7. HRSR 06-26-2006 - Laserfiche WebLink

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Consider Acquisition of 716 & 720 Main Street June 26, 2006 Special HRA Meeting Page 3 of 3 As part of a overall strategy, these properties are the best location for additional parking since it is fairly central in the core downtown area, located immediately adjacent to the new King Ave parking lot and provides for greater flexibility in designing a future parking ramp structure. In addition previous downtown planning studies have indicated this area as suitable for public parking and a ramp (1986 Governor's Design Team). The buildings were included in the 2002 Historic Contexts Study which concluded that that the subject buildings have "no remaining historic integrity due to modernization." Timing of Acquisition The purchase of the subject property is more advantages now for the following reasons: • This is anon-leveraged sale. Typically acquisitions being conducted by the city through redevelopment can range 30-70 % more than market value, depending on the situation (e.g. recent building improvements, unmotivated seller). • Avoids potential future conflicts of eminent domain and need for a public purpose policy in place. • Avoids future cost of relocarion. Typically relocation of established businesses can range $30,000-$70,000 per business depending on the type and unique characteristics of the business. Estimated Project Costs Acquisition: $760,000 Demolition: $ 40,000 (not including undetermined environmental issues) Site Improvements: 45 000 (to construct the 21 parking stalls) Total Estimate $845,000 Options for Discussion • Purchase the buildings on a contract for deed and lease out for a particular period of time. • Purchase the buildings; remove and improve for immediate parking addition of approximately 21 stalls. • Do nothing. Recommendation Staff recommends the HRA consider the acquisition of the properties described as 716 and 720 Main Street. If the HRA wishes to purchase the properties, direction should be given to staff on negotiation parameters and authorizing completion of an appraisal. Upon the HRA's direction to proceed staff will present options for financing the project at next month's HRA meeting. S:\Downtown Revitalization\Memos\2006\6.26.06 Houlton buildings.doc