01-28-2008 - Laserfiche WebLink

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A revised version of the application is attached, which includes a letter of commitment from Master Development. As a reminder, the EDA would need to provide a local match if the grant funds are received. To clarify, at least one half of the costs associated with the acquisition and redevelopment of Robert’s would need to be paid by the EDA, or funds available to the EDA, which means that Master Development or another developer can provide the match. Staff is suggesting that the EDA apply for $510,000 of DEED grant funds, which would assist Master Development or another developer to purchase Robert’s at an appropriate price (not the asking price). The funds would also be used for demolition and site improvements. The grant application is based on the partnership between Master Development and the EDA; however redevelopment complexities often lead to partnership changes. Such a change would not necessarily jeopardize the receipt of the grant dollars. If grant funds are received and changes occur, the EDA and DEED would work together to revise the grant agreement. Next Steps If the EDA authorizes staff to do so, the DEED grant application would be submitted with cosmetic changes (“draft” stamp would be removed, exhibit numbers would be added, etc.) by February 1st, which is the exact due date of the application. Master Development or another developer may chose to begin negotiations with the Robert’s property owner contingent upon the potential grant award, which is anticipated for mid- March. Summary The Minnesota State Legislature did not create Tax Increment Financing laws or grant programs to unnecessarily profit private developers but rather to facilitate redevelopment that would not otherwise occur but for the assistance. At this time, staff feels that Robert’s will not be redeveloped without public assistance given the added cost presented by the building demolition and removal of the impervious surface, which covers the property. Recommendation: Staff recommends that the EDA consider approving Resolution 08-EDA-239, a Resolution Authorizing the Submission of a Redevelopment Grant Application for the Acquisition and Redevelopment of 2400 County Road H2. Furthermore, staff is requesting authorization to obtain feedback from property owners located adjacent to the area regarding the potential vacation of a portion of Greenfield Avenue as shown on the attached site map.