05-03-2010 HRA MINMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 3, 2010
Members Present: Chair Wilson, Commissioners Kuester, Lieser and Motin
Members Absent: Commissioner Toth
Staff Present: Director of Economic Development Catherine Mehelich, Economic
Development Assistant Annie Deckers, Finance Director Tim Simon,
Recording Secretary Debbie Huebner
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Housing and
Redevelopment Authority was called to order at 5:30 p.m. by Chair Wilson.
2. Consider May 3, 2010 HRA Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE MAY 3, 2010 HRA AGENDA AS
• PRESENTED. MOTION CARRIED 4-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. MARCH 1, 2010 MINUTES
3.2. CHECK REGISTER
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 4-0.
4. Open Mike - No one appeared for Open Mike
5. Consider Request by Elk River Area Arts Alliance for Use of 720 Main Street Building
Ms. Mehelich explained that the Arts Alliance would like to expand into the 720 Main Street
building. She noted that the Arts Alliance realizes that significant remodeling is necessary,
and that they would be interested in a longer lease term if they are going to make the
improvements. Ms. Mehelich stated that the Arts Alliance proposes to use the additional
space for an auditorium, painting and drawing space, and ceramics.
• John Stander, Executive Director of the Arts Alliance explained that the Arts Alliance has
added two new programs to the existing four programs; a gallery for exhibition and gift
Housing £~ Redevelopment Authority Page 2
May 3, 2010
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shop, and additional art classes, which were previously located at Handke School. He stated •
that the Arts Alliance would like to do a cost analysis this summer and come backto the
HRA in September with a proposal.
Commissioner Lieser asked if the Arts Alliance has checked into renting other space. Mr.
Stander stated theywould like to stay in Elk River. He stated that have also looked at other
areas in Sherburne and Wright Counties. Dave Raymond, Chairman of the Board for the
Arts Alliance, stated that they would like to stay and expand where they are.
Lori Hood stated that she has been with the Arts Alliance for six years and helps run the
classes. She stated that it makes sense for them to staya~rere they are. Ms. Hood stated that
the location has been a boon for their organization, and they have teachers coming from
other cities to teach their craft such as writing, reading, boolffnahrrg, jewelry making, etc.;
thereby increasing their revenues. She explained that the extra space would allowthem to
expand into other areas such as clay, photography and calligraphy.
Chair Wilson stated he encouraged the Arts Alliance to continue researching the possibility
of expansion.
Commissioner Motin stated he had significant reservations about the Arts Alliance
continuing long term at this location. He stated that the HRA purchased the property with
the intention of using the site for a parking facility at some time in the future. He stated he
did not want to see the Arcs Alliance spend moneyfor improvements that they would not
recover. He stated he would not support a lease longer than five years or so. He stated that
he agreed there is a need for the programs the Arts Alliance has to offer.
Chair Wilson stated that the HRA has worked with the Arts Alliance in the past, but that •
they need to look at what they want and how much it will cost. He stated that the HRA
could not consider a long term lease, such as tv,~nryyears.
It was the consensus of the Commission to allow the Arts Alliance to further explore
remodeling of the 720 Main Street building owned bythe HRA.
6. Consider Modification to Tax Increment Financing District # 16
Ms. Mehelich reviewed recent changes in legislation regarding the use of TIF and the impact
on the City's TIF District No. 16. She noted that recent changes will allow deferment of
HRA payments to itself for 2 years in order to preserve approximately4100,000 to finance
an eligible private development. She stated that if the HRA is interested in a project, she
would come back with a list of possible projects the HRA could consider at their June 7th
meeting.
Chair Wilson asked whythe debt is being paid back quicker than expected. Ms. Mehelich
explained that the market value of the First National Financial Center is significant enough
to pay down the HRA's debt obligation (approximately $400,000) quicker.
Commissioner Motin asked what happens to the $100,000 if there is no project. Ms.
Mehelich indicated she would find out from the city attorney. Commissioner Motin asked
if they have closed the opportuniryto benefit from creating the financing tool if no project is
identified or is completed bythe statutory deadline. •
Housing & Redevelopment Authority
May 3, 2010
Page 3
• Commissioner Kuester asked what kind of project could be done, since $100,000 is not a lot
of money to work with. Ms. Mehelich stated that the funds could be used to provide
financing assistance for construction or renovation. She stated that staff could take a look at
needs and come up with a list of possible projects. Commissioner Kuester asked what type
of loan would be utilized. Ms. Mehelich stated that it could be a micro loan or similar type
loan. Commissioner Kuester asked if project could be from a private developer. Ms.
Mehelich stated yes, the statute requires it be provided for private development.
Ms. Mehelich stated that if the Commission has any ideas for possible projects, to contact
staff. Commissioner Kuester asked if the funds could be used for demolition. Ms. Mehelich
stated yes.
Commissioner Motin asked if administrative costs could be submitted for reimbursement.
NIs. Mehelich stated yes. Commissioner Lieser stated she felt this was a good opportunity
which could be beneficial to the community. Chair Wilson stated that there is not a lot
happening in the downtown and a project could help keep the downtown moving forward.
Ms. Mehelich stated that the city is scheduled to receive TIF District # 16 payment in July
and the funds should be set aside now.
It was the consensus of the Commission to move forward with the necessary steps to
modify TIF District # 16 (King and Main) consistent with recent legislation to stimulate
construction or rehabilitation of private development.
7. Other Business
• Ms. Deckert noted that two down payment assistance applications have been received. She
noted that the deadline for use of the NSP funds has been extended to 2013.
Adjournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:15 p.m.
Minutes prepared b~ebbie Huebner.
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Tina Allard
City Clerk
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Stewart Wilson
Chair, Housing and Redevelopment Authority
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