8. HRSR 03-02-2009Item # 8
City of
Elk -~-,
River
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: March 2, 2009
SUBJECT: Discuss Reduced Sale Price for Property Described as 356 Jackson Ave
Attachments
Current Listing Profile for 356 Jackson St, Elk River -Prettier Commercial Properties
HRA October 2, 2006 Meeting Minutes.
HRA January 2, 2007 Meeting Minutes
Issue
At its October 2006 meeting the HRA reviewed a fisting profile dated August 2006 for the property
located at 356 Jackson Avenue. The listing price was $389,900. It was the consensus of the HRA
not to consider acquisition of the property due at that time due to the limited resources and the
undetermined redevelopment potential of the property until the Downtown Redevelopment Plan is
completed. Staff notified the listing agent of the HRA's discussion.
Subsequently in January 2007 the sale price was reduced to $299,900. Following review the HRA
issued a similar response to the owner's request.
Most recently staff received new information from the property owner, Mr. Ken Beaudry, who
requested the HRA's reconsideration with a new reduced price of $179,900 as noted on the attached
listing profile. In addition the owner indicated to staff that the sale price includes the owner's
removal of pumps, tanks and any related environmental clearances.
Staff requests the HRA's direction on this issue based on the new information.
S:ADowntown Revitalization\Memos~2007\3.2.09 cirdec.doc
PR C~PFRTY FF. ATT TR F~
Former gas station
Great location 100' from Hwy 10
• Pumps & tanks with or without sale
• Run as restaurant/office or gas
368 Jackson Ave 388 Jackson Ave 388 Jackson Ave
Latitude: 46.304746 Elk River, MN 6b330 Elk River, MN 66330 Elk River, MN 68330
• Demographics Longitude: 33.6117009 Radius: 7.0 mile Radius: 3.0 mile Radiuc: 6.0 mile
2000 Total Population 4,053 17,705 27,073
® 2000 Group Quarters 133 274 296
2007 Total Population 4,603 24,145 37,909
2012Tota1 Population 5,198 28,740 45,256
2007 - 2012 Annual Rate 2.46% 3.55 % 3.61
• 34,000 vehicles per day
Sale Price: $179,900 Taxes: $6,570.00 (2008)
• • • • ~ ~ • ~ r ~ ~
PREMIER
GOMMBRCIAL
PROPERTIES
• 1,344 total square feet on .32 acres
Housing & Redevelopment Authority Page 4
October 2, 2006
COMMISSION BE CONSIDERED FOR THE PURPOSE OF
PREPARING THE REDEVELOPMENT PLAN.
3. CONTRACT WITH EHLERS AND ASSOCIATES FOR FACILITATION
OF THE REDEVELOPMENT TASKFORCE MEETINGS.
MOTION CARRIED 5-0.
Information-Sale Listing for Property Described as 356 Jackson Avenue
Ms. Mehelich provided information regarding a newly listed property at 356 Jackson
Avenue. She stated the HRA would have limited resources to purchase this property.
Commissioner Toth stated the property should be left on the market to gauge the private
market interest in it.
The Commission indicated they had no interest in purchasing the property at this time.
Other Business
There was no other business.
10. Adjournment
There being no further business, Chair Wilson adjourned the meeting of the Elk River HRA
at 5:40 p.m.
Tina Allard
Recording Secretary
Housing & Redevelopment Authority Page 3
January 2, 2007
Discuss Reduced Sale Price for Property Described as 356 Jackson Avenue
Ms. Mehelich stated property at 356 Jackson Avenue has had a price reduction and the
realtor asked the HRA to reconsider purchasing the property.
Chair Wilson noted the reduction in the price was quite sizeable but that the HRA recently
purchased two other properties and didn't have funds available at this time.
Commissioner Motin concurred. He stated the Redevelopment Task Force is not far enough
along in the process of evaluating the needs/wants of the redevelopment for this area so it
would be premature to purchase this property.
Commissioner Toth stated it would be appropriate to let the market decide if the reduced
price is worth it for someone else to purchase the property.
8. Discuss Property for Sale at 620 Ouinn Avenue
Commissioner Motin stated he was the administrator for this property a few years ago. He
stated the property was in extremely poor condition but the current owner has made
improvements to the property, is leaving town, and would like to sell it. He stated the
purchase price is $150,000. Commissioner Motin stated the HRA is not in the position to
spend funds for another property and does not have a plan for it but developers own much
of the surrounding property so it may be ripe for redevelopment. He stated there are safety
issues with the 6~h Street intersection along TH 10.
Commissioner Toth stated the price for this property seems to be a fair buy due to its size
and location between two commercial areas.
Commissioner Kuester questioned if this area had been considered for neighborhood
commercial zoning during the comprehensive plan update.
Chair Wilson stated the access in this area is very difficult.
Ms. Mehelich stated the HRA should create a redevelopment plan for this property prior to
consideration of acquiring it She stated staff could find out more information regarding the
area surrounding the property and bring it back for discussion at the next HRA meeting.
Mr. Clark questioned if the intent of the HRA would be to complete the rehabilitation of the
property and lease it out, or to buy and hold it.
Commissioner Motin stated it would be to buy and hold it.
9. Other Business
There was no Other Business.
10. Adjournment
There being no further business, Chair Wilson adjourned the meeting.
Tina Allard