09-22-2003 HR MIN - Laserfiche WebLink

Home Browse Search

HRA Minutes Page 4 September 22,2003 • Commissioner Lieser stated that she would be interested in a market rate analysis included with the median value. 6. Downtown Revitalization Project Update Ms.Mehelich provided an update on the Downtown Revitalization Project. She stated that a draft development agreement should be ready for the HRA's review and consideration at a regular meeting within the next 30 to 60 days. Ms.Mehelich explained that the financial feasibility of the project depends on the City and developer's ability to receive financial assistance from a variety of resources,and in July the HRA and City Council authorized MetroPlains to submit a financing application to the MN Housing Finance Agency for the Jackson Block project. Notification of financing award from MHFA is anticipated the end of October. In addition to the MHFA application,the financial plan prepared by MetroPlains is dependent upon funds from the Small Cities Development Program(SCDP),administered by the MN Department of Employment and Economic Development(DEED). These grants will be contingent upon final project approval and does not commit the City or HRA to final project approval. She noted that a larger portion of the City's SCDP application would include a request for grant funds to be used for commercial and rental property rehabilitation within the downtown area. The grant funds may be provided to property owners as a deferred low S interest loan that could be used to leverage the City's existing Micro Loan Redevelopment Financing Program and conventional financing. The rehabilitation of adjacent properties supports the City's revitalization objective to recognize buildings that have potential for rehabilitation. Rehabilitation must include building,fire and energy efficiency code improvements,and can include façade improvements. A portion of the SCDP application will include a request for gap financing of the Jackson Block project. Commissioner Lieser asked for clarification on the"gap", since she thought that the Jackson Block Development did not have a gap. Ms.Mehelich explained that the financial plan for the Jackson Block has always included funds from the SCDP grant and that the largest share of the grant request will be for rehabilitation downtown. Commissioner Motin expressed his concern that he cannot support the rehabilitation and raising the value of properties such as the Main Street block in the vicinity of the meat market,and the cinema block east to the proposed new project site,if these areas have potential for future redevelopment. Commissioner Motin asked if the grant request would be specific as to what the dollars are expended. Ms.Mehelich stated yes,that upon completion of eligible expenditures,the City would then request funds for repayment of the work. Commissioner Lieser asked if the Jackson Block project financing will help pay for the Bluff Block project. Ms.Mehelich stated yes,that this will be detailed in the developer agreement. COMMISSIONER LEISER MOVED TO RECOMMEND THAT THE CITY • COUNCIL AUTHRIZE STAFF TO PROCEED IN SUBMITTING A SMALL CITIES DEVELOPMENT PROGRAM APPLICATION TO THE MINNESOTA