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<br />Request for Action <br /> <br /> <br />To Item Number <br />Housing and Redevelopment Authority 8.1 <br />Agenda Section Meeting Date Prepared by <br />Work Session January 7, 2019 Amanda Othoudt, EDD <br />Item Description Reviewed by <br />Main Street and Gates Redevelopment Project Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Receive an update on the Main and Gates redevelopment project and provide staff direction. <br /> <br />Background/Discussion <br />At their November 7, 2017, meeting, the HRA expressed interest in purchasing residential properties <br />along east Main Street connecting to Highway 169 for a potential redevelopment project that would align <br />with the Mississippi Connections Plan. <br /> <br />There are seven properties in the proposed redevelopment area and four properties have been purchased. <br />Staff is working with the property owner of two more properties within the redevelopment area. <br /> <br />Interfund loan resolutions were approved by the HRA and Council in December in the event a TIF <br />District is created to pay for acquisition, demolition and site prep costs incurred as part of this project. <br /> <br />If the HRA plans to create a Redevelopment TIF District, a blight analysis will need to be conducted <br />before the properties are demolished. To qualify as a redevelopment TIF District, more than 50% of the <br />buildings will need to be found to be substandard. <br /> <br />In addition, the Council will have to pass a resolution declaring the buildings to be substandard and either <br />finance the demo costs itself (the city) or enter into an agreement with a private developer to demo the <br />buildings. Attached is the statutory language on the process. <br /> <br />Staff received estimates for the cost to demo the four properties of $74,150. <br /> <br />Financial Impact <br />The estimated budget for the project is $1,096,250 which includes acquisition, appraisal and demolition <br />costs. The HRA will utilize reserve funds for the purchase and demolition of the properties. <br /> <br />Attachments <br /> Demolition Estimates <br /> Summary TIF Districts Redev. Renew and Renov. June 2017 <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />