5.2. HRSR 02-02-2004 - Laserfiche WebLink

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ITEM # .\4�j • City of Elk • River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Developmen DATE: February 2, 2004 SUBJECT: Consider Extension of Preliminary Redevelopment Agreement with MetroPlains Development, LLC Attachments • Correspondence from LaVerne Hanson,Jr.,MetroPlains Development, 1/28/04. • Original Preliminary Redevelopment Agreement,October 28, 2002. Background • A Preliminary Redevelopment Agreement was entered into between the HRA and its selected developer,MetroPlains Development,in October 2002 to provide a basic framework and certain understandings for examining the possibility of implementing the MetroPlains proposed project. In April 2003 the HRA extended the agreement for six months. The HRA granted second extension of the agreement the following October for a period until January 30,2004. At its January 5th work session meeting,the FIRA directed staff to continue to work with MetroPlains through several issues that remain outstanding,namely the linkage of the Jackson Block and Bluff Block developments. Staff continues to work closely with Ehlers&Assoc.,the project attorney,and the developer to negotiate development agreement terms. The HRA's Preliminary Redevelopment Agreement with MetroPlains expired on January 30, 2004. For the purposes of its financing application to MN Housing Finance Agency,MetroPlains is requesting that the I-RA consider a motion to continue to work with MetroPlains Development under the spirit of the Preliminary Redevelopment Agreement,including Jackson Block, for an extension period up to March 1, 2004. Staff has been advised that a formal extension by written amendment to the agreement is not necessary. While staff believes that 30-days should be sufficient to work out the terms of the development agreement, at the same time staff believes that an additional 30-days could be necessary to draft the language in the development agreement for the HRA's review and consideration at a regular meeting. 4111 Recommendation Staff recommends the HRA consider granting an extension of the Preliminary Redevelopment Agreement with MetroPlains Development,LLC for a period up to April 5, 2004.