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EDC studies leasing of 213 Prairie to temporarily house displaced small businesses
Summary
Staff presented a proposal to retain and rehabilitate city-owned 213 Prairie as short-term leased space for displaced small businesses; preliminary site-prep estimates include about $18,000 for exterior cleanup and about $35,000 to build a parking lot. Board asked staff to prepare a project packet and cost estimates.
Board members discussed retaining 213 Prairie under MEDC ownership to lease space to displaced small businesses. Staff said the building remains on the market and two buyers had shown interest, but the EDC could elect to keep and lease the property to provide transitory commercial space.
Staff provided preliminary cost estimates: approximately $18,000 to clean up the building exterior and about $35,000 to prepare and pave a parking lot. A board member said the city would have to be prepared to put up roughly $832,000 to purchase the property (or finance it), though that figure was referenced as an approximate city-council-level financing number rather than a final sales price. Board members discussed financing options, including city financing over multiple years and possible internal financing terms near recent municipal bond yields; a 3.6% figure was mentioned in the conversation as an expected municipal financing rate.
Board discussion emphasized two points: any EDC lease must be advertised as fair-market and competitive, and the board could consider time-limited rent-subsidy assistance (examples discussed: 70% first-year, 50% second-year steps) for displaced tenants but should not promise guaranteed tenancy. Staff was directed to bring back a formal project packet with firm cost estimates, a not-to-exceed amount for site preparation, recommended lease terms, and management options for the building.
The board did not adopt a formal resolution on the item; members asked staff to return the item as a full project with more precise pricing and a recommended implementation plan.
