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Housing & Redevelopment Authority December 4, 2006 Page 2 park is continuing, as is construction on the necessary underground work for the Jackson parking ramp. She noted that the Bank of Elk River parking lot paving is complete. Ms. Mehelich explained that staff is discussing snow removal and storage with the downtown contractors. She stated that staff will also be discussing this issue at the next River's Edge meeting. Ms. Mehelich indicated that staff has received two inquiries on the new downtown loan program. Assistant Director of Economic Development Heidi Steinmetz distributed the downtown revitalization vision publication. She stated that the purpose of the vision piece is to show the public a vision of what the downtown revitalization project will look like once it's completed. Ms. Steinmetz indicated that the vision publication will be distributed in the Star News and was also distributed to downtown businesses for distribution during the Holiday Open House. Commissioner Motin questioned if the crane for the Jackson Block project will be contained within the building so it does not interfere with traffic flow on Jackson. Community Development Director Scott Clark indicated that staff has been advised that Flannery Construction may request that Jackson Avenue go back to the original requested configuration design. Chair Wilson questioned how long the original configuration would be maintained. Mr. Clark stated that Flannery will be requesting the road be rerouted for four weeks. 6. Consider_Api)roval of Purchase Areement Ms. Mehelich indicated that staff is requesting final HRA consideration on the acquisition of the properties located at 716 and 720 Main Street from Houlton Investment Company. Ms. Mehelich outlined the terms of the purchase agreement as follows: ■ Purchase Price: $720,000 with a down payment of $216,000 ■ 5-year contract for deed at 6% interest, semi annual payments with prepayment being allowed without penalty ■ Closing date of December 22, 2006 ■ HRA to assume the lease with OReilly Automotive at 720 Main Street and the lease established with First National Financial Services at 716 Main Street ■ Condemnation and relocation are specifically not being authorized ■ Provides for the amendment of the purchase agreement, if necessary, following receipt of completed survey and title review • Rather than prorating rents and real estate taxes to the date of closing, the agreement provides for the sake of simplicity to make the proration date for rent and real estate taxes January 1, 2007 Chair Wilson questioned the lease conditions with OReilly Automotive. Ms. Mehelich indicated that there has been no change in the structure of the payments. She noted that staff understands from the corporate offices that they are in the process of looking for a free standing location that better fits their corporate business model. Ms. Mehelich explained that the city's condemnation and relocation attorney suggested that wording regarding condemnation and relocation be included as part of the purchase agreement so there is no confusion in the future with the seller.