6.0. HRSR 04-05-2004 - Laserfiche WebLink

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ITEM # 6. • ^41// City of Elk River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: April 5, 2004 SUBJECT: Consider Arrow Building Center Redevelopment Concept Attachments • Aerial of redevelopment area • Preliminary site plan -Arrow Building Center Redevelopment Redevelopment Concept • Staff has received a concept plan from Arrow Building Center for the redevelopment of its facilities and operations located at the intersection of King Ave and State Street,north of Highway 10 and the railroad. The redevelopment concept includes the existing Eagles Club building, the former NAPA building,Arrow Building Center office building and two warehouse buildings. Arrow Building Center proposes to construct two new facilities;a 6,400 square foot office/showroom building and a 12,840 square foot warehouse building. In addition the project may include vacating a portion of King Ave and State Street (Railroad Drive) as a private drive rather than a public street. The new construction cost of the 2 buildings is estimated to be $1 million ($52/sf), not including acquisition and demolition. Arrow Building Center is working with John Weicht&Associates on the redevelopment plan and construction. John Weicht will be present at the HRA meeting to discuss the redevelopment concept. Financing Request In order to offset some of the costs of the redevelopment project,Arrow Building Center has verbally requested Tax Rebate Financing (abatement) from the City. Mr. Weicht estimates the cost of acquiring the Eagles Club building and the former NAPA building at $400,000. The cost of demolition and asbestos removal for the 5 buildings is estimated to be $100,000. Arrow Building Center is requesting the City's, and potentially Sherburne • County's,TRF assistance toward the cost of demolition. In addition Arrow Building Center