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Downtown Revitalization Project Update <br /> May 27,2003 HRA Meeting <br /> Page 2 of 2 <br /> As part of the proposed timing, MetroPlains anticipates submitting a financing request to the <br /> MN Housing Finance Agency by July 24th. As part of the submission, some general <br /> consensus issues will need to be reached with details to follow over the next 3 to 4 months. <br /> A special meeting of the HRA in July may be needed to meet this request. <br /> Property for Sale <br /> Staff was recently contacted by Mr. Richard Hinrichs who owns the property located at 641 <br /> Main Street, east of the old Star News building. Mr. Hinrichs has indicated to staff his <br /> interest in selling the property and has submitted the attached proposal for the HRA's <br /> consideration. <br /> The HRA's purchase of the property would provide the HRA control of the site for future <br /> redevelopment rather than having to potentially work through a new owner and additional <br /> improvement costs. However, according to the HRA's attorney,Jim O'Meara, the purchase <br /> of the property prior to establishment of the TIF district would make the cost not <br /> reimbursable with TIF revenues due to timing requirements. Also, should the <br /> redevelopment project fall through, the HRA would be left owning the property, similar to <br /> the King and Main TIF project. For this same reason it is also not appropriate for the <br /> developer, MetroPlains, to consider purchase at this time. A second option for the HRA to <br /> consider at this time is to do nothing. <br /> The HRA's attorney and Ehlers &Associates have advised staff that the HRA not purchase <br /> • the property at this time. For these reasons, staff recommends that the HRA consider <br /> denying the proposal for the purchase of 641 Main Street. <br /> • <br />