11-25-2002 HR MIN - Laserfiche WebLink

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HRA Minutes Page 2 November 25, 2002 • Chair Toth opened the public hearing to consider the adoption of the City of Elk River Business Subsidies Policy.There being no one for or against the matter, Chair Toth closed the public hearing. Director of Economic Development Catherine Mehelich indicated that the EDA recently adopted the policy following its public hearing on November 12. She indicated that the Council would be holding a public hearing for the same purpose later this evening. Commissioner Wilson suggested that the phrase "a minimum amount of'be deleted from the third paragraph of section I. He indicated that he felt the City could be sending a mixed message of discouraging business subsidies instead of encouraging subsidies. Following discussion of this issue,it was the consensus of the HRA to delete the phrase if the City Council concurs. COMMISSIONER THOMPSON MOVED TO ADOPT THE ELK RIVER BUSINESS SUBSIDIES POLICY WITH THE MINOR AMENDMENT OF DELETING THE WORDS "A MINIMUM AMOUNT OF"FROM SECTION I SUBJECT TO APPROVAL OF THE COUNCIL. COMMISSIONER WILSON SECONDED THE MOTION.THE MOTION CARRIED 5-0. 7. Downtown Revitalization Project 7.1. Consider Proposal for Property Redevelopment Eligibility Assessment Services Catherine Mehelich updated the HRA on activities that staff has been working on with MetroPlains during the last month. She noted that MetroPlains has selected JLG Architects to work on the Elk River project. She further noted that MetroPlains has selected Ken Brooks,KJB Real Estate Services to contact property owners who may be part of the development concept area. Catherine stated that consideration of a TIF district to fund a portion of the redevelopment costs has been previously discussed by the HRA. She indicated that staff has distributed request for proposals to three engineering firms for the completion of the property assessment. She noted that the property assessment is necessary to evaluate the physical condition of the buildings located in the TIF district. Catherine stated that staff received proposals from S.E.H. and L.H.B. She indicated that after review of the proposals, the City's TIF attorney,Jim O'Meara is recommending that the HRA enter into an agreement with S.E.H. Catherine noted that the cost for the TIF assessment would be paid by establishing a"future TIF district" account and interfund loan with the HRA. She indicated that the interfund loan would be repaid by future TIF revenues generated from the new district. She also stated that if a TIF district is ultimately not created or the project does not proceed, the cost would become an expense of the HRA. Catherine reviewed the area to be inspected by the engineering firm that the City hires. Discussion was held regarding the possibility of expanding the district to include the two buildings located on Main Street,west of Lowell Avenue. •