copy.) -Does not reach property owners who do not live in Elk River Cons -$1,500.00 estimated price difference between -May be lost in the shuffle of other newspaper insert&bulk mail distribution newspaper inserts -Perceived commitment to continue -Does not reach property owners bulk mail option who do not live in Elk River To date, there has been very few complaints made from people who felt they were not • informed about the Downtown Revitalization Project. Staff requests the HRA's feedback regarding how future communication pieces are distributed. • DRAFIT • ,,..( , Dowieowlemt- City of Elk News le er,0144„„......., RiverOCTOBER 2002- ' As a t tad Retail,Cosrunerrial lk River Role and Residential Area. Q. What is happening with the revitalization and analysis of market feasibility,financial feasibility,as well as communi- ties redevelopment of Elk River's downtown? ty input. It is possible that as a result of this review,the exact proper A. The Elk River Housing and Redevelopment Authority(HRA)and City to be acquired and the project area may change somewhat.An Council will enter a preliminary development agreement with open house will be held later this year for public input into a prelimi MetroPlains Development for the downtown revitalization project.The nary site plan. HRA selected and the City Council ratified the selection of MetroPlains from three finalist developers at its August 26 meeting. Q. Do we know at this point which downtown City officials said MetroPlains demonstrated the most experience on buildings will be preserved, which restored and similar projects and had received a high level of support at the July which redeveloped? open house from residents and the busi A. No,we do not have those specifics yet. Hess community. ThZS newsletter However,consistent with the recently complet ed Historic Contexts Study,the project will Q. What happens next? responds to Some respect the traditional character of downtown. A. The HRA and the developer will enter a pre The project will also preserve the"brick block" liminary development agreement in the com f h2 C2n ques ions which includes the buildings along the west ing months.During the preliminary develop about E k River S side of Jackson Avenue south of Highway 10. • ment agreement phase,the developer works with the City to identify issues that must be L ownt ZfJ7Z �� o Q. What will happen to the existing addressed prior to the final development anC redevelopment, businesses in the downtown agreement phase.These issues include redevelopment area? financial and market feasibility;project sched A. What typically happens in other downtown ule,and a refined site plan.If the City chooses to move forward to a redevelopment efforts is that some businesses choose to stay and final development agreement,that is when the planning and zoning some choose to relocate.The developer will work with downtown approvals,land acquisition and construction will occur. business owners within the project area to identify their interests and how they could be incorporated in any redevelopment plans.For Q. What is the timetable for a downtown project those businesses.that do not stay,arrangements for acquisition and to occur? for relocation assstance will be offered. A. The HRA expects to enter a preliminary development agreement with MetroPlains in October.The preliminary development agreement Q. When will the developer contact downtown phase is expected to last for at least six to nine months with a com businesses and property owners? munity open house later this year on preliminary site plan options. If A. MetroPlains will start to make initial contacts with property owners the developer satisfactorily completes the preliminary development and tenants this fall after a preliminary development agreement has agreement phase,the City and developer would enter a final level been reached with the HRA. Property is not actually acquired until a opment agreement.The earliest construction could begin would be final development agreement has been reached by the City and sometime in 2004. the developer. Q. Does MetroPlains already have a completed Q. If my business or home must relocate in the plan for the project? future, will I receive any financial assistance? A. No,but MetroPlains has a concept for redevelopment which A. Businesses and residents who are required to relocate from the includes the following sites: redevelopment area are provided relocation assistance to help with • East King Avenue and the northeast corner of moving costs,as provided for under the Uniform Relocation King&Main,and, Assistance Act.Properties that are purchased for redevelopment • The southwest corner of Main and County Road 42 must be purchased at fair market value.That value is determined by 0 (Parrish Avenue Bridge). a professional appraisal. In situations where communities are under taking redevelopment,the acquisitions are typically accomplished The next step will involve refining the MetroPlains concept for through voluntary sales. DRAFT CITY OF ELK RIVER DOWNTOWN RIVERFRONT REVITALIZATION CAA NEWSLETTER OCTOBER 2002 Q. As a business owner,when should I begin site costs have been paid,the tax increment goes to the IDto look for a new location? taxing jurisdictions. A. It is always good to be aware of options.However,at this time it is still too early to be certain if the redevelopment will be successfully Q. Why is the City pursuing redevelopment completed and when it will be completed. It is also important to note and revitalization of downtown? that while businesses are free to relocate at any time,if they relocate A. For more than 30 years studies have emphasized the need to better ahead of the redevelopment process they may lose their chance to utilize the riverfront,capitalize on the traditional character,and obtain relocation assistance. ensure safe pedestrian and vehicle movement. Investment in down- town has stagnated and the riverfront is underutilized.The redevel- Q. Does the City have any program to help downtown opment will enhance downtown Elk River's role as a retail,commer- businesses that will not be redeveloped to restore cial and residential area and revitalize the investment made in the their traditional character? downtown business district. A. Yes.The Elk River Economic Development Authority(EDA)has a Micro Loan Fund to help businesses to rehabilitate and restore their Q. Is this redevelopment a "sure thing"? buildings.A loan for up to$50,000 is available at two points below A. No. Redevelopment is a complex process and requires many steps the prime rate with financing for up to three years and amortization and cooperative planning by the developer and the City.The rede- up to 15 years.At least 20 percent of the loan dollars must be used velopment project must meet the goals of the community and pass for improvement of the building's façade and the EDA's loan must the test of both market and financial feasibility.That is why the be matched on a one-to-one ratio.For more information,contact process begins with a preliminary development agreement phase to Economic Development Director Cathy Mehelich. ensure that the important issues can be resolved before moving on to the final development phase. Q. How will this redevelopment project be funded?Will the project impact my property taxes? Q. When will there be an opportunity for more A. The project will be funded primarily through land payments by the public involvement? developer and tax increment finance.Because the project is being A. Once the developer,in cooperation with the City,has prepared pre- funded by other sources,the City does not anticipate that it will liminary site plan options,an open house will be held to get commu- impact property taxes.The tax increment financing assistance,if nity review and feedback of the plan.The exact date of that open used,will be provided based upon the taxes generated by this house is not known,but it will likely be held later this year.More • development and will not result in a tax on existing taxpayers. information will be available in the coming months. Q. What is tax increment financing (TIF)? Q. How can I stay informed? A. TIF is a financing tool created by the Minnesota Legislature in the mid- A. Copies of this and future newsletters will be available at City Hall,the 1970s to help encourage development and redevelopment.Under TIF, Chamber of Commerce,and Elk River Municipal Utilities.In addition, property tax revenue equivalent to what the current property generates information will be provided in the Elk River Star News and on ERN continues to go to all taxing jurisdictions.A portion of the tax revenue Channel 12,and the city website at www.ci.elk-river.mn.us.If you that results from the increased value of the new development,also have questions about the revitalization process,please feel free to called the"tax increment,"goes to pay site costs such as acquisition, contact the Director of Economic Development,Cathy Mehelich demolition,water,sewer,utilities,and street improvements.Once the at(763)441-7420. City of Elk -..-�. River 13065 Orono Parkway, Box 490 Elk River, MN 55330 4110