4.0. 5.0. 6.0. HRSR 09-28-1998 ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
MEMORANDUM
TO: Housing and Redevelopment Authority
pi, FROM: Paul T. Steinman, Director of Economic
Development
DATE: September 23, 1998
SUBJECT: Agenda Memo for September 28, 1998,
HRA Meeting
4. Midwest Building Components Project -King and Main Site
Staff will provide an update to the HRA on the activities completed by
Midwest Building Components regarding progress on development of
the King and Main site.
• Terry Veech, president of Midwest Building Components,has indicated
they are nearing completion of this initial phase of their project and
are continuing to measure tenant interest in such project. An
appraisal of the land has been completed by MBC. Negotiation of a
land price and possible execution of a purchase agreement will be
dependent upon whether MBC determines that it is appropriate to
proceed to Phase II of this project.
5. Discussion of Issues from September 24 Initial Central Business
District Meeting
Staff will be prepared to discuss with the HRA the various issues
pertaining to the initial Central Business District Visioning Process.
Staff will also discuss planning for the next meeting of this process and
various work activities involved in the process between now and this
next meeting.
6. Consider 1999 HRA Budget
The major difference between the 1998 and 1999 HRA budgets are the
inclusion of a number of new line items. Staff is proposing that the
•
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
1999 HRA budget include a sharing of services with the EDA. These
• services include:
• Office supplies
• Telephone
• Conferences and schools
• Dues and subscriptions
Staff is proposing the EDA pay 75 percent of the total annual cost of
these services with the HRA paying 25 percent.
The other major change is the addition of personal services. As shown
on the attached budget sheet, the HRA would be responsible for 20
percent of the current salary/benefits and part time pay associated
with the Economic Development office, and 30 percent of the
salary/benefits for a proposed new employee to assist the Economic
Development Director in 1999.
Also as indicated in the proposed budget, a payment of$37,000 is
proposed to be made toward payment of the loan for the King and
Main purchase/demolition.
Recommendation
Staff recommends approval of the 1999 Housing and Redevelopment
budget as proposed.
•
HOUSING & REDEVELOPMENT AUTHORITY
S
EXPENDITURE ANALYSIS
1996 1997 1998 1999
ACTUAL ACTUAL ADOPTED PROPOSED
PERSONAL SERVICES $0 $0 $4,350 $30,900
SUPPLIES 0 0 0 300
OTHER SERVICES & CHARGES 37,069 8,689 71,650 17,550
CAPITAL OUTLAY 410,735 62,906 0 0
TRANSFERS OUT 500 500 1,000 38,000
TOTAL $448,304 $72,095 $77,000 $86,750
PERSONAL SERVICES
Regular Pay $25,150
Overtime Pay 500
Part Time Pay 250
Employee Pensions 2,400
Employee Insurance 2,600 $30,900
SUPPLIES
• Office Supplies 300 300
OTHER SERVICES & CHARGES
Legal 2,000
Other Professional Services 10,000
Telephone 350
Postage 500
Conferences & Schools 1,000
Advertising/Marketing 2,000
Publishing 400
Insurance 150
Dues & Subscriptions 150
Miscellaneous - King/Main 1,000 17,550
TRANSFERS OUT
General Fund 1,000
Repay King & Main Loan 37,000 38,000
$86,750
i
1999 TAX LEVY
PRELIMINARY INFORMATION
• Estimated revenue for HRA & EDA
based on MV of 713,577,813 from
Ramona Sept. 4, 1998
EDA
129,371.66 _
HRA
93,478.69
•
9/4/98:4:17 PM
Taxlevy
•
PROPOSED INTERNAL LOAN REPAYMENT SCHEDULE
ASSUMING DEVELOPER LATE DEVELOPER PAYMENT
PRINCIPAL
PAYMENT DATE PAYMENT PRINCIPAL INTEREST BALANCE
July 1, 1996401,482.48
December 1, 1996 ,000.00 75,000.00 - 326,482.48
July 1,1997 / - - - 326,482.48
December 1, 1997 l/ 37,000.00 17,411.05 19,588.95 309,071.43
September 1, 1998 x/18,500.00 4,591.79 13,908.21 394,47944
December 1, 1998 1,---:18,500.00 13,932.81 4,567.19 290,546.84 5
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
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