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<br />Request for Action <br /> <br /> <br />To Item Number <br />Housing and Redevelopment Authority 9.1 <br />Agenda Section Meeting Date Prepared by <br />General Business January 3, 2017 Amanda Othoudt, EDD <br />Item Description Reviewed by <br />Saxon Motors and Elk River Lodge Site Discussion Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />For discussion. <br /> <br />Background/Discussion <br />Staff met with Pat Briggs and a developer last September to discuss the construction of multiple <br />apartment buildings on the Saxon and Elk River Lodge properties. The sketch plan he provided included <br />384 units in four buildings and demolition of the existing buildings. The parcels were recently re-zoned to <br />residential with the FAST zoning changes. <br /> <br />Staff recently contacted Mr. Briggs regarding his plans to redevelop the properties. After a long <br />discussion, Mr. Briggs indicated that he would entertain an offer from the HRA to purchase these <br />properties. An appraisal will need to be completed to determine the fair market value of the properties. <br /> <br />Provided the HRA can reach an agreement with Mr. Briggs before February 1, 2017, the HRA could <br />apply for DEED’s Demolition Loan Program. This program assists development authorities with the <br />costs of demolishing blighted buildings on sites that have future development potential but where there <br />are no current development plans. <br /> <br />The program can pay up to 100% of the acquisition and demolition costs for a qualifying site including <br />demolition, destruction, removal, and clearance of all structures and other improvements on the project <br />site, including interior remedial activities, and proper disposal thereof. <br /> <br />The maximum loan amount for any project is $1 million. Currently, loans have a 2% interest rate and no <br />interest or payments for the first 2 years. If the site is developed over the term of the loan, then 50% of <br />the remaining loan balance would be forgiven. Eligible applicants include cities, counties, port authorities, <br />housing and redevelopment authorities, and economic development authorities. <br /> <br />Financial Impact <br />N/A <br /> <br />Attachments <br /> Site Map <br /> State Demolition Loan Program <br /> <br /> <br />