01-12-1981 HR MIN SPECIAL MINUTES OF A SPECIAL MEETING OF THE
ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
January 12 , 1981
Members Present - Frank Madsen , Larry Toth and Hank Duitsman
Also Present - Neil Larson and George Dietz
Call to Order - The meeting was called to order by Frank
Madsen at 7 :45 p.m.
Minutes - Larry Toth moved to table reading of the last minutes
until the next meeting . Hank Duitsman seconded the motion .
Motion carried 3-0.
Meetings - There was discussion of designation of place of
meeting. Hank Duitsman moved to meet at the Sherburne County
Administration Offices . Larry Toth seconded the motion .
Motion carried 3-0. Larry Toth moved to meet the second
Monday on quarterly basis (March , June , September and December) .
Hank Duitsman seconded the motion . Motion carried 3-0 . Frank
Madsen discussed the need to set-up a meeting for February.
Hank Duitsman moved to meet on Monday , February 9 . Larry Toth
seconded the motion . Motion carried 3-0.
Neil Larson , Downtown Project - Mr. Larson presented his preliminary
figures on the estimated public and private costs of redeveloping
• Block 2 . He said the project would include new and remodeling of
some existing retail and office space . It would include the
garage , meat market , law offices , and public utility building .
There also would be the possibility of expanding as far as
Fullerton Lumber and some improvements on Jackson Street at a
later date . He said the Total Public Improvements figure
( Exhibit A) was low, and he had discussed this and that there
was enough increment on the second page of his figures that it
could be increased another $100 ,000 . He projected that the present
valuation of the property within the increment will be increased
from $550,000 to $2 . 1 million totally and increase the taxes by
$67 ,900 per year. This means that it can fund a tax increment of
more than the $489. 00 on the first page . Mr . Madsen asked about
the interest rate and if he is looking at a 10 year pay off . He
said this is to get 12 and 13% and can go as long as 25 years .
Larry Toth asked about the rent figure . Mr . Larson said he did
not have those figures , but he figured around $6 per square foot .
He said this could be higher or lower depending on square footage .
A larger store might only get $5 or $4 . 50 whereas a 500 to 600
foot office might be around $7 or $8 . Frank Madsen mentioned
that the meat market would like to stay downtown , and asked if
he was going to start at one end and then create spaces for
business to move into without interruption . Neil Larson said
that was his intention , with two or three business not invited to
participate. There was discussion of providing parking space .
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• Mr. Larson said he would use King Avenue as angle parking with
entrances and exists onto Highway 10 and Main Street . He also
would consider another entrance from Monroe Street . There also
was discussion of the houses on Lowell Street and his attempt to
purchase them for possible parking lot , but that was not now
feasible . Hank Duitsman asked if this would be mainly retail -
professional . Mr. Larson said it would be main floor retail ;
upper floors could be retail if done properly and upper floor
offices . He said he is looking at doing this now and not 2-3
years from now as it was more likely to generate commitments .
Frank Madsen discussed dividing the downtown area into districts
and it was decided to work on a plan at the next meeting . Hank
Duitsman said someone from the downtown businesses and/or anyone
interested should be invited .
George Dietz , Shopping Center - Mr . Dietz was present to discuss
the development of his property. He said it is at a standstill
right now because of the high interest rates . K-Mart and Super
Valu were interested , but are not considering anything until the
economy improves . Mr. Madsen discussed the possibilities of what
the HRA could do for him and also about the connections of Fifth
Street and sewer for that property. Mr. Madsen said it would be
helpful if Mr. Dietz could submit a preliminary plan or drawing
so the City would know where the Shopping Center was to be placed
on the land so it could go ahead with the sewer and Fifth Street
easements .
Adjournment Larry Toth moved to adjourn . Hank Duitsman
seconded the motion . Motion carried 3-0 . Meeting adjourned
8 :55 p.m.
t,..)11"10%4. )4CS 4.1WA•040.44-4--L-".-
Donna Domm, Secretary
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