5.0. 6.0. 7.0. HRSR 01-24-2000 ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Paul T. Steinman,Director of Economic
Development
DATE: January 19, 2000
SUBJECT: Agenda Memo for January 24, 2000 HRA Meeting
5. Annual Meeting Items
Election of Officers
The current officers of the HRA are as follows:
• Chair—Duane Kropuenske
•` Vice Chair- Richard Hinkle
• Secretary-Larry Toth
Designate Official Newspaper
It is appropriate and recommended that the HRA designate the Elk River
Star News as its official newspaper for the year 2000, following such
designation by the EDA and City Council.
Designate Official Depositories
Staff recommends designating the following official depositories identical
to those designated by the EDA and City Council:
• The Bank of Elk River
• First National Bank of Elk River
• 4M Fund
•_ Norwest Bank
• USBanks
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
• 6. Developer Selection—King and Main Site
It appears at this time there are only two potential developers remaining
for the King and Main site in downtown Elk River. As a result of the
most recent worksession held on this issue, two of the four developers
more or less indicated their desire to see the HRA work with First
National Bank on a project on this site. These two developers were KMR
Partners and Municipal Utilities. This leaves two developers proposing
projects on this site — First National Bank and John Weicht and
Associates/Track of the Wolf. The following significant points of
comparison are made by staff with regard to the two remaining
proposals:
■ First National to pay $175,000 cash at closing
■ Weicht proposes potential seller-financed project with possible
$100,000 offered for the land
■ First National to commit to completing a project by end of 2001
■ Weicht to complete project by the end of 2000
■ First National to occupy a portion of the space itself and lease
remainder to other office users
■ Weicht to lease part of the space himself, part to other office users,
and part to Track of the Wolf, Inc.
• ■ First National is able to finance the project with or without
additional tenant interest
■ Track of the Wolf may not be able to commit to the King and Main
project with Weicht until their building is sold in Brooklyn Park—
possibly a couple of months.
Given this information, staffs recommendation is to proceed with
selecting First National Bank as the developer for the King and Main
site. Staff also recommends the following be included in a Letter of
Intent to be drafted by the City of Elk River HRA and executed by First
National Bank:
■ Commitment to start construction by April 2001 and complete a
project prior to December 31, 2001
■ Commitment to complete a project of substantial size as
determined through negotiation with city staff and information
received from any parking analysis completed for the project area.
■ Commitment to close on the land purchase on or before April 14,
2000.
Staff recommends a public hearing be held by the HRA at its regular
• meeting in February or March in anticipation of an April closing date.
• Over the next several months staff will be involved with the developer to
complete further parking analysis and to negotiate with the developer to
determine the most appropriate size for a project on this site.
7. Accept Resignation of Executive Director—Appoint New Executive
Director
Executive Director Paul Steinman will be parting employment with the
City of Elk River on February 11, 2000. Given this, it is appropriate to
accept his resignation as Executive Director of the Housing and
Redevelopment Authority and appoint City Administrator Pat Klaers as
the Executive Director.
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