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Joint HRA & City Council Meeting 09-04-2018
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09-04-2018 SPECIAL JOINT W/HRA
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Joint HRA & City Council Meeting 09-04-2018
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Request for Action <br />To ItemNumber <br />Mayor andCityCouncil andCommissionersoftheHRA 2.0 <br />Agenda Section Meeting Date Preparedby <br />N/A September 4, 2018 Amanda Othoudt, EDD <br />ItemDescription Reviewedby <br />DTRedevelopment Project CalPortner, CityAdministrator <br />Reviewedby <br />ActionRequested <br />Discuss LHBreportanddiscuss nextsteps. <br />Background/Discussion <br />TheCity ofElkRiver is exploringthe potential redevelopment of severalparcels indowntownElk River <br />nearthe ISD #728 Building. Aspart oftheproject, thecityispursuing aredevelopment planforthearea. <br />A proposed Redevelopment TIFDistrictconsisting of 24 parcels with 8 buildings was inspected for <br />consideration. <br />Atthe May7, 2018, meeting, itwasthe consensusofthe Council to engage LHB, Inc. tosurveyand <br />inspect theproperties todetermine iftheproject qualified. LHBinspectedtheinteriorandexterior ofthe <br />buildingson June 22, 2018. <br />Toqualify asaRedevelopment TIF District, 70% ofthe proposed district mustbeoccupied bybuildings, <br />streets, utilities, orothersimilar structures, and morethan 50% ofthebuildingsmust bestructurally <br />substandard. Abuildingis structurallysubstandardif notin compliance withthebuildingcode fornew <br />buildings orcould bebrought intocompliance for more than15% ofthecostofbuilding anewbuilding <br />ofthesametype. <br />Building Code andConditionDeficiency reportsforthebuildingsthatwereinspected andfoundtobe <br />substandardare locatedin AppendixBofthereport. Uponinspection, LHBInc. found thefollowing: <br />Theproposed districthasacoverage calculation of100%, exceeding the70% requirement. <br />87.5% ofthebuildings arestructurallysubstandard, exceeding the50% requirement. <br />Thesubstandard buildingsarereasonably distributed. <br />Staffisseeking directionfromtheCouncil andtheHRAonthe recommendednextsteps in theprocess. <br />FinancialImpact <br />N/A <br />Attachments <br />LHB Report (August21, 2018) <br />MapofProposed TIFDistrict <br />The ElkRiver Vision <br />Awelcomingcommunity withrevolutionary andspirited resourcefulness, exceptional <br />service, andcommunity engagement thatencourages andinspires prosperity
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