09-07-2010 HRA MIN SPEC - Laserfiche WebLink

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• MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE CITY OF ELK RIVER (UPPER TOWN CONFERENCE ROOM) TUESDAY, SEPTEMBER 7, 2010 Members Present: Chair Wilson, Commissioners Kuester, Lieser, Motin and Toth Members Absent: None Staff Present: Economic Development Director Catherine Mehelich and Economic Development Assistant Annie Deckert Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment Authority was called to order at 6:05 p.m. by Chair Wilson. 2. Work Session Discussion Ms. Mehelich explained that the current DEED Redevelopment Grant Program provides funds for acquisition, demolition and remediation activities, but only for sites that have a private development project in place. The proposed Demolition Loan Program would . provide funds for demolition activities on sites even when there is no imminent redevelopment opportunity or plan. She noted that that the legislative bill for the program still needs to be written and approved. Ms. Mehelich stated that DEED is requesting potential project information from cities in order to support their request for legislative funding that will accompany the bill. She explained that DEED has heard from a number of cities who operate redevelopment programs, that they have buildings that are blighted or substandard which need to be removed but they have no project for the site. The proposed loan program would fund up to 100% demolition cost for qualifying site. The loan would be low interest (2 percent), and interest-free for the first two years. Principle and interest payments would start in year three if the site has not been developed. If the site is developed, the remaining principal and interest up to 50 percent of the loan) could be forgiven based on development benefits. Ms. Mehelich stated that the proposed program may be a potential tool for the HRA's "toolbox". Also, this could be an opportunity for one of EDA strategic plan goals; rehabilitation and redevelopment of deteriorating properties in the city. She noted that the proposed program is not their only option, but staff wanted to open up the topic to the HRA for discussion. Ms. Mehelich explained that the potential projects drafted by staff are for discussion purposes and will not likely meet all of the criteria. She reviewed the criteria which qualifying projects must be able to meet (upon program implementation): • • The property and structures are owned by the development authority (at time of official application);