5.0. HRSR 12-20-1999 ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
MEMORANDUM
TO: Housing and Redevelopment Authority
r FROM: Paul T. Steinman, Director of Economic
Development
DATE: December 17, 1999
SUBJECT: Agenda Memo for December 20, 1999,
HRA Meeting
5. King and Main Site Project Proposals
At the last HRA meeting several proposals were presented for the
development of the King and Main site in downtown Elk River. The
following is a summary of each of these three proposals:
Land
Construction Building Investment Potential Price Taxable
Start Date Size Property? Tenants? Offered? Entity?
Municipal Spring 2002 or 2-story, Partial Municipal Appraised Partial
Utilities 2003 16-20,000 sf Utilities Value
and
KMR Spring 2000 3-story, Yes ? $0 Yes
Partners 21,000 sf
Track of Spring 2000 2-story, Yes Track of the ? Yes
the Wolf 20,000 sf Wolf and?
It should be noted that an additional prospect has been in contact with
staff since the last HRA meeting. John Weicht and Associates will be
present at the.HRA meeting on Monday evening to propose a project for
consideration by the HRA.
Staff has devised a system to rate the three proposals that are currently
on the table in order to help identify the top prospect for the site. This
analysis follows the table above and simply rates each of the items listed
in the columns on a scale from 1 to 10, with 10 being the best. The
analysis is as follows:
•
13065 Orono Parkway• P.O Box 490• Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
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Municipal Spring 2 2-story, 7 Partial Municipal 7 Appraised 8 Partial 3 8 35
Utilities 2002 or 16-20,000 Utilities Value
2005 sf and?
KMR Spring 8 3-story, 7 Yes ? 6 $0 2 Yes 8 7 38
Partners 2000 21,000 sf
Track of Spring 8 2-story, 7 Yes Track of 7 ? 2 Yes 7 5 36
the Wolf 2000 20,000 sf the Wolf
and?
John
Weicht&
Assoc.
This analysis is only intended to provide a basis for discussion at this
HRA meeting. Staff suggests the HRA rate the Weicht and Associates
proposal so that all of the projects can be included in the overall analysis.
The issue before the HRA at this time is which of the proposed
developers should be granted exclusive rights to develop the King and
Main site. Based upon the analysis above, the selected developer would
be KMR Partners. Staff however, does not feel it is appropriate at this
• time to make such a recommendation due to the proposal anticipated to
be brought forward by Weicht and Associates at Monday's meeting.
Staffs recommendation will be to delay action on selection of a developer
until the January 24, 2000 HRA meeting. Prior to that meeting, staff
will work with each of the four developers to refine their proposals and
get a clearer picture of the overall financial benefits of each proposal.
Staff also anticipates receipt of an additional offer/proposal. This
proposal may be presented at the January meeting of the HRA. If this
additional proposal does not come forward, staff believes it will still be in
a better position to make a recommendation to the HRA on one of the
four proposals. Staff does not feel a delay of one month will have a
negative impact on any of the proposed projects.
Staff suggests the following be a list, in order of importance, for the HRA
to consider in further discussions of this project:
1. Price offered for land?
2. Developer's ability to complete project?
3. Taxable entity?
4. Value of completed project?
• 5. Timing of completion of project?