EDSR MEMORANDUM 07-11-1994 - Laserfiche WebLink

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EDA Agenda Memo Page 5 July 11, 1994 potential redevelopment projects in the CBD compete for a limited or 411 finite pool of funds. There is, however, a role that can be played by the City and its EDA or HRA. A proactive role is that of facilitating redevelopment. An EDA/HRA can be a conduit for redevelopment to occur. Examples include TIF grants or redevelopment grants, assembling land in anticipation of redevelopment, and finally, a willingness to absorb some redevelopment costs to ensure that investment in the CBD occurs. Another role is less proactive. It is the traditional regulatory role; that is, the traditional "police powers" of code enforcement, public safety, setbacks, and building code regulations. As the Steering Committee begins to explore Elk River's commercial sector, the writer of this memo believes that many opportunities exist for public sector participation. An opportunity exists for the City/EDA/HRA to commit itself towards absorbing certain redevelopment costs in future projects to ensure a vibrant CBD. This commitment must be long term and the financial pockets should be deep enough to ensure a long-term commitment. Of highest importance, is a recognition that public dollars that are not repaid or are left on the table as a result of a future redevelopment project • should not place a burden on the typical taxpayer. These are the challenges and the opportunities that will be discussed in greater detail at the EDA meeting. 10. MHFA Rental Rehab Program At a recent City Council meeting, a Twin Cities-based property manager introduced himself and reviewed with the Council two projects he had successfully undertaken in Minneapolis and in St. Louis Park. The individual has been working as property manager at the Lake Orono Estates apartments. He has indicated that this complex is no longer in receivership, and, the new owners are anxious to begin work on rehabing the apartments. A potential source of financing for a project like this is through the Minnesota Housing Finance Agency (MHFA). MHFA offers a Home Rental Rehab Program which makes federal dollars, up to $14,000 per unit, available to apartment owners desiring assistance in rehabing their projects. This program covers 75 percent of the rehab costs. The balance of the costs are funded through owner's equity and/or other funds. The MHFA funds are typically provided as a zero percent loan • that is forgiven after five years. As a condition of this program, there