12-07-2009 HRA MIN - Laserfiche WebLink

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Housing & Redevelopment Authority December 7, 2009 Page 2 this expense fit into the terms of the lease agreement. Ms. Mehelich explained that any one- time expenses over $1,000 will be shared at a 50/50 ratio. Commission Motin stated that replacement of the HVAC units does not actually extend the life of the building. After further discussion, it was the consensus to remove the following language in Bullet #4: "In the event of a significant repair that extends the life of the building". Ms. Mehelich stated that Finance Director Tim Simon suggested that a payment plan could be set up for certain improvements. Commissioner Motin stated that the shared $7,000 HVAC expense could be spread over two years, but he preferred that the Arts Alliance pay all at once if they can. MOTION BY COMMISSIONER MOTIN, SECONDED BY COMMISSIONER LIESER TO AUTHORIZE THE HRA CHAIR AND EXECUTIVE DIRECTOR TO ENTER INTO A LEASE AGREEMENT WITH THE ELK RIVER AREA ARTS ALLIANCE FOR 716 MAIN STREET, SUBJECT TO THE PREVIOUS LEASE RENEWAL TERMS WITH THE FOLLOWING EXCEPTIONS: • LEASE TERM SHALL BE UP TO 2 -YEARS WITH AUTOMATIC RENEWAL AFTER 1 -YEAR UNLESS HRA ISSUES A 6 -MONTH NOTICE. • LEASED PREMISES SHALL INCLUDE ONLY 716 MAIN STREET BUILDING (FIRST FLOOR AND BASEMENT) FOR USES SPECIFIED IN THE LEASE. • ERAAA SHALL BE RESPONSIBLE FOR REIMBURSING THE HRA'S INSURANCE COST RELATIVE TO THE LEASED PREMISES - $109.08/MONTH FOR PERIOD 1-1-2010 TO 7-1-2010. HRA WILL NOTIFY ERAAA IN WRITING OF THE INSURANCE PREMIUM DUE THE FOLLOWING 6 -MONTHS THEREAFTER. • ERAAA SHALL BE RESPONSIBLE FOR ROUTINE MAINTENANCE AND UTILITIES. COST FOR STRUCTURAL OR MECHANICAL REPAIRS AND REPLACEMENTS NECESSARY TO OCCUPY THE BUILDING IN AN AMOUNT OVER $1,000 SHALL BE SHARED 50/50 BETWEEN THE HRA AND ERAAA. THE HRA WOULD ALLOW THE ERAAA PORTION TO BE AMORTIZED AND PAID BACK OVER A NEGOTIATED PERIOD OF TIME. MOTION CARRIED 3-0. 6. Discuss HRA Goals and Projects for 2010 Ms. Mehelich reviewed the HRH's 2009 goals and projects and the proposed goals and projects for 2010 as outlined in the staff report to the Commission dated December 7, 2009. Chair Wilson stated that he would like the HRA to consider the homeless needs in Elk River, and what role, if any, the HRA could possibly have in addressing the issue. Commissioner Lieser concurred. Commissioner Motin stated he also concurred, but felt the topic may be more of a social issue. Commissioner Motin stated that he is aware of a hotel in the city that has requested converting the business to apartments. Chair Wilson stated it may be good for the HRA to look at the city's inventory to determine their needs for this type of housing. Ms. Mehelich stated that a request for tax credit support for affordable apartments was recently made to the City Council, and she asked if the HRA would like to see these types of requests when they come in. Chair Wilson stated he felt the HRA would like to be informed about them.