10-02-2006 HRA - Laserfiche WebLink

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Housing & Redevelopment Authority October 2, 2006 Page 2 Ms. Mehelich stated the Council has directed staff to complete a parking analysis and to provide a cost and design analysis for a parking ramp. She further stated the Council directed staff to draft a micro loan or grant policy for downtown businesses that are struggling during the construction period. 6. Consider Directinv Staff to Proceed with the Agluisition of Properties Described as 716 and 720 Main Street Ms. Mehelich stated staff has been working on a purchase agreement with Houlton Investment Company for the purchase of the properties located at 716 and 720 Main Street. She stated the seller is in general agreement with the terms of the purchase agreement and they would like to close by December 22, 2006. She stated that according to state statute, prior to the HRA acquiring these properties, they must have a redevelopment plan approved by the City Council. Chair Wilson expressed concern with the timing of purchasing these properties and the Council's request for the parking analysis. He stated he doesn't want the ERA to be at odds with the Council by purchasing these properties prematurely. Mr. Clark stated the parking analysis will focus mostly on short-term parking issues during the construction period. He stated the city won't know the long-term parking issues until construction is completed downtown and there is full lease out of the buildings. He stated a third phase in the longer -term future of parking issues will be further downtown redevelopment. Mr. Clark stated the HRA should view the purchasing of these properties as an investment that will be utilized in 5-10 years possibly as a parking ramp. He stated if the HRA were to wait, they may have to use eminent domain to acquire them in the future which would cost substantially more money. Commissioner Motin stated he believes Council is comfortable with the idea of acquiring these properties. He stated even if a parking ramp is needed now, it may not be viable because of the existing meat market. He stated the city most likely wouldn't want to use the new eminent domain laws. Commissioner Motin questioned if any inspections have been completed on these properties. Ms. Mehelich stated an environmental inspection has not been completed. She stated it is possible there may be asbestos in the buildings due to the year they were built but there is no conclusive evidence at this time. She stated the building official will complete an inspection of the buildings. She stated the purchase agreement is drafted with an "as is" clause on the buildings. Mr. Clark stated if the HRA purchases these buildings they will need to decide what to do with them. He reviewed a few possible options below. ■ Let the current lease with existing tenant expire and then tear down the buildings ■ Leave the buildings up and lease them out Chair Wilson stated he is unsure how much the city wants to be in the leasing/building management business.