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6.1. SR 06-21-1993 ~,ty of r:l ITEM 6.1. I) I r FROM: MAYOR & CITY COUNCIL WILLIAM RUBIN, ED COORDINATOIJV2- JUNE 17, 1993 TO: DATE: SUBJECT: CHAMBER OF COMMERCE PROPOSAL FOR CREAMERY SITE INTRODUCTION On June 21, the Elk River City Council will hear a presentation by Duane Kropuenske, Chair, Chamber Office Space Committee, regarding a proposal to site a permanent Chamber Office building on the City-owned property near the intersection of U.S. Highway 10 and Main Street. BACKGROUND A Chamber Office Space Committee was recently formed to explore various options available to the Chamber regarding the siting of a more permanent office location in Elk River. First National Bank of Elk River has donated office space to the Chamber for the past fifteen years. However, due to the pending expansion of the Bank's services, a Committee was formed to study space options. Members of the Committee include: Duane Kropuenske (Chair), Patsy Kropuenske (Co-Chair), Chuck Christian, Dennis Chuba, Pat Rasmusson, Don Heinzman, Jim Babcock, Jackie Schuelien, Vicki Sullivan, and Bill Rubin (City staff liaison). The Committee looked at a number of elements, including factors such as desired space requirement, expenses, funding sources, and ultimately, various site possibilities. In mid- to late-April, the Chamber Board of Directors approved an expenditure of Chamber funds for the preparation of a building elevation and site plan for the former creamery property at U.s. Highway 10 and Main Street. A portion of this site is subject to a purchase agreement by and between the City of Elk River and United Power Association (UPA). A condition of the purchase involved the vacation of that portion of UPA Drive as a public right-af-way as well as UPA granting the City an easement over, upon, and across the property to access a well and filtration plant and, for purposes of ingress, egress, and access to the remaining property not affected the purchase agreement. The sale is also subject to certain restrictive covenants. That is, the City's unsold portion of the site shall not be used for retail or private commercial purposes. The covenants, however, do not limit the use of the site for governmental, quasi-governmental, or nonprofit organization purposes. This P.o. Box 490 fj) 13065 Orono Parkway fiE) Elk River, MN 55330 e (612) 441-7420 f) Fax: (612) 441-7425 permits the site to be used for a government building, Chamber of Commerce building, or park and ride facility. With that, the Elk River Area Chamber of Commerce proposes to site a permanent office facility on the remaining unsold portion of the property. No sale of land is being proposed. Rather, the Chamber is proposing a long-term land lease which would permit it to locate a building on this property. Specifically, the Chamber proposes to relocate the building currently found at 317 Main Street. This building is owned by Mr. Dennis Chuba, of the Chuba Company, who occupies it as office space for his construction company. In addition, the Chamber proposes to add a new porch roof extension, a trellis, and an observation patio which would compliment the City's planned landscaping of the balance of the site. The Chamber has funds available for a portion of this relocation/expansion project. The Chamber would also rely on volunteers and donated time and materials to complete the project. In order to justify a Chamber Office at this location, Committee members were advised that its project had to be imaginative. The Highway 10-Main Street intersection is generally viewed as the entrance to the community. The landscaping project recently completed by the Bank of Elk River, combined with the planned and pending landscaping projects by the City reenforces this concept. With its proposed additions to the Chuba building, it is believed that the Chamber has accomplished this requirement. ACTION REQUESTED After hearing a presentation by Duane Kropuenske, the City Council will be asked to further explore the details of a land lease to allow the Chamber of Commerce to site an office building on the City-owned property at Highway 10 and Main Street. --- --- Jt~r 10 tJOf2J11 ~ COMM8Rce ~L\(. R..' V 8T2- CHM'\f:>6r2. OF P~DPO~ED 5Lm ~ '5 ~ 20 -Gf.3 l~ 20'