4.0. HRSR 05-06-1996 - Laserfiche WebLink

Home Browse Search

ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY MEMORANDUM TO: Housing and Redevelopment Authority FROM: Pat Klaers, Executiv D re' or DATE: May 6, 1996 SUBJECT: King and Main Project At the April 17, 1996, meeting the HRA was in agreement that the city should pursue the purchasing of lots in the northwest corner of the King and Main intersection. Also at that meeting the HRA discussed the project timeframe options and the worst/best case development scenarios. The site has three structures on it, contains four different parcels of property and is 180 feet by 180 feet for 32,400 square feet (about 3/4 of an acre). The purchase price for the properties is a total of$410,000. Mark Kleckner, W Century 21, is representing the owners of the property. A draft purchase agreement is either enclosed for your reference or will be handed out and reviewed at the meeting. The timetable calls for the city to sign off on the purchase agreement before May 30, 1996, and to have the properties close by June 26, 1996. For tax and TIF reasons, the city needs to take possession before the end of June, 1996. The method to recapture the city's investment in this project is to do a redevelopment TIF district. In this regard, Building Official Cliff Skogstad will inspect the properties and videotape the buildings in order to document that the facilities meet the definition of a TIF redevelopment district. At the last meeting on April 17, 1996, the HRA discussed two different options for the TIF project. One option was to do the project as soon as possible and the second option was to try to bring the original project valuation down so that a larger increment could be captured. City Attorney Dave Sellergren has analyzed the TIF law and provided us with a memo that outlines how the city can get this site value down to a zero original net tax capacity. If we proceed under this scenario, we would want the county assessing department to verify that their understanding of our project and the law is the same as what is outlined by Dave Sellergren. P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment