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Housing & Redevelopment Authority <br />April 4, 2011 <br />Commissioner Kuester stated that under $10,000 in maintenance expenses was not <br />unreasonable, given the costs of demolition. She stated that she sees the Arts Alliance as an <br />asset in the downtown for the time being. Chair Wilson questioned whether or not it makes <br />sense to put a lot of money into repairs, but he also could not support a long term lease with <br />the Arts Alliance. <br />Commissioner Motin stated that the former city engineer calculated 21 spaces could be built <br />on the site, with a future plan to build a ramp. He stated he was concerned about how much <br />money would need to be put into the buildings to keep it safe. He felt that an 18-month <br />lease was the longest lease that he would consider acceptable with the Arts Alliance. He <br />stated that if the former First National Bank building doesn't work out for them, they will <br />need to look for another site. <br />Ms. Mehelich noted that the lease agreement provides for asix-month notice to terminate <br />the lease. She stated that she will bring back this issue ~~%hen more information is available. <br />6. Consider TIF 16 Fund Request -Elk River Pizza Ranch <br />Ms. Mehelich provided background information regarding TIF District Na. 16. She <br />presented the request by Robert McDonald for TIF District 16 funding, as described in the <br />staff report to the HRA dated Apri14, 2011. The applicant is requesting HRA funds in the <br />amount of $90,000 to be provided as a grant to pa`~ far X72,000 WAC/SAC and purchase of <br />adjacent land necessary for parking. <br />Chair Wilson asked if the HRA were to decertify TIF District No. 16, when the funding <br />comes in. Mr. Simon stated that the first half would he ill dune and the 2nd have would be in <br />December. <br />Commissioner '1"oth qucsroned why the applicant felt the additional parking was needed. <br />Mr. McDonald esplauled that his business plan requires 100 parking stalls for seating 220 <br />people, so he would need additional 40 - 45 sp~~es. Commissioner Toth asked where the <br />additional land would come from. Mr. hlcDanald stated it would be from the First National <br />Bank property. Commissioner 'l'oth asked what would happen if the grant is denied. Ms. <br />1Lfehelich explained that the applicant has stated he would likely not locate in Elk River. Mr. <br />McDonald noted that he is limited to the amount he can spend on the project in Elk River, <br />since it is a smaller community. <br />Commissioner Lieser asked why the applicant is not interested in a low interest loan. <br />Commissioner Toth asked why Mr. McDonald was interested in building a project bigger <br />than his investors «-ould allow. <br />Ms. Mehelich explained the criteria for a low interest low versus a grant. <br />Commissioner Motin stated that he felt the concept for the restaurant was good, but <br />questioned having another pizza restaurant, since there are already a number of them. Mr. <br />McDonald stated that he looked at other types of restaurants, but the dollars were just not <br />there to support it. He stated he would also like to see a steak house type of restaurant in <br />Elk River, but market studies just do not support it. <br />Page 3 <br />Chair Wilson stated he initially also had a concern for another pizza restaurant. He stated <br />that after seeing Mr. McDonald's proposal, he felt the project was more suitable for a low <br />