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Housing £~ Redevelopment Authority Page 2 May 3, 2010 ----------------------------- shop, and additional art classes, which were previously located at Handke School. He stated • that the Arts Alliance would like to do a cost analysis this summer and come backto the HRA in September with a proposal. Commissioner Lieser asked if the Arts Alliance has checked into renting other space. Mr. Stander stated theywould like to stay in Elk River. He stated that have also looked at other areas in Sherburne and Wright Counties. Dave Raymond, Chairman of the Board for the Arts Alliance, stated that they would like to stay and expand where they are. Lori Hood stated that she has been with the Arts Alliance for six years and helps run the classes. She stated that it makes sense for them to staya~rere they are. Ms. Hood stated that the location has been a boon for their organization, and they have teachers coming from other cities to teach their craft such as writing, reading, boolffnahrrg, jewelry making, etc.; thereby increasing their revenues. She explained that the extra space would allowthem to expand into other areas such as clay, photography and calligraphy. Chair Wilson stated he encouraged the Arts Alliance to continue researching the possibility of expansion. Commissioner Motin stated he had significant reservations about the Arts Alliance continuing long term at this location. He stated that the HRA purchased the property with the intention of using the site for a parking facility at some time in the future. He stated he did not want to see the Arcs Alliance spend moneyfor improvements that they would not recover. He stated he would not support a lease longer than five years or so. He stated that he agreed there is a need for the programs the Arts Alliance has to offer. Chair Wilson stated that the HRA has worked with the Arts Alliance in the past, but that • they need to look at what they want and how much it will cost. He stated that the HRA could not consider a long term lease, such as tv,~nryyears. It was the consensus of the Commission to allow the Arts Alliance to further explore remodeling of the 720 Main Street building owned bythe HRA. 6. Consider Modification to Tax Increment Financing District # 16 Ms. Mehelich reviewed recent changes in legislation regarding the use of TIF and the impact on the City's TIF District No. 16. She noted that recent changes will allow deferment of HRA payments to itself for 2 years in order to preserve approximately4100,000 to finance an eligible private development. She stated that if the HRA is interested in a project, she would come back with a list of possible projects the HRA could consider at their June 7th meeting. Chair Wilson asked whythe debt is being paid back quicker than expected. Ms. Mehelich explained that the market value of the First National Financial Center is significant enough to pay down the HRA's debt obligation (approximately $400,000) quicker. Commissioner Motin asked what happens to the $100,000 if there is no project. Ms. Mehelich indicated she would find out from the city attorney. Commissioner Motin asked if they have closed the opportuniryto benefit from creating the financing tool if no project is identified or is completed bythe statutory deadline. •