5.1. 5.2. HRSR 06-24-1997 ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
MEMORANDUM
TO: Housing and Redevelopment Authority
_FROM: Paul T. Steinman, Director of Economic
`/ Development
DATE: June 20, 1997
SUBJECT: Agenda Memo for Meeting on Tuesday,
June 24, 1997
5.1. King and Main Project
The purpose of this discussion item is to update the HRA on the
activities of the King and Main project.
At the last HRA meeting, it was discussed that the HRA should
consider pursuing a new RFP (Request for Proposals) to see if that
could generate additional interest in the King and Main site. After
further discussion it was determined that a new RFP would not be
pursued, but rather the following activities would be undertaken:
• Meet with developer Dennis Chuba to continue to pursue
methods to encourage tenant interest in the site.
• Meet with other developers to measure their possible interest
if the HRA were to pursue a future RFP.
Staff met with Bill Beard, the Beard Group,and Roman Roos, a
broker/agent of Re/MAX and an independent developer. Attached to
this memo is a letter of interest from the Beard Group and, although
Mr. Roos indicated his interest also, his letter was unavailable for this
packet. As expected, both developers indicated a certain level of
interest in the site, but were unable, or more likely unwilling, to
discuss a possible purchase price before they were able to measure
tenant interest in the site.
Staff also met with Dennis Chuba to discuss a few of the option which
are available at this time. These options are as follows:
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420• Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
r
G R O U P
3 'go
410
June 2, 1997
Mr. Paul T. Steinman
Director of Economic Development
City of Elk River
PO Box 490
Elk River, MN 55330
RE: Redevelopment Site
King Avenue& Main Street
Elk River, MN
Dear Paul:
Thank you for thinking of The Beard Group, Inc. and exposing us to the above referenced
redevelopment opportunity. After leaving your office Paul and I revisited the site and did a
thorough drive through of the community. Based upon those observations, our conversation and
some additional review we believe that your inclination to find a way to get the first developer
back to the table is the best strategy for your Authority. My experience has always been if the
• Authority is able to get both the project it desires and money from a developer they should do just
that.
We didn't find any thing in our review that would make us question either the concept or scope of
the proposed project. Enclosed for your review are copies of the project we are proposing for a
similar site in Robbinsdale. The Robbinsdale project represents a more intense land use and
addresses Robbinsdale desire to provide active senior housing in their downtown.
Should you decide to move to an RFP please put us on your distribution list. Please don't hesitate
to contact me with any questions or comments.
Sincerely,
The Beard Group, Inc.
--VvITIram H. Beard
President
WHB\
Enclosures:
10 - 11th Avenue South Hopkins, MN 55343 (612) 930-0630 Fax (612) 930-0631
Robbinsdale Retail / Housing Complex
i41st Avenue North and West Broadway, Robbinsdale, Minnesota
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111The Beard Group, Inc.
Development, Project Management, Brokerage, and Property Management
10 Eleventh Avenue South, Hopkins, MN 55343 (612) 930-0630 FAX (612) 930-0631
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oe compietea next muntn, ti. Kannensotrn alas, "rraormat
on the World Wide means Kentucky will be the safety, and sometimes just a per
Web. In St. Paul,the site features
historical crime information for some ;��� first state in the nation to have five or 10 minutes' leeway can m
rs
fully automated intrastate difference between whether a 1
200 neighborhoods.The address is: crime-victim notification. Min- lost or not."
http://www.ploneerplanet.com.You • nesota, however, plansp Clark, who says she "went of
to imple-go directly to the crime page at ment a similar system soon. crusade to bring about aware
p://www.pioneerplanet.com/arc ) Since February 1996, counties when her boyfriend was incarce
crime Index.htrn •
. Kentucky get- is enthusiastic about the implerr
/ / across have beenting hooked up to the state's tion of VINE in Lexington.
Victim Information and Notification Everyday auto- "It's a great gratification beca
mated system, or VINE, which notifies crime victims adds an additional safety device
Q &A about the release of the inmates convicted in their safety of the victim," says Cl.
V cases. board member on the Gover
"This system addresses the needs of the victims of Council for Domestic Violence a:
many types of crimes, but particularly domestic vio- Domestic Abuse Board.
lence," Lexington Mayor Pam Miller says. Of the 83 county jails in Kentuc
What would you like to know
about crime, law enforcement,the The automated system works in two ways to put 67 are connected. By July 15, all
courts and personal safety? Read- the public a phone call away from information on connected to the system that air
ers with general questions about inmates in Kentucky's 17 state prisons and 83 county state prisons.
public safety issues can call our hot jails. It does not include the federal prison system. Funding for this program corn(
line at(612) 228-5466. Please First, by dialing a toll-free number, a person is which received a federal grant ti
leave a short message with your asked for the prisoner number or name of a prison- Justice Cabinet, Kannensohn says.
question. You can leave your name er. A computer then relays where the prisoner is The VINE system was original]
and area of residence if you wish. incarcerated, the telephone number and address of in response to the murder of
We cannot answer every question, that jail or prison, the date of the next parole hear- woman by her ex-boyfriend, whc
but we will publish responses to ing and when the sentence expires. on bond after being charged wig
selected questions in the coming As a second benefit, anyone may confidentially . point. VINE is now in place in r
weeks. Other questions may be register into the system by telephone at no cost. ties in more than 15 states.
answered in the course of upcom- 10 minutes of an inmate's transfer or release, According to Carol Dorris, a
ing stories.
CAll I L L est price tag: about $375,000.
Businesses alog and near Cahill EAGLES/Return to
are being assessed about $200,000.
The city is kicking in $100,000
•CONTINUED FROM 1D from a fund supported by landfill ter keeps three bald ea€
•CONTINUED FROM 1D
eets. The street was off and refinery fees. And about Still, it's a thrill, Tayl
raffic as reef was
of closed off $50,000 or $60,000 has been They're also impressive. "I've to see them in their flat'
pledged by companies and indi- seen probably 15,000 bald tat. On the lake, the fen
teers working in assigned teams p y laid back, but she has tc
planted about 4,000 shrubs and eagles," Galli said. "Every one She's made her nest a s
small trees. Professional contrac- Despite the cost the I've seen is just as spectacular
tors will laterplant larger trees as the ones I've seen before." throw from lake homes.
g "main street" pro- Last week's sighting was no drop their lines at her fi
and build the flag standards, less. The female stood regal and
markers, monuments and other tappears to beThe birds wor
amenities that will complete the aloof on the branch of a cotton-Cahill "main street" signature. wood tree 100 feet above the
The faceliftshas already lured well accepted by res- lake. Like a Marine, she stood back if gawke
te-
some new attractions to Cahill, idents and mer- cappedcud head turned herd straight then side,
including a grocery store and post sdon't mind the
office that will locate in Villagewings pulled close, absolutely
Square at 65th Street by the end chants. still: the live symbol of the manners.
nation.
of the summer, said Ron Marmo, viduals. The donated labor by Sat- "It looks better there than on Kayaks glide by. Sailbor
chairman of the Main Street urday's volunteers is counted as . a quarter, doesn't it?" asked past. A boat motor ignit
Improvement Committee that about $15,000 to $25,000 in Frank Taylor, who had piloted truck rumbles.
coordinated Saturday's work. "sweat equity." his 21-foot sailboat from his But she's cool. She ya'
"A number of businesses that Despite the cost, the "main home across the lake to moor a one foot, then settles ba(
were looking to locate along street" project appears to be well few hundred yards from the immobility, almost cam(
Cahill were impressed by the accepted by residents and mer- female's perch. by leaves. Her offspring
plans," Marmo said. "Part of chants. Taylor sits in his boat for bly 7 or 8 weeks old, lie
their decision (to look there) was "When we had the assessment hours at a time watching the a nest several hundred 3
simply because we were doing hearing for the businesses that avian family. "There's nothing away.
something to revitalize the area." will pay for half of it, there scientific about it. It's just a The male, says Taylor
Decking out the entire two- wasn't a single negative com- treat, " he said with a smile. sight to behold. "When L
mile stretch with trees, bushes, ment," recalled Jody Hencier, But that's the kind of comment swooping in it's like a B
flags and markers will probably president of the South St. Paul one would expect from the ani- ing in. It's an unbelievat
cost about $2 million. But this and Inver Grove Heights Cham- mal curator of the University of He's such a master of tt
(ring phase has a more mod- ber of Commerce. Minnesota's Raptor Center. The One minute he's over ye
center rehabilitates injured birds next he's 2,000 feet aboN
of prey and sends them back lazily flying."
‘ { y,'®` - "' n, .f a ‘, i ,, a into the wild, if possible. Those That's no small feat, c
. fee .e n n L s e s s o n s who wouldn't survive are used in ing the bird's size. The r
PLAY TENNIS AMERICA BLITZ educational programs. The cen- about 30 inches tall and
ADULTS, FAMILIES, YOUTHS - — -- —
" ; = Introduce your family to tennis today! rFI8JT)1 n ess is 1
INFORMATION _.____________JIRIE Ill .
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3• TIttjf sbRY
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Washin. gton
County HRA
sues over profit fmancing ..
• County says advice But a judgment in Washington
by law firm fau County District court two years
ago said the authority was obligat-
ed to pledge assets, based on those
JIM BROEDE STAFF WRITER legal documents prepared by
Holmes and Graven. An appeals
An apartment complex built court upheld that decision.
eight yearsago by the Washington The complaint also alleges that
- County Housing and Redevelop- Homes and Graven drafted the
rancing document for Woodland
went Authority is in deep financial P
• trouble. Park using a document prepared
And HRA officials are putting in Texas for:aproject in Tennes-
the blame on lawyers •
who they ed's aIle
claim gave advice that constitutes Also, itg that the docu-
pro ce. ment contained "negligent Ian-
' A Washington County District
• Court jury. will..decide whether The HRA is seeking
that's true at a trial starting Mon- mare than
day..
The HRA is seeking more than minion in damages
• $5 million in damages fromthe in a trial scheduled
law firm Holmes and Graven. •
-- : The 180-unit Woodland Park to start Monday.
. Apartments was built in Cottage guage, ted
Grove in 1989.But HRA executive expec to ultimately cost
• director Jim Heltzer wishes the 1,,,...
proauthority more than $5 mil-
the start.
t had been scrapped from Woodland Park was built for
the start. d:
In a 16-page complaint, the about ;7.5 million.
HRA contends that to prs+te!�! au- But by the time the doors
thormonies, it had 'a long- , by ainterest rate of snag caused
standing policy ode that should
pushed projectpercent
have been well-known to Holmes P debt to;12 mil-
and Graven — that obligations •
hon:Now it's $14 million because
such as bonds for Woodland Park the authority hasn't been able to
were required to be payable solely afford to pay all the interest, let
out of project income.. . alone the principal.
:,t • Ibstead,it's alleged that Holmes Stephen Rathke, an attorney de-
and Graven wrongfully set up the fending Holmes and Graven in the
- obligation payable out of any and malpractice suit, said his clients
all authority assets and revenues, aren't to blame for what I.
including the general fund, monies �, •
from other projects and a special Holmes and Graven didn't
• tax levy.• walk into the HRA and say, `Build
the project,'"he said. "They never
• "The HRA in good faith believed advised them (BRA officials)
• its bond .counsel at the time," what to do, either in regard to the
Heltzer said. "The BRA directors decision to build or how to provide
had a document in front of them permanent financing or to issue
which the bond counsel said didn't bonds. They just tried, to effectu-
Qbligate the HRA to pledge all of ate (bring about) the !IRA's wish-
its assets payable for Woodland es. That's what lawyers are sup-
• . Park."
posed to do."