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Housing & Redevelopment Authority March 1, 2010 Page 2 that a portion of the property could be delegated to another entity, which in this case, has been lost to Minnwest Bank She stated that city must acknowledge the owner's right to • decide how to use the property in the interim period. Commissioner Motin asked if the lease agreements are renewable. He stated the CIC documents reference a 3 - 12 month rental period. Ms. Boulton stated that the bylaws for the homeowner's association indicate an expiration date for a lease agreement, but do not saythe lease period cannot be consecutive. Therefore, it would be her understanding that the lease could be renewed Commissioner Kuester asked if there is still an agreement if MetroPlains is no longer the owner. Ms. Boulton explained that the citystill has a TIF agreement with MetroPlains for payment of the tax increment. Commissioner Kuester asked how far the agreement goes beyond the TIF. Ms. Boulton stated that the agreement included construction and development, indemnification provisions, insurance, and maintenance and operation terms, as well. Commissioner Kuester asked why the agreement is still with MetroPlains and is not transferred to the Bluff Blocky Ms. Boulton explained that the agreement is still with MetroPlains, even though they do not control the property. She stated that MetroPlains will run the risk if something happens, they will not get the TIF payment. Chair Wilson asked what would happen if Bluff Block, LLC leaves; will the condos turn into rental propertyfrom then on.> Ms. Boulton explained that the cityhas some control over what happens if the property is sold. She noted that the cites zoning ordinance does allow rental property above commercial in this district. She stated that the property may continue to be rental until the economy changes. Commissioner Motin stated he was fine with rental of the property for a year or two, since having it sit empty is not good. He stated that he does have concerns for the units becoming permanent rental in the future. Richard Schroeder of Minnwest Bank, stated that despite their efforts, the Bluff Block residential condo units remain unsold and the heat, taxes and payments need to be made. He explained that the C[C documents' allow owners to rent their units as long as the meet the guidelines. He noted that three of the condo units are owned individually, and the bank owns 64 of the units and the commercial space. He noted that the association of owners own the building itself. Mr. Schroeder stated that Acuity Capital Group has had numerous inquiries to lease the residential units. He explained that they plan to lease the 15 units that are finished. Mr. Schroeder stated that prospective tenants will go through background checks and the leases will be for 3 - 12 months. Mr. Schroder stated that their mission has not changed; they are still focused on selling the property. 6. C+ther Business Ms. Mehelich noted that the March River's Edge meeting has been cancelled and their next meeting is scheduled for April 14, 2010. Ms. Mehelich stated that the closing on the NSP house has been held. Chair Wilson indicated that an application will be reviewed bythe Planning Commission and • City Council this month for a Fast Cash business at 356 Jackson Avenue.