7.3. HRSR 06-01-2020 - Laserfiche WebLink

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��i City of Elk ' Request for Action River To Item Number Housing and Redevelopment Authority 7.3 Agenda Section Meeting Date Prepared by GeneralJune 1, 2020 Amanda Othoudt,EDD Item Description Reviewed by Main Street and Gates Redevelopment Project— Cal Portner, City Administrator Award Demolition Contract Reviewed by Action Requested Authorize,by motion,the executive director to negotiate a contract for the demolition of buildings located at 326 Gates Avenue NW,and 414, 420, 426 and 430 Main Street NW with [the chosen contractor] in an amount not to exceed $ and authorize the executive director and the chair to execute the contract in a form acceptable to the HRA attorney,the chair and the executive director. 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 NW, Gates Avenue NW and 3rd Street NW.As part of this project,the HRA will incur certain costs related to the creation of a TIF District which may be financed on a temporary basis from available HRA funds. At their November 7, 2017, meeting,the HRA expressed interest in purchasing residential properties along east Main Street connecting to Highway 169 for a potential redevelopment project that would align with the Mississippi Connections Plan. At their December 1,2017, meeting, the HRA and the City Council adopted an interfund loan resolution 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$1,100,00 or the adopted and,if applicable, amended Tax Increment Financing Plan budget for the TIF District. Originally, there were seven properties in the proposed redevelopment area. At their February 3, 2020, meeting,the HRA approved a resolution to include 406 Main Street NW into the proposed redevelopment project, for a total of eight properties. To date, seven properties have been purchased. The HRA directed staff to amend the Original Interfund Loan Resolution to request an additional interfund loan in the maximum principal amount of$200,000 to finance additional qualified costs, for a total estimated budget of$1,200,000. At their October 7, 2019, meeting resolutions were adopted by the HRA and city designating the buildings located at 326 Gates Avenue 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 Elk River Vision A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional p D W E H E D D Y service, and community engagement that encourages and inspires prosperity ,g /` UR