3.0 HRSR 04-07-2008 - Laserfiche WebLink

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IJIk River Housing & Redevelopment Authority Minutes Page 2 llcccmber 3, 2007 Consider Lease Agreement with Elk River Area Arts Alliance for 716 Main Street Ms. Mehelich explained that the lease agreement for the use of the 716 Main Street building has been reviewed and generally accepted by Patrick Grace, Executive Director of the Elk River Area Arts Alliance (ERAAA), subject to approval by its board of directors. She noted that the Arts Alliance has requested that the lease term start December 15, 2007, so that they may begin making some improvements in the building. She requested that the HRA accept and approve the lease agreement as proposed. Commissioner Motin stated that the lease term was incorrectly stated in the memo to the HRA as ending in 2010 and should be 2009. Chair Wilson asked how much the taxes were on the 716 Main Street property. Ms. Mehelich stated the taxes were $8,000 in 2007, and that there will be no tax in 2008, since the property is now tax exempt. Commissioner Toth stated that there is a discrepancy in the rent and asked if it was $1.00 a year or $1.00 for the term of the lease. Ms. Mehelich stated that it is $1.00 for the term of the lease to keep it simple. Commissioner Kuester asked if the HRA was responsible for the taxes for the entire 2007 year. Ms. Mehelich stated she would check to see how the agreement was negotiated with the Houltons. Commissioner Motin stated that he continues to have concerns with the city leasing property for $1.00, but that in this situation, they have no other use for the property at this time. MOTION BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER KUESTER TO MOVE APPROVAL OF THE LEASE AGREEMENT WITH THE ELK RIVER AREA ARTS ALLIANCE AS DISCUSSED. MOTION CARRIED 4-0. Discuss HRA Goals and Projects for 2008 Ms. Mehelich reviewed the proposed list of goals and projects for 2007 for the HRA as listed in the staff report dated December 3, 2007. Commissioner Kuester asked when the geometric study is expected to be completed. Commissioner Motin stated that it will be completed by June or July of 2008. Discussion followed regarding the housing study, and housing redevelopment and rehabilitation programs. Ms. Mehelich provided an explanation of how the Small Cites Grant program works and the fact that it is very competitive. She noted that a portion of funding was provided for the Jackson Place project, and that there are income eligibility standards which need to be met. She explained that 70 - 100 applications are received by the State and the program funds approximately 40 of them. Applications are made annually in October with funding received in March of the following year. Ms. Mehelich stated that she felt this program is a good tool for the HRA to pursue. Chair Wilson felt that this topic warranted a workshop session. It was the consensus of the HRA to preliminarily accept the list of goals and projects as proposed for further discussion at a future workshop session.