5. HRSR 10-06-2008REQUEST FOR ACTION
To Item Number
Housing & Redevelopment Authority 5•
Ma or & Ci Council
Agenda Section Meeting Date Prepared by
October 6, 2008 Catherine Mehelich, Director of
Economic Develo ment
Item Description Reviewed by
Consider Resolution Authorizing Rental of Certain Units in Lori ohnson, Ci Administrator
Bluff Block Development Reviewed by
Action Requested
The HRA is asked to consider and recommend City Council's final action on a Resolution Authorizing
Rental of Certain Units in Bluff Block Development. The City Council will consider action on the
resolution immediately following the HRA meeting.
Background/Discussion
In response to the September 20, 2008 Lion's Park Apartments fire, staff received a request from
Minnwest Bank, owner of the Bluff Block Development in downtown Elk River, as to the City's
consideration to allow temporary rental of certain residential units for displaced families. The Bluffs
owner indicated immediate availability of six 2-bedroom and two 1-bedroom units available to rent to fire
victims.
Staff consulted with the city's development attorney at Briggs & Morgan with regard to any impact of the
proposed change in use pursuant to the February 16, 2006 TIF Development Agreement between the
City and developer. The attached Resolution formalizes certain understandings and approves the
temporary change in use.
Financial Impact
According to the City's Finance Advisors, Ehlers & Associates, the request is not believed to be
problematic from a bond holder or security standpoint due to the Minimum Assessment Agreement in
place for the TIF note.
Attachments
• HRA Resolution No. _ Recommending Authorizing Rental of Certain Units in Bluff Block
Development
• City Council Resolution No, _ Authorizing Rental of Certain Units in Bluff Block Development.
ACtlon Motion by Second by Vote
Follow Up
S:\Downtown Revitalization\Development Agreement\FINAL AGREEMENT\10.06.08 Action Requested.doc
EXTRACT OF MINUTES OF MEETING
OF THE BOARD OF COMMISSIONERS OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF
THE CITY OF ELK RIVER, IVBNNESOTA
HELD: October 6, 2008
Pursuant to due call and notice thereof, a meeting of the Board of Commissioners of the
Housing and Redevelopment Authority of the City of Elk River, Sherburne County, Minnesota,
(the "HRA") was duly called and held at the City Hall in the City of Elk River, Minnesota (the
"City") on Monday, the 6th day of October, 2008, at 5:30 o'clock p.m.
The following commissioners were present:
and the following were absent:
Commissioner introduced the following resolution and moved its
adoption:
RESOLUTION NO. 08-03
RECOMMENDING AUTHORIZING RENTAL OF CERTAIN
UNITS IN BLUFF BLOCK DEVELOPMENT
A. WHEREAS, the City and 1VletroPlains Development, LLC, a Minnesota limited
liability company (the "Developer") have entered into an Amended and Restated Development
Agreement, dated as of February 28, 2006 (the "Development Agreement") in connection with
the construction of a multifamily housing and commercial development located in the City and
defined as the Bluff Block Development and the Jackson Block Development in the
Development Agreement (the "Project"); and
B. WHEREAS, pursuant to the Development Agreement the Developer has
constructed, as part of the Bluff Block Development, approximately 67 units of owner-occupied
housing, together with related parking facilities, (the "Bluff Block Housing Project"); and
C. WHEREAS, in order to accommodate individuals and families displaced by a fire
in the Lions Park Apartments building in the City, the City and the Developer propose to
temporarily authorize leases of the lxnits in the Bluff Block Housing Project.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Housing and Redevelopment Authority of the City of Elk River, Minnesota, as follows:
1. Notwithstanding the provisions of the Development Agreement defining the Bluff
Block Housing Project as owner-occupied housing, the Board of Commissioners hereby
recommends that the City authorize market rate leases of units in the Bluff Block Housing
Project to individuals and families who were residents of the Lions Park Apartment building in
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the City during the month of September, 2008. The Board of Commissioners further
recommends that such leases shall terminate not later than October 31, 2009.
The motion for adoption of the foregoing resolution was duly seconded by Commissioner
and, after full discussion thereof, and upon a vote being taken thereof, the
following voted in favor thereof:
and the following voted against same:
Adopted this 6th day of October, 2008.
Larry Toth, Vice-Chair
Attest:
Secretary
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STATE OF MINNESOTA
COUNTY OF SHERBURNE
HOUSING AND
REDEVELOPMENT AUTHORITY
OF THE CITY OF ELK RIVER
I, the undersigned, being the duly qualified and acting Secretary of the Board of
Commissioners of the Housing and Redevelopment Authority of the City of Elk River,
Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing
extract of minutes with the original minutes of a meeting of the Board of Commissioners held on
the date therein indicated, which are on file and of record in my office, and the same is a full,
true and complete transcript therefrom insofar as the same relates to a Resolution
Recommending Authorizing the Rental of Certain Units in the Bluff Block Development.
WITNESS my hand as such Secretary of the Board of Commissioners of the Housing and
Redevelopment Authority of the City of Elk River, Minnesota this 6th day of October, 2008.
Secretary
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