6.0. HRSR 01-28-2002 - Laserfiche WebLink

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Item 6. • City of Elk River MEMORANDUM TO: Economic Development Authority Housing & Redevelopment Authority Mayor & City Council FROM: Catherine Mehelich, Director of Economic Development DATE: January 14, 2002 SUBJECT: NE Corner of Hwy 169 & Main Street Redevelopment Update Attachments * Court of Appeals overturns Walser district court decision,LMC, Nov. 21,2001. • * TIF still viable tool, but court decision is warning to cities,MN Real Estate Journal, Dec. 10,2001 Issue Developer, Kraus-Anderson Realty,has been considering a redevelopment of the NE Corner of Hwy 169 &Main Street since Spring 2001. The developer has suggested consideration of tax increment finance assistance from the City to fund extra-ordinary costs, such as acquisition and demolition, related to completing a redevelopment project. Background In September 2001 the developer submitted a preliminary site plan for staff review. The proposed redevelopment area included the former Ron's Foods, City Emporium, and two adjacent apartment buildings along Third Street. When asked to consider the use of TIF, the HRA, EDA and City Council members strongly suggested that the developer also consider including the adjacent single family homes located to the north for a larger redevelopment concept. The developer indicated to staff a willingness to consider the larger area,but again noted the importance of the City's consideration of tax increment financing for the larger project. One of the first steps in evaluating the proposed redevelopment project for tax increment financing is a "structurally substandard" finding required by statute. Staff offered to complete an initial assessment of the proposed redevelopment area for its eligibility. The City Building Official reported that based upon past inspections and knowledge of the properties that there is "minimal structural deterioration", not considering building or energy code compliance.