08-12-1985 CC MIN - Laserfiche WebLink

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., City Council Minutes August 12, 1985 Page Two to have the remainder seeded by the contracteD. Mr. Hals stated that he would follow up on this item with MN/Dot. 4. Consideration of Proposal for Downtown Redevelopment The City Administrator noted that on Tuesday of the past week, the City Staff was presented with a development proposal for a portion of downtown Elk River. He explained the proposal comprehended a building of approximately 10,000 square feet located at the corner of King and Main Street. The Administrator indicated that the development group proposing the project requested to present their proposal at this evening's Council Meeting. Mayor Hinkle recognized Mr. Mike Leary who stated that his firm was hired by the Downtown Development Group to review development for downtown. He ex- plained that projects in other cities were surveyed including Red Wing and Granite Falls. Mr. Leary reviewed the proposed project for Elk River and pointed out that it would address the corner of King and Main with a three story structure with the partial closing of King. He pointed out the project would involve the demolition of Marty's Auto, the Lundberg building and the Public Utilities building. He explained the City is being asked to become involved in the project through the use of tax increment financing. Mr. Cliff Lundberg reviewed the issue of the partial closing of King and noted that the proposal would be to maintain two-way traffic to the parking lot. He added that his group is looking for general concept approval from the Council including the vacating of the portion of King and also the use of tax increment financing. Mr. Lundberg requested the City to authorize the necessary studies to accomplish the tax increment financing for the project. Mr. Rob VanVaulkenberg commented that the group is currently under a time pressure regarding the use of Marty's Auto since the building is currently owned by the First National Bank. The City Administrator briefly reviewed the feasibility study which would be required for the project and pointed out that the feasibility study would essentially focus on the financial feasibility of the project to determine whether or not there were adequate tax increments to fund all the various elements of the project. He recommended the feasibility study be paid for entirely by the group proposing the project. Mr. Cliff Lundberg requested that the feasibility study be paid fifty percent (50%) by the City and fifty percent (50%) by the Developer's Group. The Council continued to review the proposal for the project proposed for King and Main. COUNCILMEMBER WILLIAMS MOVED TO AUTHORIZE THE CITY STAFF TO PROCEED WITH THE REQUIRED FEASIBILITY STUDY FOR THE PROJECT PROPOSED FOR KING AND MAIN AND TO AUTHORIZE THE CITY TO PAY FIFTY PERCENT (50%) OF THE COST OF THE STUDY WITH THE DEVELOPER'S GROUP PAYING THE REMAINDER, AND TO AUTHORIZE THE STAFF TO NEGOTIATE WITH MR. ZACK JOHNSON TO PROVIDE THE REQUIRED SERVICES TO COMPLETE THE.FEASIBILITY STUDY. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0.