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Housing & Redevelopment Authority <br />May 2, 2005 <br />Page 2 <br />Avenue parking lot bid has been postponed until the May 16 City Council meeting until all <br />of the contingency requirements of the development agreement are resolved. <br />Chair Wilson questioned what the HRA's role is in parking enforcement. Ms. Steinmetz <br />indicated that the taskforce will provide their enforcement recommendations to the HRA in <br />June and the HRA will then make their recommendations to the City Council. <br />1'~j~rt Constrcrct~ion <br />Ms. Mehelich stated that the Jackson Block property will be transferred to the developer <br />following the substantial completion of the parking lot improvement and a number of <br />contingencies outlined in the development agreement. Ms. Mehelich indicated that one of <br />the conditions of the sale is the City Council review and approval of the project construction <br />plan which includes the parking plans for the construction staging period and post <br />construction period. Ms. Mehelich noted that the review and approval of these plans is a <br />requirement of the development agreement and the normal reviews required of the city's <br />planning and zoning process will be dealt with during the plat review process. Staff <br />anticipates the Council's consideration of the construction plans at their May 16 meeting. <br />Canrrnmzcations <br />Ms. Mehelich stated that the City Engineer will be distributing information relating to the <br />upcoming parking lot construction by visiting businesses door to door in the downtown <br />area. She indicated that staff is preparing the next edition of the Downtown Revitalization <br />Q&A Newsletter for distribution in June. Ms. Mehelich also indicated that MetroPlains has <br />erected a sign at each project site that includes an image description of the project and <br />contact phone numbers. She noted that these signs have generated several calls on the condo <br />units. <br />Commissioner Motin indicated that the City Council approved an ordinance change allowing <br />drycleaners in the downtown area at their April 4, 2005 meeting but Mr. Nadeau has decided <br />not to continue his drycleaning business in Elk River. <br />5.1. Consider Small Cities Development Program Loan Agreement <br />Assistant Director of Economic Development Heidi Steinmetz stated that a key component <br />of the Downtown Revitalization Project financing includes a Small Cities Development <br />Program (SCDP) grant that was awarded to the city from the MN Department of <br />Employment and Economic Development (DEED) in 2004 specifically for the Jackson <br />Block rental housing new construction component. <br />Ms. Steinmetz indicated that the grant application proposed that the HRA would loan MDI <br />Limited Partnership #70 (asset manager for MetroPlains Development, LLC) $400,000 to <br />help fill in the financing gap that results from the disconnect between the cost of <br />constructing affordable rental housing and cash flows available to repay debt. Ms. Steinmetz <br />stated that the loan is proposed to be paid back in full at 1% interest at the end of 30 years, <br />which is consistent with MN Housing Financing Agency financing. <br />Ms. Steinmetz stated that staff is asking the HRA to consider the general terms of the loan <br />agreement between the city and MetroPlains. Ms. Steinmetz reviewed the following key <br />components of the loan agreement: <br />^ MetroPlains must construct 32 units of affordable rental housing. This means that <br />the rental rates of these units must be affordable to households earning no more <br />