7.2. HRSR 10-07-2019 - Laserfiche WebLink

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Request for Action To Item Number Housing and Redevelopment Authority 7.2 Agenda Section Meeting Date Prepared by General Business October 7, 2019 Amanda Othoudt, EDD Item Description Reviewed by Main and Gates Redevelopment Findings of Fact - Cal Portner, City Administrator Resolution Reviewed by Action Requested Approve, by motion, a resolution finding parcels are occupied by structurally substandard buildings. Background/Discussion At their April 3, 2017, meeting, the HRA directed staff to move forward with the steps necessary to create a redevelopment plan for the property located at the intersection of Main Street, Gates Avenue rd NW and 3 Street. As part of this project, the HRA or the city may incur certain costs related to the creation of a TIF District which may be financed on a temporary basis from available HRA funds. The HRA is proposing to reimburse itself for the costs advances including administrative costs incurred prior to the establishment of the TIF District, subject to the limitations of the TIF Act, and certain costs incurred in connection with a study of blighting conditions, engineering, land and building acquisition, demolition and site preparation costs in an aggregate amount not to exceed the greater of $1,100,000. In order to create a Redevelopment TIF District, the city and the HRA must make a determination that before the demolition or removal of any substandard building, certain conditions existed. Minnesota Statutes, Section 46.174 requires that for a redevelopment district, “The total coverage of the proposed TIF District have parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance.” The HRA engaged LHB, Inc. to conduct an inspection on the properties owned by the HRA to determine if the proposed district meets these requirements. On September 6, 2019, LHB, Inc. found the buildings to be substandard under the definition set forth in the Minnesota Statutes, Sections 469.174 to 469.1794, as amended. Resolutions must be adopted by the HRA and City designating the buildings located at 326 Gates Ave NW, 414, 426 and 430 Main Street NW as structurally substandard so that they can be demolished before the creation of a TIF District. The HRA will have three years from the approval of the resolution to certify the TIF district. Activity must occur before or within five years after certification of the district. The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity