Laserfiche WebLink
Discuss Status of Bowling Alley Property <br />June 2, 2008 HRA Meeting <br />Page 2 of 2 <br />Zonin <br />Attached is a zoning map of the subject area. The subject parcel is zoned C3-Highway <br />Commercial, as is the property to the north and west. <br />Environmental Regulations <br />The attached memo from Environmental Director Rebecca Haug summarizes the shoreline <br />setback and environmental regulations that affect development of the property. <br />Adjacent Property Ownership <br />The City of Elk River owns approximately 20-acre parcel directly north of the bowling alley. <br />The properties immediately west of the bowling alley have also marketed for sale over the <br />past year, and include: <br />1.7 acres Former D & S Sales building &single-family residence <br />2.48 acres Elk Motel (16-units) <br />Purchase Price <br />The property owner, Mr. George Larson, is asking a purchase price of $2,250,000 (roughly <br />$12 per square foot) for the sale of the 4.3 acres. Mr. Larson indicated to staff that over the <br />past year he has received a good number of inquiries on the property for proposed uses <br />ranging from bar/restaurant to residential condos. In addition, city staff has responded to a <br />number of inquiries over the past year related to questions about shoreline setback and DNR <br />regulations, permitted uses, and availability of financing assistance for redevelopment or <br />rehabilitation. <br />Requested Direction <br />Staff requests the HRA's discussion and direction regarding what role, if any, the HRA <br />desires to have in the redevelopment of the property. <br />Issues for Discussion <br />The following issues should be considered in the HRA's discussion: <br />o MN Statutes require the HRA complete a redevelopment plan which outlines the <br />HRA's short and long term intentions for the property (similar to the <br />redevelopment plan prior to the HRA's purchase of the Houlton buildings), <br />prior to the HRA's ability to purchase property. <br />o It is unknown whether the parcels would qualify as "substandard" under Tax <br />Increment Finance statutes. This would require further evaluation by a 3`d party <br />engineering firm. <br />S:\EDA\LAND\Bowling Alley\6.2.08 hra memo.doc <br />