06-20-1996 HR MIN • SPECIAL MEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
THURSDAY, JUNE 20, 1996
Members Present: Chair Schuldt, Commissioners Kropuenske and Wilson
Members Absent: Commissioners Farber and Hinkle
Staff Present: Lori Johnson, Acting Executive Director
Others Present: Mark Kleckner, Real Estate Agent
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Housing
and Redevelopment Authority was called to order at 5:07 p.m. by Chair Schuldt.
2. Kina and Main Property Update
Lori Johnson updated the HRA on the recent developments at the King and
Main site related to the HRA's acquisition of those properties. Revised numbers
had been rbceived from Leisch and Associates regarding the environmental
issues which needed to be addressed. The sellers had agreed to pay for one
half of the estimated $5,800 asbestos removal cost with the HRA being
responsible for anything over and above$2,900. Escrows for asbestos removal
would be handled at the closing along with the other environmental escrows
which were previously discussed and agreed to by the seller. The HRA
Commissioners present agreed that it was appropriate for the HRA to pay for the
remaining balance of the asbestos removal.
The second issue of concern related to the relocation expenses renters of the
properly at 812 Main Street. Lori indicated that state law requires that the
renters be given notification of their relocation expense eligibility and that the
HRA may be liable for an amount up to$5,250 based on a formula as outlined in
the state statutes. After discussion regarding this issue, Commissioner Kropuenske
asked Mark Kleckner whether he felt the sellers would be willing to escrow$2,500
for relocation expenses. Mark Kleckner did not. Also discussed was the issue of
having the renters sign a waiver indicating that they would not request
reimbursement.
COMMISSIONER KROPUENSKE MOVED TO PROCEED WITH THE PURCHASE OF THE
KING AND MAIN PROPERTIES WITH THE ESCROW AMOUNTS AS LISTED IN THE STAFF
REPORT; ESCROW FUNDS FROM THE SELLERS TO PAY FOR ONE HALF OF THE
ASBESTOS REMOVAL ESTIMATED AT$5,800 WITH THE SELLERS SHARE NOT TO
EXCEED $2,900; AND EITHER A WAIVER OF RELOCATION REIMBURSEMENT FROM THE
TENANTS OR AN ESCROW FROM THE SELLERS FOR A MINIMUM OF $2,500 FOR
REIMBURSEMENT TO THE HRA FOR ANY RELOCATION EXPENSES PAID TO THE
RENTER. COMMISSIONER WILSON SECONDED THE MOTION. THE MOTION CARRIED
3-0.
Lori Johnson indicated that closing is scheduled for Friday, June 21, and that
both she and Gene Schuldt will both be out of town the following week. If
closing is delayed, it would be necessary to give authorization to another HRA
member to execute the closing documents.
COMMISSIONER WILSON MOVED TO AUTHORIZE VICE CHAIR KROPUENSKE TO SIGN
AS THE ACTING EXECUTIVE DIRECTOR OF THE HRA IF NEEDED IN THE CLOSING
TRANSACTION FOR THE KING AND MAIN PROPERTIES. CHAIR SCHULDT SECONDED
THE MOTION. THE MOTION CARRIED 3-0.
4. Adjournment
There being no further business, COMMISSIONER KROPUENSKE MOVED TO
ADJOURN THE MEETING. COMMISSIONER WILSON SECONDED THE MOTION. THE
MOTION CARRIED 3-0.
The meeting of the Elk River Housing and Redevelopment Authority was
adjourned at 5:25 p.m.
Respectfully submitted,
74gDAIQJt
• Lori Johnson
Acting Executive Director
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