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7.0. HRSR 04-23-2001 ITEM 7. 1. • Elk River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development%� DATE: April 23, 2001 SUBJECT: ECM Publishers, Inc. Downtown Property Issue At its March 26,2001 meeting, the Elk River HRA directed staff to research the details of two Main Street properties listed for sale. The HRA indicated interest in considering the area for future redevelopment. Attachments * Site Map • * Building Site Map Overview ECM Publishers, Inc. is the owner of two Main Street properties listed for sale. The following listing information is provided by the Edina Realty listing agent: Parcel Listing Price Current Use Price/square foot land area 75-405-0440 $244,900 antique/upholstery shop $35.50 (6,898 s.f.) 75-405-0450 $170,000 vacant $20.06 (8,475 s.f.) Maps indicating the ECM property and building area are attached. It should be noted that the ECM property is separated from the river by a separate parcel. This rear property is primarily shoreline brush and trees. The total ECM property area is approximately one-third acre and has 100-feet of frontage along Main Street. The ECM property is limited in size for a single redevelopment project. However, combined with adjacent properties, either east or west, the site lends itself well for a larger redevelopment project. As a matter of reference,in 1996 the HRA acquired the King&Main property (3/4 acre) for $410,734.83. In addition, the HRA spent over$44,000 in demolition and preparation of the site. The draft 2001 Downtown Redevelopment Plan includes a general assessment of building conditions. Buildings were rated on a scale of"Good", "Fair", or"Poor". The two ECM April 23,2001 HRA ECM Downtown Property • Page 2 of 2 properties were rated as in "Poor" condition. The "Poor" rating is based on building age and extent of maintenance within the last 10-yrs. The buildings certainly have the potential to be rehabilitated,but not without a higher cost than to build new. Properties within the Downtown Redevelopment Plan area were also assessed by the Heritage Preservation Commission (HPC) for historic significance. Each parcel was measured against the eight criteria outlined within the City Ordinance. The ECM buildings individually were ranked of low-to-medium significance. The HPC noted that while individual buildings may have a low or medium significance, when combined with adjacent buildings the area represents a unique visual feature of the community's history. The ECM buildings are located on the eastern edge of this described block. The HPC also strongly recommended that the historic significance of parcels in the study area be professionally reviewed for further detail. Recommendation The HRA has essentially two options when considering participation in redevelopment: • Initiate the redevelopment project by investing in the acquisition, site preparation and marketing for new development or rehabilitation, e.g. King&Main project; • • Assist in financing or coordinating desired redevelopment proposals brought forth from the private sector The HRA's acquisition of the property would ensure control over the type of development that would occur on the site versus risking an"undesirable" use by private sale. In addition, the HRA could have time to consider a larger redevelopment project that would include adjacent sites. Staff has also received interest from a few developers who would consider a larger redevelopment project along the River. Without the completion of the Downtown Redevelopment Plan it is premature to determine a consensus for the desired redevelopment of the ECM property. Staff recommends the HRA consider determining the desired fate of the ECM property until after the joint worksession with the Planning Commission and River's Edge Downtown Association. The joint worksession will provide additional information about downtown's market position based on the results of the analysis by Maxfield Research Group. The worksession will also provide an opportunity for the group to identify together the desired areas for redevelopment,rehabilitation and suggested land uses. • •"/Yli lip?6 'Oto A�NVE ---; , $ o $ o �S' S_ , . Cf) tp 0�S w $ 14?.56• S N 157.°•-0505 $ o+g* . '4p5_°St° v u$ 4 _405, �_ Y' o •4 75_ '•20 a ar \ a as 00• 403'ps25 a ok 60.00 73��5_ 530 x N% �5'465oo. 0 5`0S15 $s 75 C 83'd'\ . -4°5-05 ..• N $ 75-405_ 5 ° 60 ti +c ?5 . o `405_0535 Cl)vo • 00 50•75 u _5_0$ a N I Io $ • 75-4ptu0l5p Z 7S,44t- 01S1 U Z CD 165.0p • A 15 �S_0a10 50 +$� Nau w 7S_ $ \ t _=430 75X5'0440 4 m ,5-4pS' 45 o co + 33 v 150.00' V S - 0 1' $ 8 � ni �1so.pp• y N �� w ii 4101111186.917 $ 0 - w I u CA 81 .w c.a Illr 1 G W O • 7-) V/ v ao / I U 114 ill �g