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EOty1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 8.3 <br /> Agenda Section Meeting Date Prepared by <br /> General Business October 7, 2019 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> Preliminary Development Agreement with Modern Cal Portner, City Administrator <br /> Construction of MN Reviewed by <br /> Action Requested <br /> Approve, or deny,by motion, execution of the preliminary development agreement with Modern <br /> Construction of MN. <br /> Background/Discussion <br /> At the September 2, 2019,Work Session, the City Council heard a presentation by Modern Construction <br /> on a high density,market rate,mixed-use development concept in downtown Elk River. The property up <br /> for discussion is owned by multiple entities,which includes parcel #75-405-0230 and 75-405-0235 owned <br /> by the HRA. Modern Construction of Minnesota,Inc. is owned and operated by Jesse Hartung, and is a <br /> local developer. <br /> The developer requested the council consider an option agreement for the property the city and HRA <br /> own within the project area. Council directed city staff to research other agreements that can accomplish <br /> the developer's objectives,while limiting the risk of the city. <br /> At their September 16, 2019,Work Session,it was the consensus of the council to enter into a <br /> preliminary development agreement with the developer. The agreement allows the developer to explore <br /> the idea of a multi-family, mixed-use development concept in downtown Elk River. The HRA is listed as <br /> a party to the agreement, since the HRA owns some of the property. <br /> Important components of the agreement include: <br /> Section 3 pertains to the developer's obligations which encompass all aspects of the discussion that the <br /> council discussed at their work session on the 16. <br /> Section 4 pertains to the city and the HRA's obligations to take appropriate steps to review the proposal <br /> as we would in any development scenario. <br /> Section 5 refers to contingencies subject to any request for financial assistance,project feasibility, the <br /> project is in the best interest of the city, and the ability of the city and the HRA to agree upon the terms <br /> to convey property to the developer,with the sole understanding that this agreement does not obligate <br /> the city or the HRA to sell the properties to the developer. <br /> The Elk River Vision <br /> A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By <br /> service, and community engagement that encourages and inspires prosperity INAMIRE1 <br />