6.1. SR 07-06-2004 - Laserfiche WebLink

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~ 1/~;b<j ~&.I DoUJ11ioU/ltt 1(~fV &A Newsletter JUNE 2004 Enhancing Downtown Elk River's Role As a Vital Retail, Commercial and Residential Area. Q. What is happening with the Downtown Revitalization Project? A. On May 3, 2004, the Elk River Housing & Redevelopment Authority (HRA) approved the key points of a final develop- ment agreement with MetroPlains Development for the Bluff and Jackson Blocks. The HRA and developer are working on the final development agreement which will be finalized upon the establishment of the Tax Increment Financing (TIF) District. This is expected in late summer 2004. Q. What type of development is proposed for the Bluff and Jackson Blocks? A. The Bluff Block is located on the southwest corner of Main St. and County Rd, 42 (Parrish Ave. Bridge). The Bluff Block proposal includes a four story building with an estimated 68 underground parking stalls; about 10,000 square feet of commercial space on the first floor along Main Street; 52 for-sale residential units and a riverwalk connec- tion to a city park. The Jackson Block is located on the northeast corner of Jackson Ave. and Main St. The Jackson Block proposal includes a three story building with an estimated 50 under- ground parking stalls; 32 rental housing units and about 10,000 square feet of commercial space on the first floor along Main Street and Jackson Avenue. River and to assure the public's involvement in the planning and design stage. Q. What is the anticipated schedule for the project? A. The anticipated project schedule is as follows: · TIF District established - late summer 2004 · Final development agreement - late summer 2004 · Land use approvals - fall/winter 2004 · Property acquisition - summer/fall 2004 · Land clearance and construction - spring 2005 Q. How will the project be funded? A. The project will be funded primarily by MetroPlains' financing related to future sales and rentals of residential and com- mercial space. The City provides assis- tance through Tax Increment Financing (TIF) as necessary for public improve- ments. The City has retained financial con- sultants to ensure that any assistance pro- vided to the developer is only the amount that is justifiable and reasonable. Q. What is Tax Increment Financing (TIF)? A. TIF is a financing tool created by the Minnesota Legislature in the 1970s to help encourage development and redevel- opment of underutilized and/or blighted properties. Under TIF, property tax revenue equivalent to what the current property generates continues to go to all taxing jurisdictions. The portion of the tax revenue that results from the increased value of the new development, also called the "tax increment," is used to pay site costs such as acquisi- tion, demolition, water, sewer and street improvements. Once the site costs have been paid, the tax increment goes to the taxing jurisdictions. Q. Why does the HRA need to establish a TIF District? A. Minnesota State Statute permits cities to establish TIF Districts as a method to assist with redevelopment. Establishing a TIF District allows the HRA/City Council to capture the tax increment created by the new development. Then the HRA/City Council may use portions or all of the increment to provide financial assistance to the developer. Q. Which of the blocks will be developed first? A. MetroPlains has agreed with the HRA's goal that the Bluff Block be redeveloped first before the Jackson Block. At this time it is unknown how much longer after construction begins on the Bluff Block that construction will begin on the Jackson Block. It is possible that construction of both blocks could be done simultaneously, Q. What is the typical time frame for a redevelopment project? A. The planning process for a typical redevelopment project can take up to two years. Construction then begins and that could take two years depending on the size of the project. For a redevelopment project to work, it must not only meet community goals, but also make sense from both a market and financial perspective. Elk River's project is unique due to the complexities of developing adjacent to the Mississippi