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HomeMy WebLinkAbout02-11-10 Agenda NotesAGENDA NOTES FOR FEBRUARY 1 1, 2010 BILLS Ehlers 245.00 MnNAHRO 15 7.5 0 Financial Seminar - Hinzman Membership BUSINESS A. Dennis Mann Property - 23xx Vermillion Street (at 23rd St.)add this The Dennis Mann property has been for sale for some time; however it appears he may be eager to sell. The 0.83 acre vacant parcel is located on the east side of Vermillion Street between Gahnz Furniture and State Farm Insurance (please see attached location map). The property is adjacent to the 23rd and Vermillion Street intersection. Extension of 23rd Street east of Vermillion and creation of backage roads for business access has been part of the City's long range plan. The Vermillion Corridor Development Guidelines identified the intersection for a future traffic light. In 2009 the SEH conducted a study of the intersection to determine if it met warrants for signalization. The study found it currently did not; however future commercial development could trigger warrant for a new light. Staff will provide more information on the price of the property at the meeting. Direction: consider whether to pursue acquisition of the Mann Property or whether additional information is needed. B. Bob Melson Loan Agreement The residential rehab loan for 413 W. Second St. is $4,637.72 in arrears. The total loan balance was $14,541 at year end. Staff is meeting with the owner on February 4th. If an agreement on a new schedule of payments, that the owner is able to make, can be agreed upon, it will be proposed to the board for discussion and possible approval. REPORTS A. Hudson Manufacturing David Osberg and Paul Hicks met with Hudson representatives on February 3rd to discuss an outline for the potential purchase of Hudson and relocation to the vacant Intek building on 10th Street. Further details will be provided at the meeting. Ehlers and Associates have developed a preliminary TIF proj ection to fund the possible acquisition of Hudson based upon redevelopment potential of the property. Ehlers estimates a net yield of TIF revenue at $45,000 per year, increasing to $85,000 annually with 2% inflation over 25 years. Ehlers assumes the City would issue a three year (could be longer) temporary G.O. TIF Bond to fund acquisition. After resale of the Hudson property, the remaining debt would be retired with a long term permanent G.O. TIF Bond. Please see the attached Ehlers cash flows for further information. This approach eases the immediate impact of costs on the EDRA budget. The City has contacted Liesch Associates to provide preliminary environmental due diligence and demolition costs. Liesch estimates the cost of conducting a phase I and II environmental site assessments, pre- demolition survey, pre-renovation survey, and demolition at $334,000 - $507,000. Please see attached letter for more information. The Dakota County CDA is scheduled to authorize our $250,000 Hudson grant at their February 9th meeting. B. Red Rock Station Area Study. The Red Rock Project Management Team is scheduled to meet on February 3rd to discuss the recent breakfast event, and the upcoming kick- offlpressevent scheduled for 8:45 am on February 8th at the State Office Building Press Room. Analysis of transit oriented development framework will also be discussed. Staff will provide further information at the meeting. C. Marketing Focus Group. Several small business owners from around town have been contacted and asked if they would be willing to j oin us to discuss what kind of marketing efforts they might currently be doing and to try an d determine how the EDRA can assist them in drawing new customers, particularly with of the bridge construction expect to start this fall and be in full swing by 2011. These businesses include, Barb Hollenbeck (Second Childhood) Mark Vetvick (Country Inn and Suites) Christine Schaffer (Hastings Gift, Garden and Floral) Leslie Nielsen (Meloy Park Florist) Ron Martino (Mississippi Clayworks) Karen Jung (Emporium) Kevin Hoeschen (DBA) Nicole ... (owner of Nu Wave Hair - Westview mall) Jackie Eischen's (Eischen's Cabinets) Michelle Jacobs (chamber of Commerce) Karen Spicer (Board of Tourism) If there are others you think we should include, please let me know and I will invite them as well. We are looking to set up the first meeting the week of February 15tH D. Planning and Development Annual Report Please find a copy of the Planning and Development Annual Report attached. John Hinzman will provide a brief summary at the meeting.