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Housing&Redevelopment Authority Page 2 <br /> November 1,2004 <br /> Commissioner Toth asked when the Bluff buildings would be taken down, (with the <br /> • exception of the US Bank). Mr. Hanson noted that demolition will begin when the King <br /> Avenue parking lot project is started. <br /> Chair Wilson asked when construction on the Bluff Block will begin. Mr. Hanson explained <br /> that it is anticipated that construction will begin in October,in order for US Bank to <br /> complete construction of their new building. Commissioner Motin asked if the US Bank <br /> building would be purchased by MetoPlains and then leased back to US Bank until they <br /> move out. Mr. Hanson stated that the details will be included in the Development <br /> Agreement. Commissioner Motin asked if MetroPlains will close on the US Bank building <br /> before starting on the Jackson Block. Mr. Hanson stated yes. <br /> Mr. Hanson stated that they anticipate both projects will be completed in 2006. <br /> Ms. Mehelich explained the City's risk in the project. She stated that if MetroPlains fails to <br /> complete the Bluff Block project, then there would be no TIF revenue to reimburse the City <br /> for eligible costs. <br /> Larry Olson of MetroPlains discussed financing of the project. <br /> Mary Ippel of Briggs &Morgan explained that the developer has already spent a great deal <br /> of time and money on the project and they have not received any TIF yet. She explained <br /> that there will be a mortgage on the Bluff Block. She explained that there will be five <br /> conditions in the Development Agreement that must be completed before the Jackson <br /> Block property will be deeded over to MetroPlains. She concluded that even though the <br /> City will be at some risk, the developer will be at an even greater risk. <br /> Chair Wilson stated that he felt all parties should proceed with the Development <br /> Agreement.. He stated that he felt the projects are being linked together as best as possible <br /> to develop them simultaneously. Commissioner Motin stated that he felt the five provisions <br /> outlined in the November 1,2004 memo from MetroPlains secure the City well. <br /> Ms. Mehelich stated that this issue will be brought back to the HRA within the Development <br /> Agreement at their December 6th meeting for final approval of the construction schedule. <br /> 5.1. Small Cities Development Program Grant—Consider HRA as Local Development <br /> Organization <br /> Assistant Director Heidi Steinmetz explained that only MN Department of Employment& <br /> Economic Development(DEED) requires that the City designate the HRA or EDA as the <br /> Local Development Organization for the administration of the Small Cities funds. In order <br /> for the HRA to be designated as the Local Development Organization (LDO) for the <br /> Jackson Block housing portion of the Downtown Revitalization Project,a resolution <br /> approved by the City Council is required. Staff recommends that the HRA consider <br /> requesting that the City Council adopt a resolution requesting DEED to designate the HRA <br /> as the LDO. Ms.Mehelich noted that a similar resolution was adopted for the Sportech <br /> expansion project,in order to transfer the administrative responsibilities to the EDA. <br /> Chair Wilson asked what the dollar amount was for the funds. Ms. Steinmetz stated <br /> $400,000. Commissioner Motin asked if there was any obligation for the HRA if designated <br /> • an LDO. Ms. Steinmetz stated that Short Elliot Hendrickson (SEH) will handle the project <br /> administration as contracted. Commissioner Toth asked if it would be worthwhile to train <br />