7. HRSR 03-02-2009 - Laserfiche WebLink

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Item # 7 Kiver MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: March 2, 2009 SUBJECT: Discuss Improvements to HRA Buildings at 716 & 720 Main Street Background In late December 2006 the HRA entered into a 5-year contract for deed for the purchase of the buildings at 716 & 720 Main Street, formerly known as the Houlton buildings. The primary purpose of the HRA's purchase of the property was to take advantage of the nono- leveraged sale as part of a long term positioning strategy to be able to expand surface and possible deck parking downtown. In January 2008 the Elk River Area Arts Alliance began occupancy of the 716 Main Street building under a 2-year lease authorized by the HRA. In addition, First National Bank continues to lease the basement of 716 Main Street. The building at 720 Main Street has been vacant since September 2007 when the lease with O'Reilly Auto Parts expired, with the exception of a small storage area leased by Arts Alliance. Issue It has come to staff's attention that the buildings have been experiencing several roof leaks, particularly the Arts Alliance building. According to city maintenance staff, who have consulted with a private contractor, the roof requires either a repair to temporarily patch the problem areas (estimate $3,500) or a re-roof (estimate $35,000-40,000). No formal estimates or bids have been requested at this point. In addition, maintenance staff has advised that the rooftop HVAC unit is in a very weak condition and may require major repair or replacement in the future, if the buildings are continued to be occupied. Staff requests the HRA's discussion on short term and long term intentions for the buildings, and provide direction regarding the extent and timing of improvement options. S:\EDA\HRA\Houlton Buildings\3.2.09 HRA.improvements.doc