4.7. SR 02-16-2016 - Laserfiche WebLink

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Request for Action To Item Number Mayor and City Council 4.7 Agenda Section Meeting Date Prepared by ConsentFebruary 16, 2016Amanda Othoudt, EDD Item Description Reviewed by HRA Blighted Properties Demolition and Cal Portner, City Administrator Forgivable Residential Loan Program Reviewed by Action Requested Approve, by motion, the HRA Blighted Properties Demolition and Forgivable Residential Loan Program policy and application. Background/Discussion The City of Elk River Housing and its Housing and Redevelopment Authority (HRA) has developed a program to meet the untapped need for residential assistance with demolition and other redevelopment activities when either there is no current development plan or where future development visions are hindered by current blight. In some cases, despite a potential for future redevelopment, hazardous conditions or other public safety factors may become a community’s immediate concern. Securing and maintaining vacant dilapidated structures is costly. Therefore, the HRA has created the Blighted Properties Demolition & Forgivable Residential Loan program to include loan funds for demolition activities when an imminent redevelopment opportunity does not currently exist. To qualify for the Blighted Properties Demolition & Forgivable Residential loan program, the following conditions must be met: 1.Upon completion of the project, the property and structures will be owner-occupied dwellings; 2.The structures constitute a threat to public safety because of inadequate maintenance, dilapidation, obsolescence, or abandonment; 3.Upon completion of the demolition, the HRA reasonably expects that the property will be improved and these improvements will result in economic development benefits to the municipality. 4.The structure must be defined per MN State Statue 117.025, Subdivision 7 as “structurally substandard”. The Blighted Properties Demolition & Forgivable Residential Loan program can pay up to $75,000 of the demolition costs for a qualifying site. “Demolition costs” means the costs of demolition, destruction, removal, and clearance of all structures and other improvements on the project site, including interior remedial activities, and proper disposal thereof. The HRA may forgive the principal of the loan and interest accrued but unpaid thereon, if any, up to 50 percent of the original loan amount, not to exceed the costs of demolition, upon completion of the project. The applicant is eligible to request forgiveness after 5 years of maintaining the property as an