10-03-1983 CC MIN - Laserfiche WebLink

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City Council Minutes October 3, 1983 Page Four Councilmember Schuldt indicated that the consideration of a reclassification of highway property would not affect the specific property in question, as that specific property does not have highway frontage. Further discussion was carried on regarding the consideration of a reclassification zone for Highway #10 and Highway #169. COUNCILMEMBER SCHULDT MOVED TO DENY AN AMENDMENT TO THE CITY'S ZONING ORDINANCE TO PERMIT COMMERCIAL USES TO BE CREATED AS CONDITIONAL USES IN AN I-I ZONE. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. A joint work session between the Planning Commission and the City Council was set for Tuesday, October 18th, 1983 at 7:30 p.m. to discuss the possibility of a reclassification zone for Highway Commercial Industrial property. 8. Authorization of Preliminary Tax Increment Feasibility Study Mayor Hinkle called to order a joint meeting of the City Council and the Housing and Redevelopment Authority. Mayor Hinkle indicated that over the past several months, the City Council, the Housing and Redevelopment Authority and the Downtown Development Corporation have been involved in discussions with the Kraus Anderson Development Corporation regard- ing redevelopment of the downtown area. Mayor Hinkle indicated that the Kraus Development Corporation has proposed a development plan for downtown which includes two phases with new buildings constructed in each phase. Mayor Hinkle indicated that Phase 1 is a 30,000 square foot building with office space upstairs and retail space in the lower level and a new parking area, and that Phase 2 at some point in the future would include a 16,000 square foot retail facility, plus additional parking. The City Administrator indicated that the Financial Advisory Committee of the Housing and Redevelopment Authority has reviewed the concept plans and, in their :opinion, Phase 1 of the proposed redevelopment project appears to be a feasible project. The City Administrator indicated that the Financial Advisory Committee recommends that the City Council and the HRA consider payment of one-half of the necessary fees for completing the preliminary tax increment feasibility study, and further indicated that the Downtown Redevelopment Corporation has agreed to commit the other half of the funds for the preliminary tax increment feasi- bility study. Discussion was carried on between the City Council and the HRA regarding the feasibility of Phase 1 and Phase 2. Mr. Don Schumacher, Chairman of the HRA, indicated that Phase 2 was not a viable project at this time, and further in- dicated that Kraus Anderson Development Corporation also believes that Phase 2 is not a viable project at this time. Mr. Rob VanValkenburg, representative of the Downtown Redevelopment Corporation indicated that they did not believe there was a demand for Phase 2 at this time. Mr. Don Schumacher indicated that in the preliminary tax increment feasibility study, Mr. Zack Johnson, assisted by the City's attorney, Dave Sellergren, and the City's financial and bond consulting firm would determine how much of the project would be feasible; that is, should the Elk River Municipal Utilities