09-07-2010 HRA MIN SPEC - Laserfiche WebLink

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Housing & Redevelopment Authority September 7, 2010 Page 2 • The structures on the property have been vacant for at least one year; • • The structures constitute a threat to public safety because of inadequate maintenance, dilapidation, obsolescence or abandonment; • The structures are not listed on the National Register of Historic Places; • Upon completion of the demolition, the development authority reasonably expects that the property will be improved and these improvements will result in economic development benefits to the municipality. Ms. Mehelich stated that the key qualification is a reasonable expectation for redevelopment of a site. She noted that some of the sites may be best suited for transportation needs, such as right of way. Commissioner Motin asked if there is a time frame in which development is expected to occur. Ms. Mehelich explained that under the program, the loan is interest-free for two years. Commissioner Motin cited the former Elk River Bowl as an example. He asked if the HRA must reasonably expect redevelopment development in three years. Ms. Mehelich stated that it is a factor of the interest and payment process. If there was no development in year three, principal and interest. payments would begin. If redevelopment occurred in year five, the HRA would likely be able to negotiate some type of forgiveness. Ms. Mehelich stated that this program would be another opportunity to address these properties. She noted that there are other strategies to address these types of properties, ranging from more aggressive code enforcement to more of an assertive role by acquiring blighted properties, demolishing them, and holding them for development. She noted that in the case of the former bowling alley, the city was able to negotiate terms to have the • building removed and assess the cost to the real estate taxes for the property. Ms. Mehelich reviewed the following possible sites for discussion: 1. Proctor and Quinn area 2. Former Circle C and house behind it 3. Former NAPA building 4. Former Back to the 50's restaurant building 5. Two homes on east side of Line Avenue -Guenther properties 6. Sites along East Main Street -between Gates Avenue and Highway 169 Commissioner Toth stated he felt the only two sites that met most of the program criteria were the former NAPA and Circle C buildings. He noted that the NAPA building is owned by the Eagles Club. Ms. Mehelich stated she is aware there have been code enforcement discussions with the owner of the NAPA building. Commissioner Toth stated that it would be a deterrent if the buildings must be owned by the HRA in order to qualify for the program. Commissioner Lieser noted that a portion of the NAPA property may be taken by the future Highway 10 road project. Mr. Toth stated that one side of the NAPA building appears to have been burned and a portion of the roof is caving in. He did not see how any of these properties would qualify at this time due to their lack of potential for redevelopment. Chair Wilson stated the HRA is somewhat "handcuffed" by the future Highway 10 project. He stated that in the meantime, these buildings remain an eyesore. •