5.1. 5.2. 6.1. HRSR 05-27-1997 ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
MEMORANDUM
TO: Housing and Redevelopment Authority
sir7FROM: Paul T. Steinman, Director of Economic
Development
DATE: May 21, 1997
SUBJECT: Agenda Memo for Meeting on Tuesday,
May 27, 1997
5.1. Discuss Progress on King and Main Project, Request for
Proposals, and King/Main Loan Repayment
The King and Main demolition project has been completed as of
Friday, May 16, 1997. Staff is currently in the process of working with
the street department to provide final grading and seeding of the site.
• The demolition costs came in at thep recise bid amount of$21,639.
Veit Companies, the demolition contractor, proposed under separate
contract, to complete the backfilling and compaction of the site upon
completing of demolition. Staff confirmed that there would be
significant savings in having Veit complete this part of the contract.
The reason for the cost savings is due to the fact that after dumping
the demolition materials, Veit's trucks would have been returning to
the site empty. Veit's proposal was to have their trucks haul the sand
needed for backfill on the return trip from depositing the demolition
materials. This saved us approximately 40 to 50 percent of the cost of
having these materials trucked separately. As was indicated in an
earlier memo, staff anticipated this final work to cost approximately
$4,000. The final total on the backfilling/compaction and testing is as
follows:
• $3,380.40 -backfill and compaction
• $ 300.00 - (estimate) compaction testing.
Staff feels it is appropriate at this time to also discuss the HRA's
response to possibly letting another Request For Proposals for the King
• and Main site. Economic development staff and planning staff have
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
Agenda Memo
Page Two
May 21, 1997
• discussed that, with the completion of the demolition project and other
improvements/activities that have taken place in this area since the
last RFP, there appears to be an advantage to going through this
process once again. If the HRA so desires, staff would prepare such
RFP for approval at the June HRA meeting. For your information
staff has attached a copy of the last RFP on this site.
Additionally, if the HRA pursues another RFP, it would be reasonable
to assume the $225,000 offer for the purchase of the property by,
developer Denny Chuba would not be received, at least within the time
frame of July, 1997. If the HRA chooses to pursue the RFP, it will
likely need to be flexible on the "asking price" for the sale of the
property. Therefore, staff has also attached a revised King and Main
loan repayment schedule considering the fact that the $225,000 would
not be received. This revised schedule is for review and discussion by
the HRA.
5.2. Discuss Future Activities Regarding Implementation of
Strategic Plan
The City Council formally adopted the Strategic Plan on May 19, 1997.
al With formal adoption comes implementation of various action steps
which fall under the leadership and direction of the HRA. It is
appropriate at this time to discuss the timing of undertaking these
action items in cooperation with the Planning Commission. These
action items include undertaking a Focus Study and Market Study in
addition to identifying and prioritizing the redevelopment sites in the
central business district. It would be appropriate to take initial steps
to begin undertaking these action items at the HRA meeting in June.
6.1. Discussion on Changing June 23rd Meeting Date
Due to the Elk River Area Chamber of Commerce golf outing scheduled
for Monday,June 23, 1997, staff suggests that the HRA reschedule its
meeting on that day for Tuesday, June 24, 1997, at 5 p.m., at City
Hall.
• \\elkriver\sys\shrdoc\eda\hra\agdamemo.doc
• PROPOSED INTERNAL LOAN REPAYMENT SCHEDULE
ASSUMING DEVELOPER LATE DEVELOPER PAYMENT
PRINCIPAL
PAYMENT DATE PAYMENT PRINCIPAL INTEREST BALANCE
July 1, 1996 - 401,482.48
December 1, 1996 75,000.00 75,000.00 - 326,482.48
July 1,1997 - - - 326,482.48
December 1, 1997 37,000.00 17,411.05 19,588.95 309,071.43
September 1, 1998 18,500.00 4,591.79 13,908.21 304,479.64
December 1, 1998 18,500.00 13,932.81 4,567.19 290,546.84
September 1, 1999 18,500.00 5,425.39 13,074.61 285,121.45
December 1, 1999 18,500.00 14,223.18 4,276.82 270,898.27
December 1, 2000 68,500.00 64,436.53 4,063.47 206,461.74
December 1, 2001 63,948.65 60,851.72 3,096.93 145,610.02
December 1, 2002 50,000.00 47,815.85 2,184.15 97,794.17
December 1, 2003 50,000.00 48,533.09 1,466.91 49,261.08
December 1, 2004 50,000.00 49,261.08 738.92 - 0.00
411
This assumes repayment of Developer share starts in 2000. This could be repaid by either the
Developer or the HRA. It must be repaid as these funds are programmed for debt payment
on the Liquor Revenue Bond.
•
Sherburne Kuhn Clinic
317 812 307
King Main King TOTAL
Purchase Price $ 105,000.00 130,000.00 175,000.00 410,000.00
Settlement Charges 19.50 1,118.25 19.50 1,157.25
Prorated taxes 79.24 79.16 166.83 325.23
Subtotal Property Cost 105,098.74 131,197.41 175,186.33 411,482.48
2nd Half 1996 Taxes 1,446.10 1,444.67 3,044.55 5,935.32
Legal 1,283.80
Environmental Audit I 5,735.89
Printing & Publishing 30.65
Survey 1,199.60
Demolition 21,639.00
Asbestos Abatement 16,315.00
Environmental Audit II 1,371.65
Backfill/compaction/testing 3,680.40
TOTAL EXPENDITURES AS OF MAY 1997 468,673.79
PROPOSED INTERNAL LOAN REPAYMENT SCHEDULE
• (With developer repayment)
PRINCIPAL
PAYMENT DATE PAYMENT PRINCIPAL INTEREST BALANCE
July 1, 1996 - 401,482.48
December 1, 1996 75,000.00 75,000.00 - 326,482.48
July 1,1997 225,000.00 225,000.00 16,324.12 117,806.60
December 1, 1997 37,000.00 34,054.83 2,945.17 83,751.77
September 1, 1998 18,500.00 14,731.17 3,768.83 69,020.60
December 1, 1998 18,500.00 17,464.69 1,035.31 51,555.91
September 1, 1999 18,500.00 16,179.98 2,320.02 35,375.92
December 1, 1999 18,500.00 17,969.36 530.64 17,406.56
March 1, 2000 18,189.86 17,406.56 783.30 - 0.00
Interest on Loan starts on September 1, 1996. This was the anticipated first payment
date; when first payment was delayed to December, interest start date was not changed.
•
5/23/97 Hraking
•
DRAFT
KING/MAIN RFP
• August, 1994
Elk River Housing and Redevelopment Authority
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330 (612) 441-7420
•
• REQUEST FOR PROPOSALS
MAIN STREET REDEVELOPMENT OPPORTUNITY
ELK RIVER, MINNESOTA
The Elk River Housing and Redevelopment Authority (HRA) is requesting
proposals for commercial, office, or retail development on a 32,400 square foot
site in the Elk River Central Business District. This site is located in the
northwest quadrant of Main Street and King Avenue Northwest.
Specific requirements for the submission of proposals are contained in a
document entitled King/Main Redevelopment RFP which can be obtained by
contacting the Elk River HRA at the address found below.
The deadline for submitting proposals is Wednesday, September 14, 1994, at
4:00 p.m. For additional information about the Request for Proposals, please
contact:
William Rubin, Executive Director
Elk River HRA
13065 Orono Parkway
P.O. Box 490
• Elk River, MN 55330
Telephone: (612) 441-7420
Authorized this 11th day of August, 1994.
REQUEST FOR PROPOSALS
II/
I. BACKGROUND
A rare opportunity exists for a mid-sized redevelopment project as
three contiguous properties are currently listed for sale in the Elk
River Central Business District. This site is located in the northwest
quadrant of Main Street and King Avenue NW. The combined size of
the site is 32,400 square feet (180 feet along Main Street by 180 feet
along King Avenue). Three existing structures are currently located on
this site and were formerly used as a medical clinic, an abstract and
title company, and a single family home which had been converted to
accommodate two separate businesses.
Because of the extraordinary costs associated with site assembly,
demolition/rehabilitation of existing structures, and site preparation,
etc., the Elk River Housing and Redevelopment Authority (HRA) may
provide grant funds as reimbursement for these expenses. The amount
of the grant funds will be determined on the basis of the project
• submitted for consideration.
II. RFP SUBMISSION REQUIREMENTS
At a minimum, development proposals should contain the following
items:
• NARRATIVE - The narrative should describe the proposed
land use, timetable, square footage, and phasing (if
applicable). A general description of the building design (e.g.
two story, brick) should be included. Elevation drawings are
not required at this time. Additionally, the narrative should
describe what, if any, public assistance would be required.
• SITE PLAN - A site plan indicating the proposed location of
the building and related off-street parking.
• SCHEDULE FOR DEVELOPMENT - This schedule should
indicate timing for submission of more detailed development
• plans, commencement of project construction, and
completion.
• • DESCRIPTION OF DEVELOPER QUALIFICATIONS -
Developers/owners should provide a background on
experience with previous projects - including supporting
material/documentation on similar projects. Any plans for
joint ventures or partners, including names of partners,
should accompany the proposal.
• OTHER - Any other information that is relevant to the
proposed project, schedule, or developer should accompany
the RFP.
III. SCHEDULE FOR REVIEW
The following schedule is proposed for the review of the RFP's and
subsequent actions:
August 15, 1994, Request for Proposal packets sent to interested
developers.
• August 17, 1994 - Notice of Request for.Proposals published in the Elk
River Star News.
September 14, 1994 - Developer proposals are due.
September 15-16, 1994 - Proposals are reviewed and are included in
the HRA agenda packet.
September 20, 1994 - Developer presentations are made to the Elk
River HRA.
September 27, 1994 - The HRA selects a developer.
October 4, 1994 - Formal redevelopment grant request is reviewed by
the HRA.
•
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ASSESSED MARKET VALUES :
PARCEL 1 - • PID #75-405-0160
Land $81 ,000
•
Building $79 , 900
J�� ,) itt PARCEL 2 - PID #75-405-0150
irilli"Illilirl6V1‘' Ar- •
Land $50 , 400
411
Building $55 ,000
PARCEL 3 - PID #75-405-0140
Land $92 , 000
. Building $42 , 800