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5. HRSR 05-03-2010ITEM # 5. Ci t-uver MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: May 3, 2010 SUBJECT: Consider Request by Elk River Area Arts Alliance for Use of 720 Main Street Building Attachment • Correspondence from Arts Alliance dated Apri112, 2010. Issue The Elk River Area Arts Alliance is interested in expanding its operations in the HRA buildings downtown. Specifically they axe requesting the HRA's permission to allow ERAAA to further explore remodeling the adjacent 720 Main Street (former auto parts) building under a longer term lease. 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 non- 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. The lease was recently extended an additional 2-years commencing December 31, 2009. 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 temporary storage/special events by Arts Alliance. Discussion The attached correspondence from the ERAAA Executive Director John Standen summarizes their process to research and explore options to expand in the downtown location. Mr. Standen will be at the HRA meeting to answer any questions as part of the HRA's discussion. . • ~~ ~• . N t P.O. Box 737 716 Main Street Elk River, MN 55330 Cathy Mehelich Director of Economic tJevelopment the City of ENc R ver 13065 E3rono Pkwy Elk River, MN 55330 E)ear Cathy, alliance 763-441-4725 info@elkriverart.org www.elkriverart.org Afxil !2, 2f)1~ In December you asked for information as to how the Arts A##iance vrFOttld use the store front nexf to our present location. We are interested in expanding our'operatiorts and this trvoufd be a viaf#le solution for us at the present time. To this end our Board of t}irectors has initiated a feasibility stud~r to assess ihis option. We havebeery ~ our present fc~catron for two years, and it has albwed us to expanc# ou-' programs, provided us greater retx5gnit~n within the Elk River community, arx provided us with additional storage and staging leas #ot our other programs. Specifically, we have adc~d artt classes for bath children and adults, an art gallery and gift shop in support of local artists, storage space for equipment needed for the biennial ArtSoup festival in downtown Elk River, and a staging area for art pieces far our annual Arts in Harmony, a national juried show that has grown to be tfte largest exhibit of its kind ~ the State. f~u•e C~,Ertft White our present k~cat~n has allowed us to expand our programs, it is rat sized or equipped to offer some of the serviires contained in our mission statement. In particuur, the or3e elassraorrm is not large enough to accorrrmodau chose wishing ~ enroll in cusses. In the two years we have been at this location, enrollment for many of our classes has grown from a minimum of four students to an enrollment of ten wifh waiting fists (ten is the rra~cirnum number of students the classratm will accommodate). Nor is the classroom equ~ped to offer many of fhe art disciplines that are -standard in other municipal art +~nters, and vr~icfi are popular with their constituencies; in particular, painting, multi-media and cerarres art classes. We also lack space to have small performances, lectures or meetings. While our Performance Series offers tour or five lure perforrnanees from local and national. groups each year in the Nth School theater, rive believe there is a need to offer smaller, rare in#ormal presentatrons. It would also be attractive to offer dance classes. l~easlb+F#ty Study Before making a formal request to the city, the Arts ANance needs to assess the support for such an expansion within the ~wntown business community and within cwr membership. We are presently surveying the business community, and volt conduct a needs assessment within our membership in M.ay and June. we gave also surveyed fourteen other art centers withiro the region to evaluate class enratlments and rnunicipa) support.. Art Classes Arts in Harmony ArtSoup Gallery & Gift Shop Performance Series Strings for Youth An expansion of our faciiity will entail a capita! outlay for construction, and c~r~oing c~perationai cx~sts for additional stsfiing acrd plant expenses. We would like permission from the city to ertfer the building in order to devebp preliminary construct~n estimates. Also, any assessments anti or blueprints th>rtt tf~e city has would tie he~fui. The torxition of the rot# ~d HVAC urri~ wig be part of mis evatuat~n. f~rnarrtency Presently we have a base with the city that can be terminated with six rrron#~s notice from the city. This does riot afford the Arts Afi+ance with Sny sense of permart; rx~r a~utd it be responsible ~ assume the needed construction gists under such a time cat~traint; nor cx3ukf we raise ca~rital ~ from our donors wha cherish stability (stat~iNty is one of reasons supporters give to a capital eampaic,~n). The Arts Alliance has been a part of the Elk River community for over twenty years and we wish to rem~n here. N the city has other plans for this faEaGty and Nus optan is not viatl~e, vwe w~# look elsewhere and hope the ~ wilt help us in this eruieavor. As requested, l enclose with this update a ske#ch of the posse use of tF~ fac~ity. Sincerely yours, tm Starxier Executive Director Elk Rivet Area Arts Alliance ERAAA Mission Statement "Recognizing that the arts are essential to the quality of ~fe and health of our community, we promote an environmerrt which offers quality arts education, arts experiences, artist support, and appropriate facilities for instruction." ctc ERAAA Board of ©irectors Proposed Arts Alliance Expansion 135' x 20' painting & dr /~P I 47' a~ a~ c .~ 0 N a~ a~ sinks j 35' x 20' studio 125' multimedia studio sinks. stain ~~, __, 45' x 34' toilet & sink multipurpOSe auditorium stage emergency exit entrance i ~ Y rinnnr'c wall library, intermission, & waiting area Present Arts Alliance Facility storage or office space 1 cm. = 5 ft. ~ uditoriur storage 2nd floor 10' x 34' possible Office space patio