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4.0. 5.0. HRSR 08-03-1998 ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY MEMORANDUM TO: Housing and Redevelopment Authority ryrc FROM: Paul T. Steinman, Director of Economic Development DATE: July 29, 1998 SUBJECT: Agenda Memo for August 3, 1998, Special HRA Worksession Consider Letter of Intent with Midwest Building Components Terry Veech, president of Midwest Building Components, will be available at this HRA worksession to update the HRA on activities regarding the proposed project on the King and Main site. • A draft Letter of Intent is attached to this memo and has been agreed to by Midwest Building Components. An issue which has arisen since the last HRA meeting from a couple of people is whether the HRA should consider a shorter term for this Letter of Intent. As indicated in the Letter of Intent, the term is proposed to be from June 30, 1998, to December 30, 1998. The comments which staff has heard have been to possibly decrease the term of the Letter of Intent to a total of four months. That would mean the Letter of Intent would be in effect until November 1, 1998. The reason these comments have been received regarding a possible shorter term for this Letter of Intent is that there seems to be other developer interest in the King and Main site at this time. Recommendation Staffs recommendation is that the HRA enter into a Letter of Intent with Midwest Building Components for the term of June 30, 1998, to November 1, 1998. If, at the end of the four month term, the HRA is comfortable with the proposed project with MBC the Letter of Intent can be extended or a • Preliminary Development Agreement,which is the next step in the process, could be executed at that time. The HRA has the option to 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 also hear proposals from other developers at the end of the four month term. The HRA can then determine which of the developers it would like to proceed with to complete a project at King and Main. Discussion with Theresa Washburn. Washburn and Associates Regarding the Downtown Plan Theresa Washburn, Washburn and Associates, will be available at the HRA worksession to discuss her proposed scope of services for the completion of a Downtown Plan. As you recall, at the last HRA meeting the consensus was to hire Washburn and Associates to lead the first phase of the Downtown Plan. The HRA wished to continue its discussion with Washburn and Associates prior to starting the Downtown Plan in order to get more comfortable with her proposed process. Washburn and Associates' proposal for scope of services is attached to this memo. The overall direction of this issue will be to have Theresa Washburn discuss in more detail, each of the five activities outlined in her proposal for scope of services. Other issues that need to be addressed include: ID • Washburn and Associates expectations of city staff and HRA participation in this process • How the scope of services can be modified to address certain situations which may arise throughout the process, (i.e. low attendance at meetings, low overall interest in the process, or lack of support of the process by vital groups/organizations)? Staff intends to invite these additional individuals representing various organizations proposed to be involved in the Downtown Plan process: • Tom Mesich, Planning Commission Chair • Renee Sande, Elk River Chamber • Char Barder, President of Rivers Edge • City Planning Staff Scott Harlicker& Steve Wensman •. Hank Duitsman,Mayor/EDA President It is important that the HRA and other representatives come to the meeting prepared to ask questions relating to this Downtown Plan process. This will likely be the last time we are able to meet with Washburn and Associates prior to actually starting the project. The primary goals of this HRA meeting with regard to this issue are as follows: • HRA and other groups to become comfortable with Washburn and Associates'process for completing the Downtown Plan • Discuss the specific activities which will be undertaken in the Washburn proposal to complete the Downtown Plan • Agree upon a modified timetable to start and complete the Downtown Plan • DRAFT July 29, 1998 Terry Veech Midwest Building Components, Inc. 7210 163rd Avenue NW Ramsey, Minnesota 55303 SUBJECT: LETTER OF INTENT Dear Mr. Veech: The purpose of this letter is to signify the Elk River Housing and Redevelopment Authority's (HRA) commitment to work exclusively with Midwest Building Components, Inc. (MBC) to complete exploratory research • into construction of an approximately 21,000 square foot (leasable) building on the corner of King Avenue and Main Street in downtown Elk River. It is the intention of the HRA and MBC that this Letter of Intent document our present understanding and commitments and that if the following conditions can be fulfilled to the satisfaction of the HRA and MBC, that the parties will proceed to use their best efforts to attempt to negotiate a mutually satisfactory development agreement: • MBC demonstrates the market-feasibility of the proposed project • MBC demonstrates that financing for the proposed project is available to MBC • MBC and the HRA are able to reach an agreement on of a purchase price for the property • MBC demonstrates that the construction materials proposed to be used will be of such grade and quality so that the building is aesthetically pleasing and fits with the overall character of the downtown area During the term of this letter of intent, the HRA agrees that it will not negotiate a contract with any other party concerning the redevelopment of the King and Main site. • .11° This agreement shall be effective for the term of June 30, 1998, to December 30, 1998. City of Elk River Housing Midwest Building Components, Inc. And Redevelopment Authority Duane Kropuenske, Chair Terry Veech, President Paul T. Steinman, Executive Director Proposal for Scope of Services Washburn and Associates • Prepared for the City of Elk River June 15, 1997 The intent of this proposal is to provide a brief outline of services, costs and timeline for the pre-design process of Elk River's downtown redevelopment plan. This pre-design process, in which goals and objectives are established by community members, is critical to the successful implementation of any comprehensive downtown design. Furthermore, community education creates informed and prepared volunteers, staff, and council members. This proposal does not seek to address all the issues that may arise in the visioning and planning process. However, four key elements are present. First, the promotional piece, which raises public awareness of downtown revitalization. Second,the visioning workshop, open to interested groups, where participants realize a shared vision of the future of the downtown area. Third,the workplan process, when individuals commit to specific tasks that support the goals and objectives created in the visioning workshop. And finally,the educational component, which provides volunteers and staff real life solutions for implementation, as well as, education of the basic principals of design, promotion, and economic development. The challenge of this process is to create a workable structure with clear responsibilities for interested organizations and groups. The process must address the mission of each group and create a place for them as the plan develops. In doing so, the design stands a better chance of survival and utilization. • The ultimate goal is an economically viable, attractive downtown district that serves the needs of those that use it. Elk River can reach that goal in a truly creative and unique manner by utilizing the strengths, expertise and commitment of its own community members. Interested Organizations City of Elk River Elk River HRA Rivers Edge Chamber of Commerce Arts 2001 Area Schools Local Historical Society 1. Reconnaissance Visit Length: One and a half day visit. 411 Primary Purpose: To gather information and educate the various interested organizations and the general public about the downtown revitalization process. Format: Community walking and driving tour. Meetings with various interested organizations. Community presentation. $ 600.00 plus travel expenses 2. Visioning Workshop Length: Two day workshop with follow-up report. Primary Purpose: To determine a shared vision for downtown redevelopment with specific goals and objectives. Create a structure to implement goals and objectives. Format: 10 hour retreat. Participants would include representatives of various interested organizations, to include, but not limited to, the organizations listed on the previous page. $800.00 plus travel expenses 3. Workplan Workshop Length: One and half day visit with follow-up report Primary Purpose: To create a workplan in which participants commit to specific tasks. The vision, goals, and objectives drive the tasks. Format: Two hour general meeting reuniting Visioning Workshop participants, followed by smaller group planning sessions. Participants in group planning session will be determined by the structure and the organizations or individuals that work on various goals and objectives. • $600.00 plus travel expenses 4. Education and Implementation Workshops Length: Three day visit Primary Purpose: To teach individuals working on tasks how to implement downtown revitalization activities. These may include; private building rehabilitation, economic development strategies, promotional activities and co-ordinating responsibilities. This visit will also prepare participants to guide a design team in creating a workable downtown plan. Format: Six, half day, educational workshops, open to individuals working on specific tasks as well as representatives of various interested organizations. $1,200.00 plus travel expenses 5. Final Consultation One day visit (optional) Primary Purpose: To address any questions regarding implementation of design plan. Format: Meeting with individual groups working on various aspects of the plan. $400.00 plus travel expenses Services include weekly consultation by phone, fax or electronic mail, for issues related to the Elk River downtown revitalization process. • Travel expenses include mileage, accommodations, and meals. Travel allowances compatible with those given to City of Elk River employees. 2 • Proposed Timeline •,' Date Consultant Activity Community Activity July/August 1998 1. Reconnaissance Visit Set date for Visioning Workshop August 1998 2. Visioning Workshop Set date for Workplan Workshop September 1998 3. Workplan Workshop Set date for Education and Implementation Workshop September/October Prepare for Education Workshop Groups work on tasks 1998 October 1998 4. Education and Implementation I Prepare"Request for Services" for Workshop design firm November 1998 Design firm begins work Groups continue work on tasks January -July 1999 Design firm creates plan Groups work with design firm July/August 1999 Plan Complete Celebrate •r August 1999 5. Final Consultation Create second year workplan Services provided by Washburn and Associates are designated in bold print. • 3