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Housing & Redevelopment Authority November 6, 2006 Page 3 1. The land in the redevelopment area would not be made available for redevelopment without the financial aid sought. 2. The redevelopment plan for the redevelopment area in the City will afford maximum opportunity consistent with the needs of the locality as a whole for the redevelopment of the area by private enterprise. 3. The redevelopment plan conforms to the general plan for development of the City as a whole. Mr. Clark stated that after the HRA acts on the plan, it will be forwarded to the Planning Commission and then to the City Council. Commissioner Toth asked if formally adopting a redevelopment plan was something new. Ms. Mehelich stated that a TIF plan was adopted prior to the King and Main redevelopment project. Mr. Clark explained that a TIF plan is sometimes accepted as a redevelopment plan. Commissioner Motin asked why the downtown area north of Highway 10 was not included in either Phase III or as a Phase IV. Mr. Clark explained that once the plan is formalized, Phase III goes away, and that the boundaries could be extended to include this area. Commissioner Motin asked how property owners receive notice of the public hearings. Mr. Clark stated that a formal legal notice is published in the Star News. Commissioner Toth stated that there are two homes for sale at 4th Street and Railroad Drive. He asked if they should be looking at extending the Phase III boundary to this area. Commissioner Motin stated that he was comfortable with extending the area west of Freeport/Gates up to School Street, and over to Jackson Avenue. Ms. Steinmetz stated that the Task Force will also be reviewing the boundary and may expand it. Commissioner Kuester asked if it was likely the study would cause anxiety for the homeowners. Ms. Mehelich suggested that the Star News could perhaps put something in paper to explain what is going on with the study. Mr. Clark noted that no action will be taken in the Phase III area and that the area was included simply to recognize that discussions have included this area. Commissioner Lieser stated that if no map is published with the hearing notice, the study should cause little anxiety. MOTION BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER MOTIN TO RECOMMEND APPROVAL OF THE REDEVELOPMENT PLAN FOR DOWNTOWN ELK RIVER REDEVELOPMENT PROJECT, DATED NOVEMBER 1, 2006, WITH THE EXPANSION OF THE PHASE III AREA TO INCLUDE THE AREA WEST OF FREEPORT/GATES UP TO SCHOOL STREET, AND OVER TO JACKSON AVENUE. MOTION CARRIED 5-0. 7 Other Business Ms. Mehelich stated that a purchase agreement and a contract for deed for the Houlton buildings have been negotiated and that this issue will be presented to the HRA in its final form at the December 4th meeting.