03-06-2006 HRA - Laserfiche WebLink

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Housing & Redevelopment Authority March 6, 2006 Page 2 Vern Hanson, MetroPlains — explained that the language amendments to the Development Agreement had to do with the multi -tiered financing for this project. Mr. Hanson indicated that MetroPlains is currently in the process of reviewing the loan documents and once that is completed, they will move into the loan closing. He stated that they have executed purchase agreements on 32 residential units and additional agreements are in the process. Mr. Hanson also indicated that MetroPlains has had serious discussions with many potential commercial occupants but is not at liberty to share details. Commissioner Toth questioned if the presale requirement on the commercial units has been met. Mr. Hanson stated that yes, MetroPlains purchased the commercial portion of the project. Commissioner Toth questioned when MetroPlains anticipates closing on the financing and the when construction will commence. Mr. Hanson indicated that construction on the Bluff Block project should begin sometime between March 13 and April 15 and construction on the Jackson Block may begin about thirty to ninety days after. Commissioner Motin questioned how long after construction begins will the units be ready for occupancy. Mr. Hanson indicated that it would be no more than 12 months. Ms. Mehelich stated that the next Downtown Q&A will address the financing closing issues, the development agreement, and scheduled construction dates and may be distributed in April. Commissioner Toth questioned how the traffic will be handled with both the two MetroPlains projects and The Bank of Elk River project taking place consecutively. Ms. Mehelich indicated that staff and the City Council have reviewed the construction staging plans and that Fire Chief Bruce West has been designated as the city's public safety contact for the downtown projects and he will make modifications to the safety and staging plans as necessary. Assistant Director of Economic Development Heidi Steinmetz stated that she, Police Chief Jeff Beahen and Parks and Recreation Director Bill Maertz will be attending the Rivers Edge Business Association meeting on Wednesday to discuss the new downtown park and the public safety issues regarding the removal of parking spaces located within the future entrance to the park. Discuss Draft Amendments to Micro Loan Fund Polio Director of Economic Development Catherine Mehelich indicated that the EDA is considering amendments to its Micro Loan Fund Policy which provides loans for manufacturing expansion and for the rehabilitation of downtown commercial buildings. Ms. Mehelich indicated that the program has been utilized only twice for commercial rehabilitation in the last ten years. She explained that staff has not been heavily marketing the program because of the downtown project; not knowing which properties would be affected. She stated that now that the downtown construction is set to begin, it would a good time for the policy to be revised and for staff to begin marketing the program to the downtown businesses. Ms. Mehelich reviewed the proposed amendments.