3.1. DRAFT HRA MINUTES 05-02-2011

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Housing & Redevelopment Authority Apri14, 2011 discussion was warranted regarding whether or not the reason for acquiring the properties was still valid and what their options were. Commissioner Lieser asked if anyone has been able to determine if the wall between 720 Main and Elk River Meats is a shared wall. She asked if the buildings could be demolished without damaging Elk River Meats. Ms. Mehelich stated that determination would need to be made by a structural engineer, but staff believes there is at least a portion of the wall that is shared. Commissioner Toth asked if the Robecks (owners of Elk River Meats) know if the wall is shared. Ms. Mehelich stated that staff has not discussed this with them. She noted that there is a parry wall agreement that came up in the rifle work when the HRA purchased the property. Chair Wilson stated it seemed prudent to find out this information. Commissioner Moon stated that he would not be in favor of selling the properties or allowing a long term lease, since he felt there will be parking needs in the future. Commissioner Toth agreed that the property will likely be needed for parking in the future. Chair Wilson stated he would like to know if the buildings could be removed without damaging Elk River Meats. Commissioner Motin agreed that it will be necessary to find out at some point, but he did not feel the time was an issue now. Ms. Mehelich explained that it is the Arts Alliance intention at this time to continue their lease another year, and that the agreement provides that repairs over X1,000 will be split 50 - 50. Commissioner Toth stated that at one point the Arts Alliance expressed a desire to expand into the 720 Main Street space. Ms..Mehelich stated that the ~~rts Alliance did look at costs to do that, but given the HRA's desire for. ~ short term lease,. they did not find the expenditure feasible. She stated that if the HRA were to consider a longer lease, they might be interested. Commissioner Toth stated that since they did not know what the future parking needs will be in the downtown when the economy picks up and"spaces in the downtown begin m till. Commissioner Motin stated he would not support a long term lease, since the HR,~~ may necd to act quickly ul creating parking. Chair Wilson stated that they also need to consider being proacrive with maintenance issues. Commissioner Toth asked if any problems are anricipated. Ms. Mehelich reviewed the history of issues and repairs for the building since 2009, including the age and condirion of the roof and HVAC units. Commissioner Kuester asked what the estimated cost of removal of the buildings might be. Ms. Mehelich stated that the cost was previously estimated at $50,000 and this number did not include any costs for environmental issues or shoring of the adjacent building. Commissioner Kuester stated that she understood the concern for ongoing maintenance costs, but that the HRA will also have expenses if the buildings are taken down. Commissioner Kuester asked what the HRA considers a "long term" lease. Commissioner Motin stated that he felt anything over 12 months would be long term. Commissioner Toth quesrioned if the Arts Alliance would have adequate parking if they were to move into the former First Narional Bank building. A comment was made that they .likely would not have adequate parking. Commissioner Kuester asked if the parking behind the businesses would be available to them. Commissioner Motin stated that the city is considering purchasing this property. Page 2