5.1. HRSR 06-20-2023 - Laserfiche WebLink

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Request for Action To Item Number Housing and Redevelopment Authority 5.1 Agenda Section Meeting Date Prepared by Public Hearings June 20, 2023 Brent O’Neil, Economic Development Director Item Description Reviewed by Sale of Properties at Main and Gates Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, a resolution authorizing execution of purchase agreement selling properties at Main Street and Gates Avenue. Background/Discussion The HRA has marketed seven properties at Main Street and Gates Avenue since acquiring and preparing the properties for development approximately three years ago. The HRA has received an offer to purchase the entire property for $450,000. This is in line with an appraisal and suggested list price from Patcher Messner of $5.50 to $6.00 per foot for the approximately 75,000 sq ft property. The county assessed value is $372,000. Ron Touchette plans to lead the acquisition of the site to facilitate a medical office building on the property. The first phase of the development proposes a one-story building between 6,000 and 8,000 sq ft. The site as configured would accommodate a second building in a future phase. The agreement includes a reverter requiring the construction of the first building within one year of the property transfer, which is proposed for the end of September 2023. The due diligence period will include coordination with the city on a development agreement. Financial Impact The sale of these properties less associated costs will yield net proceeds to the HRA of approximately $425,000. Mission/Policy/Goal The Main and Gates site is a priority redevelopment property of the city and HRA. Attachments  Resolution  Purchase Agreement  Concept Building Elevation  Concept Site Plan The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: January 2023