5.1. 5.2. 5.3. 6.0. HRSR 01-26-1998 ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
• MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Paul T. Steinman, Director of Economic
Development
DATE: January 22, 1998
SUBJECT Agenda Memo for January 26, 1998,
HRA Meeting
5. Annual Meeting Items
5.1. Election of Officers
• Chair - 1997 - Gene Schuldt
• Vice Chair - 1997 - Duane Kropuenske
• Secretary 1997- Larry Farber
II Elections for the offices of Chair, Vice Chair, and Secretary are
required at this annual meeting of the HRA.
5.2. Designate Official Newspaper
The HRA's official newspaper has been the Elk River Star News.
The City Council and Economic Development Authority have
once again redesignated the Elk River Star News as their official
newspaper for the 1998 calendar year.
5.3. Designate Official Depositories
It is appropriate for the HRA to designate depositories identical
to those designated by the City Council for the city and the
Economic Development Authority. For 1998, the City Council
and EDA have designated the following banks/institutions as
their official depositories:
• The Bank of Elk River
• First National Bank of Elk River
•
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
• 4M Fund
• Norwest Bank
• • FirstBanks, N.A.
It is recommended that the HRA designate the above-referenced
banks/institutions as its official depositories for funds in 1998.
6. Discuss Issues/Objectives for 1998
• King and Main Property-The King and Main site has been the
focus of attention for the HRA over the past 18 months. All
activities and expenses related to this site were completed inmid
summer of 1997. Since that time staff and the HRA have worked
with Dennis Chuba to attract possible tenants to the site. To date
there has not been a great deal of tenant interest in locating at the
King and Main site. Staff has had several conversations however,
with possible professional/medical tenants who have indicated they,
may have a future interest. Toward the end of 1997, it appeared as
though the HRA might receive an offer to sell the property for a
professional business which would construct an 8,000 to 10,000
square foot building. This obviously did not occur, but may still be a
possibility in 1998.
• There are several options which the HRA may wish to direct staff to
pursue regarding the sale and development of this site in 1998.
These options include:
•` Create and distribute a brochure describing the location and
benefits of the King and Main property. Brochure could
include a conceptual site plan showing a building footprint
and on-site parking. Brochure would be distributed to local
and area real estate offices. Brochure could indicate that
brokerage fees will be paid for agents bringing a project to
the HRA.
• Construct a "for sale" sign on the existing sign on the site.
• Continue to pursue local businesses which have indicated a
potential interest in the site.
• Downtown Master Plan The issue of creating a Downtown
Master Plan has been discussed for quite some time by city staff and
City Council. The issue also appeared as an initiative in the
Economic Development Strategic Plan which was completed in
1997. Economic Development and Planning staff began work on a
Downtown Master Plan by coordinating a meeting between the
Planning Commission, Housing and Redevelopment Authority, and
Rivers Edge Downtown Development Corporation. This process
• stalled late in 1997. It is an issue which Planning and Economic
Development staff continue to discuss as an objective to accomplish
in 1998. It is hoped that with the new planning intern coming on
board within the next couple months, we will be able to use his
services to aid in moving a Downtown Master Plan forward in 1998.
\\elkriver\sys\shrdoc\eda\hra\agdamemo.do c
FEB-23-98 05 :02 PM P. O1
February 23, 1998
TO: Dick Hinkle
EUA. City of Elk River
FROM: Gary L. Santwire
Dick:
It was good talking to you this morning. Here are a few of my thoughts
regarding the old clinic site in downtown Elk River, which we discussed.
1 ) The size of the site is approximately 32,000 square feet.
2) The square lix)tage cit a new building will probably be limited to
RR square foot.
70oO - (01660
3) Assuming .l 0,000 square feet, this building should have a 5 to 1
parking ratio (at least 30 on site and 20 nearby).
4) The value of the site will depend on the net rent (approx.
S8.00!sq. ft. per year) from the space after debt service for the
cost of construction.
Example: A 10.000 sq. ft. building (4.) $100 per foot
$1,000.000 cost S110,000 year debt. service.
Land value -0-
Example: A 10,000 sq. ft. building $6O.00/sq. ft. = $600,000
cost - S66.0OO per year debt service. Laud value possibly
$200,000.
The above figures a.re based on a $80,000 per year net rental
111 income.
5) You restion of the city offering a brokerage fee. will be
extremely advantageous in putting a project together on this
site.