6.HRSR 01-07-08Item # 6
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MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: January 7, 2008
SUBJECT: Update -Elk River Area Arts Alliance Lease of 716 Main Street
A lease agreement between the HRA and the Elk River Area Arts Alliance (ERAAA) was
executed in mid-December 2007 for use of the 716 Main Street building. The term of the
lease commenced January 1, 2008 and expires December 31, 2009.
At its December 2007 meeting the HRA inquired why the properties (716 & 720 Main
Street) were not tax exempt from real estate taxes. According to the Sherburne County
Assessor, by state statutes the HRA could not apply to have the property exempted from
real estate taxes due in 2007 because the transaction did not close before July 1, 2006.
Negotiations on the property began in July 2006 and the closing occurred December 28,
2006. Tax exempt status of the properties has been applied for and confirmed by the
County Assessor for real estate taxes due and payable in 2008.