4.6. SR 07-21-2003MEMORANDUM
TO:
FROM:
DATE:
Mayor and City Council
Pat Klaers, City Administr~
July 21, 2003
SUBJECT: Transitional Housing Proposal
Item ~ *4.6.*
On June 23, 2003, the City Council tabled the transitional housing motion to the July 14, 2003
Council meeting. At the July 14, 2003 Council meeting, this motion was tabled to the July 21, 2003
meeting due to the fact that all five Councilmembers were not present.
The issue being discussed and considered relates to whether or not the city should allow Love Elk
River to lease the Bailey house for transitional housing. As everyone knows, we are doing this with
the house that the city owns directly north of the golf course. With the Bailey house there are a
number of issues which the Council discussed and considered including whether or not the city
should be furthering its participation in this type of social service program and whether or not the
city should be doing everything it can to be adding funds for the library expansion.
The motion before the Council is as stated in the attached approved June 23, 2003 City Council
minutes.
S:\COUNCIL~Pat\2003\baileyhouse721.doc
City Council Mir/utes
June 23, 2003
-777' ......................
4. HR-q Downtown Revitalization Proiect
Page 2
Director of Econormc Development Catherine Mehelich stated that kh~ Housing and
Redevelol2ment Authorit7 has been working with MetroPlams fo~ past six months to
rede£me t~he downtown redevelopment plan. Ms. Mehelich sta~at as directed by the
HtL~_, MetroPlains held an open house for the public to vie ,x~e proposed downtown
designs. Ms. Mehelich stated that at this time, MetroPlaink~seeking Council input and ~
seek formal approval at a later date. t~?;'~
Vern Hanson of MetroPlams, M. ichele Mongeon o~-}G Architects, and Jim Prosser of
Ehlers & Associates,provided the Ciw Council ~ a presentation which included an
overview City s project goals, a presenta~'n of redevelopment concepts, and an
overview ~cial and market feasib~ issues regarding the project.
Councilmember tz questioned if has held discussions w/th the property
owners that will be by the r ~ment and whether they have an agreement on
sale and price. Mr. ;on Stated they have had discussions with property owners but
that purchase agreem~ on a development agreement with the HKA.
Counc/Lmember ow the critical mass of businesses would be preserved during
the two years of construc] Mr. Hanson stated that there would be ample displacement
parking and access to b would remain open during construction.
Catherine Mehelich,.$(~ated that s'~.f received comment forms back from residents and
business owners md the major ccJ~erns seem to be parking and the use of the Jackson
to the HRA MOnday, June 30 at thei~:~ecial meeting.
Mayor Klinzing stated that she hkes the ~lan,: has heard support for the plan from
downtown business owners, and that the ~roject is needed to keep Elk River competitive
with neighboring communities. ':':;
City Administrator Pat 1,2Iaers indicated that MetroPlains will be applying for a once a year
grant from the NiN Housing Finance Agency. ~. I~aers stated that the grant must be
submitted by July 24, 2003 and MetroPlams will dome before the Council on July 14 with a
memorandum of understanding that the city is committed to the development of Jackson
Square and the downtown and is wil.ling to form a partnership with MetroPlams.
Vern Hanson indicated that the local banks will be asked to display the model of the
proposed downtown redevelopment in their lobbies for everyone to view.
5. Open Mike
No one appeared for open mike.
Transitional Housing Program
City Administrator Pat I(2aers indicated that the city xvill be taking possession of a house
near the library soon and the Mayor has asked the city to consider allowing this house to be
used for the Love Elk River transitional housing program. Mr. IGaers stated that the ci~
currendy owns a house north of the golf course that is leased to Harvest Evangelism dba
Love Elk River for use with the transitional housing program. The city receives $300 a
City Council Minutes Page 3
June 23, 2003
month rent for this house which basically only covers the taxes on the property,. Mr. Klaers
stated that based on the information he received from Mel Beaudry of Remax, the city could
receive an,v'where from $1000-$1200 a month rent for tNis house, providing all appliances,
heating, and ak conditioning is functioning properly. It was noted that the rooms in the
basement would need to be evaluated to see if they meet code for use as bedrooms. Mr.
Klaers stated that if this house is leased to Love Elk Purer, the appropriate rent amount
would need to be determined. It was noted that the city would receive substantially less
money per month if the city leased the house to Love Elk River rather than renting it out in
the market.
Mayor I~-3inzing ac -knowledged that d-ds is a larger house and would cost more to keep up.
Mayor Klinzing indicated that she does not believe that the city should be in the rental
property business. Mayor Klinzing stated that if the house is leased to Love Elk River, there
is a committee that would govern the house and would take care of everything. Mayor
Iq. linzing noted that the family that is in the house north of the golf course is doing well and
hopes to move on by spring so the house will be open to a new family.
Councilmemb~r Kuester questioned if Sherburne County currendy provides any form of
subsidized housing. Mayor I~dinzing stated that the county has programs to assist people on
a short-term basis but that subsidized housing is handled through the I-LKA in St. Cloud.
Councilmember Kuester stated that she likes the concept of the transitional housing but is
not sure she's comfortable with the city performing social service work.
Counciknember Diem questioned if the city rented the house out for the going rate of
$1000-$1200, if there would be a high turnover rate because people could purchase a house
for that amount. Councilmember Motto stated that he believes that some people prefer to
rent a house rather than buy.
Councilmember Dietz also questioned if because the city used library funds to purchase the
house, if the rent proceeds would go back into the library fund for the future library
expansion. Mr. Klaers stated that this is a logical recommendation but it would be the
Council's decision.
Council_member Tveite stated that he believes that it would be worth it to receive less money
by leasing the property to Love Elk River because they would be the ones dealing with the
frustrations of rental property.
Councilmember Motin questioned if four to five years for the library expansion to take place
was a good estimate. Mr. I~aers stated that it was a good estimate. Councilmember Motto
stated that if the time before the expansion was shorter he would support the city allowing
the house to be used for transitional housing but since it will be four to five years, he
supports the city renting the property. He stated that the city would lose approximately
$40,000 over the five years by renting the proper~ to Love Elk River. Coundlmember
Mot_in stated that he supports putting the money back into the library fund.
MAYOR KLINZING MOVED TO LEASE THE BAILEY HOUSE TO HARVEST
EVANGELISM DBA LOVE ELK RIVER FOR ONE YEAR TO BE USED FOR
TRANSITIONAL HOUSING WITH A SIMILAR LEASE AGREEMENT TO
THE HOUSE NORTH OF THE GOLF COURSE CURRENTLY BEING
LEASED BY LOVE ELK RIVER WITH THE RENT AMOUNT TO BE SET BY
THE CITY. COUNCILMEMBER TVEITE SECONDED THE MOTION.
City Coundl Minutes
Jtme 23, 2003
Council discussion on a lease Umeframe took place.
Page 4
COUNCILMEMBER MOTIN MOVED TO TABLE THE BAILEY HOUSE
LEASE MOTION UNTIL THE JULY 14, 2003 MEETING IN ORDER TO
OBTAIN ADDITIONAL FIGURES AND MORE INFORMATION ON THE
BASEMENT CONDITION. COUNCILMEMBER ICL;ESTER SECONDED THE
MOTION. THE MOTION CARRIED 4-1. Counci,Lmember Tveite opposed.
6.2. 2:00 a.m. Bar Closing Le~slation
6.3.
was approved
that the law goes into effect
be open until 2:00 a.m. the
stated that if the Council
informing them that they
from the city and a permit cannot
:ed fllat each bar would have the
open until 2:00 a.m.
City Administrator Pat Klaers stated that the 2:00 a.m. bar
and signed into law by Governor Pawlenty. Mr. I4daers stat
July 1, 2003 and in order for the local liquor es
city m~t fu:st change its ordinance ma -krug it legal Mr.
agrees, ~ff would send a letter to all local liquor e:;ta}
cannot st~open until 2:00 a.m. until they obtain ape:
be obtaine~nfil die ordinance is changed. Mr. I~aer,'
ultimate dec~n on whether or not they choose to
It was the cons~s of the City Council to direct ~ff to send letters to the local liquor
establishments, to ~i[t~cuss the ordinance change ~:~the July 14, 2003 City Council meedng,
and to invite the loca~.uor establishment ow~s to the July 14 meeting.
Consider Shooting/Gun ~t~ge Kecluest
City AchaTinistrator Pat I43aers S~ed that ~e bid for the mechanical system of the
th¢/tity would have to go out for bids again for the
shooting/gun range is still good 13~.
"guts" of the system.
Sheriff Anderson was in attendance=lo V~e his support for the ciW completing the
shooting/gun range. Sheriff And~on stae:~,~ that forming a parrnersh~p and shanng a range
was discussed a couple years ago~ but it was :~cided that the departments have different
needs in a range. The Sheriff also stated that h~ ,vcould like to build a range in the future but
he has no idea of where or wlaen that would tak~,~, lace. Sheriff Anderson indicated that he
believes the Elk River Polic, Department has a n~ for their own range and it would be in
the best interest of the ciwto complete it at ti'ds timt.
Councilmembers Kuest~r and Motin expressed their COncern about possible competition if
the city were to rent th~ range out to other department~ or to citizens. Sheriff Anderson
stated that he would X~ork with the city if a conflict arose.
Police ChiefJeffBeahen stated that the cit3, committed a long time ago to building the shell
of the range and h~ would like to see it followed through and the range be completed at this
ti.me.
Councilmember Tveite stated he believes it would be worth it to complete the range now as
the savings would grow as the department grows.
Councilmember Dietz stated that the money for the shell has already been spent and that
the entire thing may as well be completed.
River
MEMORANDUM
Item 6. I.
TO: Mayor and City Council
FROM: Pat Klaers, ~j~ ~d~~r
DATE: ........,.~i .,J~; 2,.~*i:i0031,"~i ~
SUBJECT: Transitional Housing Program
Mayor IG/nzing has been the main contact for the city with the transitional housing program.
Harvest Evangehsm, dba, Love Ell River is managing the transitional housing program. This
organization is currently leasing the city single-family home and property directly north of the golf
course. In February and in May 2003, the Mayor provided an update to the Council on the status of
this project. In May the Mayor also asked for Council consideration to allow Love Elk River to use
the Bailey house for the transitional housing program beginning sometime after Labor Day.
At the May 12, 2003, City Council meeting, the Council asked for more information on what the
going rate would be for renting out the Bailey house on the open market. In this regard, I contacted
Mel Beaudry (ReMax) who has done some work with the city in the past and is familiar with the
Bailey House. In fact, in 1997 Mr. Beaudry was involved in helping the city purchase the Faye
Ryding house that was on the corner (next to the Bailey property) and which is now part of the
library parking lot. Feedback from Mr. Beaudry indicates that assuming all the appliances, heating,
air conditioning, etc. are functioning properly, the house could easily rent for $1000 - $1200, as there
is a high demand for this type of housing. One thing that would need to be evaluated is whether or
not all of the rooms in the basement could be used as bedrooms depending upon the fire code
requirements for exits.
The city receives $300 per month rent for the house north of the golf course. This covers our taxes
but not much else. In general, the city is offering the golf course house at cost in order to assist the
transitional housing program. With the Bailey house we would again have to cover our taxes and we
also would like to obtain slightly more than this base amount in order to cover expenses such as
replacement of the furnace or the air conditiomng system. It is impossible to determine how much
above the tax amount would be appropriate until we get into the house to evaluate the systems.
S:~COUNCIL~Pat~2003X, baileyhouse.doc