5. HRSR 05-03-2010 - Laserfiche WebLink

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ITEM # 5. Ci t-uver MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: May 3, 2010 SUBJECT: Consider Request by Elk River Area Arts Alliance for Use of 720 Main Street Building Attachment • Correspondence from Arts Alliance dated Apri112, 2010. Issue The Elk River Area Arts Alliance is interested in expanding its operations in the HRA buildings downtown. Specifically they axe requesting the HRA's permission to allow ERAAA to further explore remodeling the adjacent 720 Main Street (former auto parts) building under a longer term lease. 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 non- 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. The lease was recently extended an additional 2-years commencing December 31, 2009. 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 temporary storage/special events by Arts Alliance. Discussion The attached correspondence from the ERAAA Executive Director John Standen summarizes their process to research and explore options to expand in the downtown location. Mr. Standen will be at the HRA meeting to answer any questions as part of the HRA's discussion.