Agenda - Economic Development Authority - 07/18/2013

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Management Analyst Brama advised the EDA previously indicated it was interested in pursuing a marketing package for this node and the ownership group has expressed an interest in a marketing package. He requested permission from the EDA to obtain proposals for a marketing package to present to the EDA for review. Member LeTourneau noted that the staff report includes information regarding current property owners, maps, and financial assistance options and suggested publicizing this information on the City's website as a form of marketing package instead of going out and paying for something. He added he felt the stakeholders should participate in the distribution and cost of any marketing package. Management Analyst Brama agreed to prepare a revised marketing information package for review by the EDA at its next meeting. He indicated the City has limited capability from a marketing perspective and asked the EDA to consider listing with a broker or someone with a larger reach for investors. He agreed to present the EDA with options regarding marketing at its next meeting. Chairperson Steffen stated he would like to see the owners agree to list the site together with one sign and one broker and requested that staff discuss this with the ownership group. City Administrator Ulrich indicated that a potential compromise that could add value is to clear the site and consolidate the parcels for sale. He stated the EDA could front the money to clear the site if the property owners agreed to list the site with one realtor and sell it as a block. He stated the City could also offer assistance with demolition costs. Member Williams felt that offering any demolition assistance and/or incenting the property owners to work together needs to be part of a bigger plan and felt the property owners and brokers should be leading that effort, adding the EDA's appropriate role is as a facilitator. Management Analyst Brama stated that one DEED program allows a 50% match to a developer or city to demolish buildings to redevelop a parcel and the City could get a grant for eligible costs. He stated another DEED program includes a loan program from the State to purchase and demolish properties. He stated if the City were able to redevelop the north side, half the loan would be forgiven and a benefit of the loan program is that the City would not have to make repayment for two years. He added the grant program would be advertised through the marketing package and the demolition costs for the three buildings could be part of the marketing package. Member Brunt stated it was his impression that the EDA agreed that a housing development in this area would lead to a better performing commercial node that included both the north and south side. He expressed concern that the Rum River Hills proposal is for the south side only and felt that any development proposal has to include both the north and south sides. He asked if the Rum River Hills representatives understand that the EDA wants a development proposal for the entire site. Chairperson Steffen stated the Rum River Hills representatives know something has to happen on the north side, adding he did not think it has to be one developer for the whole site. He stated Economic Development Authority/July 11, 2013 Page 5 of 7