06-06-2006 HRA - Laserfiche WebLink

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Housing & Redevelopment Authority Page 2 June 26, 2006 ( Ms. Mehelich explained the four gap levels on the spreadsheet in the staff report. Commissioner Wilson questioned why the land use for Area B is high density housing and not office or retail space. He noted Area B (Area 2 on the Gap Analysis sheet) has the highest acquisition estimate but the smallest gap. Ms. Steinmetz stated this is a very preliminary concept drafted in order for staff to generate some financial feasibility models as a base starting point for the Commission to begin working with. She stated concepts can be changed around in order to plug in different land uses and financial modeling scenarios to make each area more feasible. Mr. Clark stated this first concept is a template and staff can change the land uses around to determine value and to different financial scenarios in order to make each area more marketable. Mr. Clark stated Area B has the smallest gap because condo projects tend to have a high value on a small section of land. Commissioner Kuester questioned if road configurations were considered and if they would affect the financial feasibility. She questioned if the estimated land costs were high due to eminent domain. Ms. Steinmetz stated road configurations would be determined during the land use concept stage of the planning process. Mr. Clark stated approximately 20 percent of the buildings in each area could probably be f' rehabilitated rather than redeveloped but the issue is how to attract the private development market and let them know the city is committed to completing a whole project rather than piecemealing it. He stated this is a policy decision the city needs to make. Commissioner Kuester expressed concerns with the new eminent domain laws and questioned the city's ability to use it. Mr. Clark stated this is not an economic development but rather a redevelopment issue and the question is if the city can meet the redevelopment test of the eminent domain law. He stated the most likely scenario to happen is that private development companies will purchase the land and then come back to the city requesting TIF funds. Commissioner Motin stated concerns with redevelopment near Highway 10 due to future Mn/DOT redesign of TH 10 and concerns with eminent domain laws. Mr. Clark stated Area 4 near the railroad tracks is in the most need of redevelopment. He questioned how long the city should wait for TH 10 to be redesigned when no one knows when or if it will really happen. He reiterated that if private development companies would go out and buy these properties; thereby the city would not need to use eminent domain. Commissioner Motin questioned if an area would be redeveloped if a developer can only acquire 90 percent of the homes in a specific area. Mr. Clark stated most likely not. Ms. Steinmetz stated these financial modeling templates are guiding documents for future land use. She suggested more financial modeling with Area 3.