7.3. HRSR 07-06-2020 - 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 General BusinessJuly 6, 2020 Amanda Othoudt,EDD Item Description Reviewed by Main and Gates Redevelopment Findings of Fact Cal Portner, City Administrator 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 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 proposes to reimburse itself for the 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 blighted conditions, engineering,land and building acquisition,demolition and site preparation in an aggregate amount not to exceed $1,300,000 as amended on April 6, 2020. To create a Redevelopment TIF District per Minnesota Statutes, Section 46.174, the city and the HRA must determine before the demolition or removal of any substandard building that certain conditions existed. "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." On October 7,2019, the HRA and the City Council adopted resolutions designating 326 Gates Ave NW,414, 426 and 430 Main Street NW as structurally substandard prior to being demolished or removed in anticipation of creating a redevelopment or renewal and renovation tax increment financing district based on the TIF Analysis Findings dated September 6, 2019. The HRA engaged LHB,Inc. to conduct an inspection on two additional properties acquired by the HRA to determine if the proposed district meets the requirements. On June 1, 2020,LHB found 406 Main St NW to be structurally substandard under the definition set forth in the Minnesota Statutes, Sections 469.174 to 469.1794. A resolution must be adopted by the HRA and the city designating the buildings structurally substandard before the creation of the 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