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9.0.-9.A. EDSR 06-10-1996
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9.0.-9.A. EDSR 06-10-1996
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City Government
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EDSR
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6/10/1996
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• I have visited with the president of this company a number of times <br /> and we have agreed to have a meeting toward the end of July to <br /> discuss the possibility of this company coming to Elk River toward the <br /> end of the year. <br /> D. KING AND MAIN REDEVELOPMENT <br /> The recent Star News article on King and Main is an accurate <br /> summary of the project. The goal of the city is to have Mr. Chuba do <br /> the redevelopment project in 1996, but if the right number and type of <br /> future owners of the building space cannot be lined up, then this <br /> construction project may not happen until July 1997. The TIF project <br /> works financially either way, but it is more beneficial if the project is <br /> substantially completed in 1996. The closing date on the properties is <br /> scheduled for June 21, 1996. The City Council is scheduled to have a <br /> public hearing on June 17, 1996 to receive input and hopefully <br /> authorize the early acquisition of this property by the HRA prior to the <br /> redevelopment plan being in place. There are some environmental <br /> issues that need to be addressed, but these are not substantial and <br /> should be able to be handled from a financial point of view. This <br /> environmental information was discovered in the phase one audit that <br /> . the city authorized to have completed by B. A. Leisch and Associates. <br /> The finance department is working on the fiscal analysis of this <br /> project, as we will have to borrow funds until the project property is <br /> resold and TIF revenues are generated to pay off the debt. <br /> All in all, this project is moving forward with the guidance from our <br /> city attorney, with the cooperation of the future developer, and the <br /> help of the real estate agent representing the three property owners. <br /> E. GAGNE PROPERTY AND PROSPECTS <br /> Per direction from the EDA, the city attorney is working with Mr. <br /> Gagne's attorney in finalizing the purchase option/agreement for his <br /> 19.6 acres directly east of the Government Center. The city would only <br /> pursue this purchase if it had two prospects (or one large one) <br /> committed to developing in this area. If only the smaller prospect that <br /> needs 3 1/2 acres is committed to this area, then we may work with <br /> Mr. Gagne for him to directly sell this property to the prospect and the <br /> city would be involved in a TIF project by way of extending the road, <br /> sewer and water, and writing down the land. Ultimately, the city <br /> would then not get involved in the land transaction. Again, the key <br /> • player for the city to be involved in purchasing the land from Mr. <br /> Gagne is the prospect that needs 9 acres. The option with Mr. Gagne <br />
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