04-05-2004 HR MIN - Laserfiche WebLink

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Housing&Redevelopment Authority Page 2 April 5,2004 411 in process,including the City application to the MN Department of Employment& Economic Development (DEED) for Small Cities Development Program grant funds,and the second round application submitted by MetroPlains to the MN Housing Finance Agency for additional housing tax credits. Vern Hanson of MetroPlains stated that they have been working on the following items for the past 60 days: Additional funding,site assembly process, and selection of a"for sale" agent/team. He stated that he believes they have found a way to tie the Bluff and Jackson Block projects together. Larry Olson of MetroPlains stated that MetroPlains prepared to do the projects on a linked basis. He stated that City,DNR,Army Corps of Engineers,and MnDOT approvals will be required for portions of the Bluff and Jackson Block projects. He stated that property may be acquired prior to the start of construction.He stated that MetroPlains would like the Jackson Block to precede the Bluff Block. Sid Inman of Ehlers&Associates stated that he believed MetroPlains is getting closer to linking the two projects together. Commissioner Toth asked when a Development Agreement would be ready. Mr.Inman stated that the Development Agreement could be completed as soon as the City directs that it be done. Commissioner Toth asked if the Bluff Block could be done first. Mr.Inman stated that MetroPlains does not believe the Bluff Block can go without the Jackson Block in place. Mr.Inman asked that the HRA give a deadline for the Development Agreement. Commissioner Toth stated that it was his understanding that April 5th was the deadline for the Development Agreement. Mr.Inman stated that numerically,the Bluff Block stands alone,but that he was not sure that it would stand alone in terms of tax increment need, reduction in city fees,or marketing. Commissioner Motin asked if the contract with MetroPlains were not extended,if the City was free at this point to seek other proposals. Mr.Inman stated yes.Chair Wilson stated that he would prefer that the City operate without a pre-development agreement at this point. Larry Olson stated that it was not possible to complete a development agreement after the March 17th meeting due to scheduling. He stated that their attorney,Bob Dieke,is ready to move forward with the development agreement. Commissioner Motin stated that he would prefer to see Mr.Inman and MetroPlains continue to work together. He stated that he felt it was the right thing to do to develop the Jackson Block before the Bluff Block,since it will be tougher to do the Bluff Block. He stated that he questioned whether or not it was appropriate for MetroPlains to ask for additional financial incentives. Chair Wilson stated that he would like to see strong strides made in the next 30 days to get the development agreement wrapped up. Commissioner Toth stated that he is unsure if MetroPlains is entirely the reason for the hold up in the process and stated that Ehlers&Associates needs to be aware that the City is not willing to continue delaying the process much longer.