06-01-1994 HR MIN - Laserfiche WebLink

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Housing and Redevelopment Authority Meeting Page 2 June 1, 1994 another tenant. The finished market value of the project is estimated at$275,000. • Mr. Smith explained that the existing single family home will be moved to a site in Zimmerman, but the redevelopment grant will cover site preparation costs that are unique to this site. Chair Schuldt opened the public hearing. There being no one in attendance to speak, Chair Schuldt closed the public hearing. Prior to the motion and subsequent vote, Commissioner Kropuenske stated the following clarification of the record: Duane E. Kropuenske is an officer and director at First National Bank of Elk River. Both Jerry Smith and Timothy Smith bank at First National and are customers of the bank. Commissioner Kropuenske will vote on this issue and does not see a conflict of interest here as the loan demand for projects like this in Elk River are high. COMMISSIONER TOTH MOVED TO APPROVE A REDEVELOPMENT GRANT UP TO $19,500 TO T.J. PROPERTIES TO ASSIST WITH SITE PREPARATION COSTS ASSOCIATED WITH THE CONSTRUCTION OF AN OFFICE BUILDING AT 403 MAIN STREET. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 3-0. 6. Redevelopment Agreement with T.J. Properties Bill Rubin reviewed the draft of the Redevelopment Agreement by and between the Elk River HRA and T.J. Properties. He stated that this agreement has been modeled after an agreement used by the City and the HRA for the Dennis Chuba projects at Main Street and Evans Avenue and Main Street and Freeport Avenue. • He advised the Commissioners of the following changes: a.) the commercial appraiser in the County Assessor's office has estimated the finished market value for tax purposes at$275,000; b.) T.J. Properties is a Minnesota General Partnership, not a Minnesota Corporation; c.) Mickie Smith is not a partner in T.J. Properties, and therefore,will not be executing this agreement. Bill Rubin further explained that while the agreement is with T.J. Properties, Timothy Smith and Jerry Smith would also be signing the agreement in order to personally guaranty the performance of T.J. Properties. COMMISSIONER KROPUENSKE MOVED TO APPROVE THE DEVELOPMENT AGREEMENT WITH T.J. PROPERTIES SUBJECT TO THE CHANGES NOTED BY BILL RUBIN. COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED 3-0. At this time, Commissioner Hinkle returned to the Council dais. 7. Construction Plans for Public Improvements at the former City Hall Site At this time, HRA Commissioners reviewed the construction plans for the surface improvements proposed at the former City Hall site located at US Highway 10, Main Street, and UPA Drive. These plans were prepared by Terry Maurer of MSA Consulting Engineers. Bill Rubin explained that the City Council accepted a construction bid and authorized the execution of a contract with Forest Lake Contracting, Inc., for the internal and external street improvements associated with the Elk Park Center project. Mr. Maurer is suggesting that the HRA negotiate a change order with Forest Lake Contracting for the improvements planned at