5. HRSR 04-04-2005 - Laserfiche WebLink

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Downtown Revitalization Project Update Apri14, 2005 HRA Meeting Page 2 of 2 on completion of its new facility. A relocation advisor, Conworth Inc., has been retained by the city to advise the property/business owners and residential tenants of their statutory relocation rights and to process all relocation claims. Conworth, Inc. has met with all affected business/property owners and tenants and relocation claims are being processed smoothly. In addition, an ordinance amendment is being processed relating to locations for dry cleaning establishments. Although the city is ultimately responsible for meeting relocation regulations, the relocation costs are being passed directly on to the developer. Small Cities Development Program (SCDP) -Jackson Block Loan A key component of the project financing has included an SCDP grant that was awarded to the city from the MN Department of Employment and Economic Development (DEED) in 2004. Although the city's application included a funding request for commercial and rental rehabilitation, a $400,000 grant was awarded specifically to the Jackson Block rental housing new construction component of the application. The grant application proposed that the city through its HRA, the designated local development organization, would loan MetroPlains $400,000 to help fill the financing gap that results from the disconnect between the cost of constructing affordable rental housing and cash flows available to repay debt. The application proposed that the loan would be repaid in full at 1 % interest at the end of 30 years consistent with MN Housing Financing Agency (MHFA) financing. The loan documents are currently being prepared by the City Attorney for the HRA's consideration at its regular May meeting. MetroPlains anticipates closing on the project financing for the Jackson Block by the end of June. The items above are highlights in activity from the past month. Staff is open to addressing any other specific questions that Commissioners may have with regard to any aspect of the ongoing project.