06-06-2011 HRA MIN - Laserfiche WebLink

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Housing & Redevelopment Authority June 6, 2011 ----------------------------- Commissioner Toth stated that the cityportion of her taxes do not go up everyyear. Commissioner Lieser concurred, stating that increases in taxes are generally school district issues. Mr. Lindberg asked how manyparking stalls would be added. Conunissioner Motin stated that 21 spaces would be created, and if tiered there would be over 40 spaces. Chair Wilson stated that putting out RFP's for potential businesses for the properties would be in direct contrast to the HRA's goal to reserve the site for future parking needs. Commissioner Motin stated that the City Council chose to purchase the parking lot across the street from the site to preserve parking in the downtown, as well. He stated that it would be conflict to tryto preserve the buildings. Chair Wilson thanked the HI'C representatives for their input. 6. Consider lease extension for Arts Alliance - 716 Main Street David Raymond, representative of the Elk River Arts Alliance, 716 Main Street, stated that Arts Alliance would like to extend their lease with the HRA. Ms. Deckert provided background information regarding leasing of the propertyto the Arts Alliance, as detailed in her memo to the HRA dated June 6, 2011. Commissioner Lieser asked if the Arts Alliance paid part of the maintenance costs for the building. Ms. Deckert stated yes, the Arts Alliance pays a share of anycosts over $1,000. Commissioner Toth asked if the Arts Alliance was interested in a 1 or 2-year lease. Mr. Raymond stated that theywould prefer a 2-year lease, but would accept a 1-year lease. Mr. Raymond explained that the Arts Alliance continues to explore their options for relocating. He noted that the former First National Bank proposal is still just a concept and no formal agreement has been worked out. Commissioner Toth asked if more parking would be needed for the First National site. Mr. Raymond stated yes, but that most events would be in the evening, when there is less demand for parking in the downtown. He felt that parking for this site would be adequate, assuming the adjacent city lot would be available to them. Commissioner Toth stated he was not opposed to a 2-year lease, since the lease includes an option to cancel the lease, with a 6-month notice. Ms. Deckert stated that the proposed 1-year lease does not include an automatic extension. Commissioner Motin stated that he supported a 1-year lease, which could be renewed if needed. He felt a 1-year lease puts the city in better standing, and has an end date. Mr. Raymond stated that the Arts Alliance would be comfortable with a 1-year lease if they could have the opportunityto renewthe lease next year. Chair Wilson stated that the HRA has had a good relationship with the Arts Alliance and that having them in the downtown has been a positive experience. He stated that the HRA • will continue to keep the Arts Alliance informed of their standing when the 1-year lease is up. Page 3