5.0. HRSR 05-03-2004 - Laserfiche WebLink

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Item if 5 -Ii . City of Elk River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: May 3, 2004 SUBJECT: Downtown Revitalization Project Update Attachments • Memorandum dated April 28,2004 regarding Proposed MetroPlains Project. • Downtown Revitalization Project Description. • Correspondence dated April 8, 2004 from MN DEED to City of Elk River. • Article "MetroPlains hits roadblock in rebirth of downtown Elk River",The Business Journal,April 16, 2004. 410 • Rivers Edge Downtown Business Association DRAFT Meeting Minutes,April 14,2004. Background At its April meeting the HRA chose note to extend the Preliminary Redevelopment Agreement with MetroPlains Development. The HRA directed staff and consultants to work closely with MetroPlains over the next 30-days to reach agreement on certain key points to be included in the Development Agreement. Issue The attached memorandum dated April 28,2004 describes the agreement reached consistent with the HRA's direction with MetroPlains. Staff from Ehlers &Associates and Briggs &Morgan will present the agreement details and discuss next steps at the HRA meeting. Financing Applications The attached April 8,2004 letter from the MN Department of Employment and Economic Development (DEED) indicates that the City's application for a Small Cities Development Program (SCDP) grant has been approved for funding in the amount of$400,000 toward the proposed new housing construction. The city's application included the following requests: • Commercial Rehabilitation (13 buildings) $ 85,000 • Renter Occupied Rehabilitation (5 units) $ 425,100 • New Housing Construction (Jackson Block) $ 618,000 Total Application Request $1,128,100 • In addition MetroPlains was awarded a portion of their second round tax credit request from MN Housing Finance Agency for the Jackson Block housing.