6. HRSR 06-06-2011 - Laserfiche WebLink

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~ /~, Elk REQUEST FOR ACTION River TO ITEM NUMBER Housin & Redevelo ment Authori 6 AGENDA SECTION MEETING DATE PREPARED BY 6 June 2011 Annie Deckert, Director of Economic Develo ment ITEM DESCRIPTION REVIEWED By Consider Lease Extension with Arts Alliance for 716 Main Tim Simon, Finance Director Street REVIEWED BY ACTION REQUESTED Authorize 1-year lease extension with the Elk River Area Arts Alliance (ERAA) for 716 Main Street under the current lease terms. BACKGROUND/DISCUSSION In January 2008 the ERAA began occupancy of the 716 Main Street building under ashort-term lease authorized by the HRA. Purchased in 2008 by the HRA, the primary purpose of this purchase was to be able to expand surface and possible deck parking downtown. Since then, the HRA has maintained the buildings with minimal maintenance, however within the past two years, the ongoing maintenance costs have increased (i.e.: roof repairs, HVAC systems, etc.). Since 2009, approximately $4800 in roof maintenance costs has been incurred. An estimate of approximately $45,000 to replace the roof was obtained in 2010. The building maintenance budget for 2011 is $5000. At the Apri14~', 2011 HRA meeting, the HRA discussed different options regarding their long term intentions of 716 and 720 Main Street to determine how maintenance issues will be handled. Options included: • Create approximately 21 surface parking stalls • Facilitate ramp or deck parking • Sell buildings for private business development/redevelopment • Maintain buildings for longer term lease (10-years) to new business The HRA favored the first two options and directed staff to research the cost of removing the buildings in addition to determining what (if any) portions of the wall between the Elk River Meat Market and 716 Main Street are shared. Commissioners indicated there was no immediate need for parking, however, stated these properties would most likely be needed for parking in the future. Estimates for demolition (which include determining common wall) range from $48,000-$55,000, depending on if the wall is shared, or if there is a double wall. A wall agreement appearing in the title work during the purchase of the property indicates that in the event of a party (shared) wall, HRA would be responsible for repairing any damage which may occur from demolition. N:\Departments\Communiry Development\Economic Development\Houlton Buildings\Arts Alliance\June 2011 Action Requested lease extension.doc