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<br /> <br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Housing and Redevelopment Authority 7.7 <br />Agenda Section Meeting Date Prepared by <br /> <br />General BusinessFebruary 2, 2015Colleen Eddy, Economic Development Specialist <br />Item Description Reviewed by <br />Discussion of Demolition/ Site Stabilization Jeremy Barnhart, Deputy Director, CODD <br />programs <br />Reviewed by <br /> <br /> <br />Action Requested <br /> <br />Item presented for information. <br /> <br />Background/Discussion <br /> <br />At the January 5 HRA meeting, when discussing roadblocks to redevelopment and reinvestment, one of <br />the members mentioned that occasionally, demolition was more appropriate for some structures. <br /> <br />The Minnesota Department of Employment and Economic Development (DEED) has a Demolition <br />Loan program that HRA and EDA’s can access for such projects. Staff has suggested this option on <br />some projects, however, the HRA or City must own the property. <br /> <br />It might be appropriate for the HRA to develop a revolving loan program that is patterned closely after <br />this program. <br /> <br />The details of DEEDs program: <br /> <br />It helps development authorities with the costs of demolishing blighted buildings on sites that have future <br />development potential but where there are no current development plans. Some of the qualifying projects <br />include structures that become a threat to public safety because of inadequate maintenance, dilapidation, <br />obsolescence or abandonment. Upon completion of the demolition, the development authority <br />reasonably expects that the property will be improved and these improvements will result in economic <br />development benefits to the municipality. <br /> <br />Eligible Applicants: Development authorities, including cities, counties, port authorities, housing and <br />redevelopment authorities, and economic development authorities. <br /> <br />Eligible Costs: Demolition activities, including interior remediation such as asbestos abatement. Loans <br />would pay up to 100 percent of demolition costs for a qualifying site. The loans may also assist with site <br />acquisition costs. <br /> <br />Loan Terms and Conditions: Property and buildings must be publicly owned. The following terms apply: <br />Loans will be low-interest (2 percent) <br />Loans will be interest-free for first two years <br />Principal and interest payments will start in year three <br /> <br />