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<br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />Request for Action <br /> <br /> <br />To <br />Mayor and City Council and Commissioners of the HRA <br />Item Number <br />2.0 <br />Agenda Section <br />N/A <br />Meeting Date <br />September 4, 2018 <br />Prepared by <br />Amanda Othoudt, EDD <br />Item Description <br />DT Redevelopment Project <br />Reviewed by <br />Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Discuss LHB report and discuss next steps. <br /> <br />Background/Discussion <br />The City of Elk River is exploring the potential redevelopment of several parcels in downtown Elk River <br />near the ISD #728 Building. As part of the project, the city is pursuing a redevelopment plan for the area. <br />A proposed Redevelopment TIF District consisting of 24 parcels with 8 buildings was inspected for <br />consideration. <br /> <br />At the May 7, 2018, meeting, it was the consensus of the Council to engage LHB, Inc. to survey and <br />inspect the properties to determine if the project qualified. LHB inspected the interior and exterior of the <br />buildings on June 22, 2018. <br /> <br />To qualify as a Redevelopment TIF District, 70% of the proposed district must be occupied by buildings, <br />streets, utilities, or other similar structures, and more than 50% of the buildings must be structurally <br />substandard. A building is structurally substandard if not in compliance with the building code for new <br />buildings or could be brought into compliance for more than 15% of the cost of building a new building <br />of the same type. <br /> <br />Building Code and Condition Deficiency reports for the buildings that were inspected and found to be <br />substandard are located in Appendix B of the report. Upon inspection, LHB Inc. found the following: <br /> The proposed district has a coverage calculation of 100%, exceeding the 70% requirement. <br /> 87.5% of the buildings are structurally substandard, exceeding the 50% requirement. <br /> The substandard buildings are reasonably distributed. <br /> <br />Staff is seeking direction from the Council and the HRA on the recommended next steps in the process. <br /> <br />Financial Impact <br />N/A <br /> <br />Attachments <br /> LHB Report (August 21, 2018) <br /> Map of Proposed TIF District