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1111 MEMORANDUM <br /> TO: Housing Redevelopment Authority <br /> FROM: Marc Nevinski, Acting Director of <br /> Economic Development <br /> DATE: April 24, 2000 <br /> SUBJECT: HRA Meeting Agenda <br /> 5. Introduction of New HRA Commissioner Linda Huntington <br /> Ms. Huntington was appointed to the HRA at the April 10 City Council <br /> meeting to fill the vacancy left by Dick Hinkle. <br /> 6. King & Main —Approval of Purchase Agreement & Public <br /> Hearing on the Sale of the Site to the First National Bank of Elk <br /> River <br /> Issue <br /> The First National Bank of Elk River has offered to purchase the King <br /> • & Main site from the HRA. The issue before the HRA is to approve the <br /> final draft of the purchase agreement. <br /> Background <br /> In January of this year, The First National Bank of Elk River offered to <br /> purchase the King & Main site from the HRA for $175,000 to construct <br /> a new building to house additional services and operations. Staff <br /> recently met with bank representatives to discuss a <br /> purchase/development agreement, which is attached for your review. <br /> The key provision in the agreement requires that the bank commence <br /> construction of a building by April 1, 2001, otherwise a penalty of <br /> $8750, which is 5% of the purchase price, will be assessed (see page 3, <br /> paragraph 7). This date will ensure that site is not affected by the "four <br /> year knockdown rule", which requires that activity occur in the district <br /> within four years of the district's certification in order to collect TIF. <br /> Finally, before the sale of the site can occur, the HRA and City Council <br /> must both hold a public hearing and consider any public input on the <br /> sale. <br /> • Requested Action <br /> Staff recommends that the HRA: 1) Hold a public hearing to consider <br /> public comment on the sale. 2) Consider approving the purchase <br /> agreement contingent upon the city council's approval. <br />