5. HRSR 02-06-2006 - Laserfiche WebLink

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City of E ~o~o~~ ant ion ~~ • ~~ JANUARY 2006 ~~P ~ i Enhanang Downtoum Elk River's Role vv - - - .- As a Vital Retail, Commeraal and Residential Area. Q. Why do we have to pursue downtown revitalization? A. The downtown riverfront is very important to Elk River. The City has identified its long-term vitality as a community goal. For more than 30 years, studies have emphasized the need to better utilize the river- front, capitalize on the traditional character of downtown, and ensure safe pedestrian and vehicle movement. Investment in downtown has stagnated and the riverfront is underutilized. The revitalization will enhance downtown Elk River's role as a retail, commercial, and resi- dential area and promote investment in the downtown business dis- trict. The City has partnered with MetroPlains Development to make this happen. Q. What has happened to date in the Downtown Revitalization Project? A. The King Avenue parking lot was completed in August of 2005, adding 77 parking spots for downtown employees. MetroPlains paid the cost of the new parking lot. The former Municipal Utilities building, Nadeau's dry cleaners, U.S. Bank and The Jungle buildings have all been removed and received environ- mental clearance. New parking regulations are being enforced and the City has approved a traffic f construction. (l. Why has the construction of the project stopped and when is it expected to resume again? A. Construction is ready to go, pending the refinement of language in the development agreement regarding MetroPlains' financing. MetroPlains is also completing its presale requirements. Both of these activities are winding up and construction of The Bluffs of Elk River is expected to resume in late winter or early spring. The con- struction of Jackson Place will then follow by the summer. Q. Exactly how will this project be funded and will it impact my property taxes? A. The approximately $25 million dollar project will primarily be funded by MetroPlains. In addition, Tax Increment Financing (TIF) will be used to offset the extraordinary site costs of the project such as prop- erty acquisition, demolition, site work, and environmental clearances. Under TIF, property tax revenue equivalent to what the current proper- ty generates continues to go to all taxing jurisdictions. A portion of the tax revenue that results from the increased value of the new devel- opment, also called the "tax increment," goes to pay the extraordinary site costs. Once the site costs have been paid, the tax increment goes to the taxing jurisdictions. Q. What are the details of the Jackson Place and The Bluffs of Elk River developments? is located on the northeast corner of Jackson Avenue and Main Street. It includes approximately 11,000 square feet of first floor commercial space along Main Street and Jackson Avenue, 32 rental housing units on the upper two floors, and underground park- ingfor commercial employees and rental housing tenants. The prop- erty is currently aCity-owned parking lot. The Bluffs of Elk River is located on the southwest corner of Main Street and County Road 42. It includes about 11,000 square feet of commercial space on the first floor along Main Street, 67 for-sale res- idential condominiums on the upper three floors, underground park- ing for commercial employees and homeowners, and a plaza on the corner of Main Street and County Road 42. The site used to be occu- pied by Natleau's dry cleaners, U.S. Bank, and The Jungle. Q. What types of businesses will be locating within the new developments and how can 1 find out more about the availability of housing and retail units in the new developments? A. MetroPlains is talking with several interested businesses to locate in the development. However, it is not expected that any commitments will be made until the project is near completion. (continued on next page) Q. Why does the development agreement language have to be refined? A. Rather than obtaining a Tax Increment Financing (TIF) note after con- struction is completed, MetroPlains has elected to obtain and sell their TIF note upfront to investors. A TIF note defines the amount of TIF the developer will receive as reimbursement for eligible site costs. This method of financing will not impact the cost of the project to the City or to taxpayers but does require revised language in the develop- ment agreement. Q. How many units have to be pre-sold before construction can resume? A. MetroPlains needs to have purchase agree- ments for at least 23 condominium units at The Bluffs of Elk River before it can close the construc- tion financing. MetroPlains reached this require- ment in January 2006 and is proceeding toward the closing. This' Q ~A newsletter responds to some o f the recent questions -about Elk River's - .downtown revitalization and redevelopment.:. low plan for during A. Jackson Place