7. HRSR 03-02-2009Item # 7
Kiver
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: March 2, 2009
SUBJECT: Discuss Improvements to HRA Buildings at 716 & 720 Main
Street
Background
In late December 2006 the HRA entered into a 5-year contract for deed for the purchase of
the buildings at 716 & 720 Main Street, formerly known as the Houlton buildings. The
primary purpose of the HRA's purchase of the property was to take advantage of the nono-
leveraged sale as part of a long term positioning strategy to be able to expand surface and
possible deck parking downtown.
In January 2008 the Elk River Area Arts Alliance began occupancy of the 716 Main Street
building under a 2-year lease authorized by the HRA. In addition, First National Bank
continues to lease the basement of 716 Main Street. The building at 720 Main Street has
been vacant since September 2007 when the lease with O'Reilly Auto Parts expired, with the
exception of a small storage area leased by Arts Alliance.
Issue
It has come to staff's attention that the buildings have been experiencing several roof leaks,
particularly the Arts Alliance building. According to city maintenance staff, who have
consulted with a private contractor, the roof requires either a repair to temporarily patch the
problem areas (estimate $3,500) or a re-roof (estimate $35,000-40,000). No formal estimates
or bids have been requested at this point. In addition, maintenance staff has advised that the
rooftop HVAC unit is in a very weak condition and may require major repair or replacement
in the future, if the buildings are continued to be occupied.
Staff requests the HRA's discussion on short term and long term intentions for the
buildings, and provide direction regarding the extent and timing of improvement options.
S:\EDA\HRA\Houlton Buildings\3.2.09 HRA.improvements.doc