07-24-1997 - Laserfiche WebLink

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• Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Director of Economic Development Date: July 17, 1997 Subject: Consideration of Tax Increment Request to Mounds View Family (5.A) Apartments (The Partnership) for the Rehabilitation of Red Oak Apartments (Silver Lake Commons) Background: Silver Lake Commons (SLC) was introduced to the EDC at the April 24, 1997 meeting and a recommendation was made in support of the concept but further evaluation was needed to give a sound recommendation regarding the request for tax increment assistance. The proposal has evolved over the past few months but the concept is relatively the same. II) The Partnership held two neighborhood meetings to discuss SLC and changes have been made to accommodate some of the resident concerns. SLC includes the significant rehabilitation of Red Oak Apartments which is located at 2665 Highway 10 and the new construction of 16 rental townhomes. The new townhomes will be located on the three vacant parcels to the east of the existing apartments. The corner parcel is currently owned by the EDA. This lot was purchased for redevelopment purposes in 1995 for $125,000. The purchase price was based on appraisals that came in at $140,000 and $150,000. The appraisals were based on the current structure of the home as a triplex and the current zoning of the property as R-3. The triplex was demolished at the expense of the EDA for $6,000. It was the initial intention of the EDA to purchase the lot and rezone the parcels for a commercial use. In an effort to identify a user for these lots, the EDC suggested that a Request for Information be prepared and distributed to developers for suggestions on uses for the property. The request was distributed to over 25 local developers in December of 1995. There was no interest in a commercial use for the parcels generated by the request. There was one request for possible senior townhomes and a funeral home and animal hospital were possibly interested. In an effort to reevaluate this section of Highway 10 and the issues involved with the properties located on both sides of the highway, the EDA approved a study which was completed by SRF Consulting in early 1997. As a result of the study it was determined that the best possible use for the parcels was multi-family and rehabilitation of the existing apartments . One of the key issues that make the parcels difficult for a commercial use is the limited, if not impossible, access off Highway • 10 and limited access off Eastwood. Almost every commercial business needs easy access to be successful.