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5.0. HRSR 07-23-2001 Item 5. 11,* O City of Elk River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Developmen DATE: July 23, 2001 SUBJECT: Downtown Riverfront Redevelopment Concept - Update Since the June 27, 2001 HRA meeting staff has been working with developer, Best& Hempel to refine the redevelopment concept based on input from the HRA. Best& Hempel is also conducting financial and market analysis for the project. Staff anticipates that this planning and analysis step will take several months to complete prior to bringing back to the HRA for consideration. Staff has also discussed with Steve Rohlf,Building& Zoning Administrator, the HRA's • direction to proceed with an application for the historical context study grant. Attached is a memo from the Heritage Preservation Commission regarding the commission's recommendation to complete the study. The HPC suggests two options for HRA consideration in light of grant funds not being available until June 2002: 1. Wait for a grant to complete the context study (thereby,wait to consider any redevelopment proposals); or 2. Conduct a context study without grant money The HRA will be reviewing the proposed 2002 budget at their August 27, 2001 meeting. Staff has included$6,000 for completion of the context study. The study is estimated to cost between$10 - $12,000. The grant would award the city half the cost of the study. The study is anticipated to take up to six-months to complete. No immediate action is necessary on the authorization for the context study, since the redevelopment project is still under preliminary concept analysis by both potential developers. e 4,/ tik MEMORANDUM ""*" TO: Housing and Redevelopment Authority River 13065 Orono Parkway FROM: Heritage Preservation Commission Elk River,MN 55330 DATE: July 16,2001 SUBJECT: Kraus Anderson Redevelopment Proposal for Downtown Area The Heritage Preservation Commission(HPC) wishes to stress in the strongest possible terms the importance of understanding the significance of the various buildings in the Downtown area prior to accepting a redevelopment proposal. Possibly more than any other part of Elk River,the Downtown area symbolizes the character of the community. For a large segment of our population,the familiar visual feature of these groupings of buildings is a direct tie to our past that instills a sense of community. The HPC is not necessarily opposed to selective redevelopment, but the true significance of structures Downtown, either individually or as a district, can not be fully ascertained without all of the necessary information. To that end, a context study with a focused survey on the Downtown area should be conducted before any redevelopment proposal is III seriously considered. Unfortunately, grant money for a study will not be available until June of 2002. This leaves the city with only two acceptable options: wait for a grant to do the context study (consequently wait to consider any redevelopment proposals) or conduct a context study without grant money. Because of the irreversible nature of redevelopment,the HPC is opposed to considering the merits of any request of the magnitude and potential impacts of the Kraus Anderson concept without the benefit of a study. The HPC stands ready to do its job and is currently looking for alternative sources of funding to initiate this context study. The prudent course is to gather all pertinent information prior to making major decisions. The HPC looks forward to working with the HRA to revitalize the Downtown area and preserve the non-renewable cultural heritage of Elk River. • Phone:763.441.7420 Fax:763.441.7425 wwwci.elk-rivecmn.us