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Request for Action <br /> <br /> <br />To Item Number <br />Housing and Redevelopment Authority 7.3 <br />Agenda Section Meeting Date Prepared by <br />General Business October 7, 2019 Amanda Othoudt, EDD <br />Item Description Reviewed by <br />Preliminary Development Agreement with Modern Cal Portner, City Administrator <br />Construction of MN <br />Reviewed by <br /> <br /> <br />Action Requested <br />Provide a recommendation, by motion, on a preliminary development agreement with Modern <br />Construction of MN. <br /> <br />Background/Discussion <br />At their September 2, 2019, Work Session, the City Council heard a presentation by Modern <br />Construction of MN on a high density, market rate, mixed-use development concept in downtown Elk <br />River. The property up for discussion is owned by multiple entities, which includes parcel #75-405-0230 <br />and 75-405-0235 owned by the HRA. Modern Construction of Minnesota, Inc. is owned and operated by <br />Jesse Hartung, a local developer. <br /> <br />The developer requested the council consider an option agreement for the property the city and HRA <br />own within the project area. Council directed city staff to research other agreements that can accomplish <br />the developer’s objectives, while limiting the risk of the city. <br /> <br />At their September 16, 2019, Work Session, it was the consensus of the council to enter into a <br />preliminary development agreement with the developer. The agreement allows the developer to explore <br />the idea of a multi-family, mixed-use development concept in downtown Elk River. The HRA is listed as <br />a party to the agreement, since the HRA owns some of the property. <br /> <br />Important components of the agreement include: <br /> <br />Section 3 pertains to the developer’s obligations which encompass all aspects of the discussion that the <br />council discussed at their work session on the 16. <br /> <br />Section 4 pertains to the city and the HRA’s obligations to take appropriate steps to review the proposal <br />as we would in any development scenario. <br /> <br />Section 5 refers to contingencies subject to any request for financial assistance, project feasibility, the <br />project is in the best interest of the city, and the ability of the city and the HRA to agree upon the terms <br />to convey property to the developer, with the sole understanding that this agreement does not obligate <br />the city or the HRA to sell the properties to the developer. <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 />