06-02-2008 HRA MIN - Laserfiche WebLink

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Housing & Redevelopment Authority Page 2 June 2, 2008 complete and the units will be sold through the bank. A grand opening/open house is scheduled for June 19~. There are no new leads for the commercial space at this time. Jackson Place -The apartments have been filled. No new leads on the commercial space. Commissioner Toth asked what status was of the drq cleaning facility. Ms. Mehelich stated .that the business is moved in and operating. 716 and 720 Main Street Buildings -The Arts Alliance is utilizing the space at 716 Main Street. They have an event scheduled this week, and the Riverfront Concert series will be starting soon. Staff is working with a client who is interested in the former O'Reilly/Bumper-to-Bumper space (720 Main Street). She noted that the building is in rough condition and there are items that need to be addressed such as the flooring and bathroom facilities. She discussed possible enhancements to the exterior of the building including painting the wooden head. She suggested purchasing vertical blinds for windows faring the street, at a cost of $300. Ms. Mehelich asked for feedback from the commission. Commissioner Toth stated that he was not opposed to the enhancements. Commissioner Motin stated that he is-not in favor of spending a large sum of money, but felt painting of the header was a necessary maintenance item. Commissioner Lieser felt it was worthwhile to make the improvements. Chair Wilson was in agreement with the commissioners. He stated that the header definitely needs attention and a building owned by the city should not be an eyesore. He suggested that the prospective tenant be informed of the interior unprovements that need to be made and see if they have any interest in doing them. He stated he also did not want to make a huge investment in the building, but felt it needs to be made presentable. Staff will proceed with the improvements to the head and purchase of the blinds, and will contact the prospective tenant interested in leasing the space at 720 Main Street. 6. Discuss Status of Bowling Alley Property Ms. Mehelich provided background information regarding the former bowling alley property located a 13161 Highway 10. She noted that Commissioner Toth requested that the HRA discuss the status of the property and what role, if any, the HRA could play in redevelopment of the property. Ms. Mehelich discussed setback issues related to Lake Orono and Highway 10, ownership of adjacent properties, zoning, and purchase price (current property owner, George Larson asking $2,250,000). She noted that staff has received a number of inquiries on the property for proposed uses ranging from bar/restaurant to residential condos, as well as questions regarding setbacks, DNR regulations, permitted uses, and availability of financing assistance for redevelopment or rehabilitation. Ms. Mehelich stated that if the HRA were looking at acquisition of the property, they would need to complete a redevelopment plan. She stated she was not sure if the parcel would qualify for tax increment financial assistance. Commissioner Toth asked if there is enough buildable area for a restaurant. Ms. Mehelich stated that an engineering study would be needed to make that determination. Chair Wilson asked what the cost would be to complete a TIF redevelopment evaluation. Ms. Mehelich stated that the most recent study was done by SEH Engineering for the Bluffs of Elk River for 3 - 4 buildings, at a cost of $15,000 - $20,000. She explained that the study would have to be contracted out and she was not sure of the cost; estimates would need to be obtained. Ms. Mehelich noted that the property does not have to meet a statutory definition of "substandard" to qualify for tax abatement. Chair Wilson asked what the requirements are for tax abatement. Ms. Mehelich stated that