01-03-2011 HRA MINMEETING OF THE ELK RIVER
• HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JANUARY 3, 20.1 I
Members Present: Chair Wilson, Commissioners Kuester, Lieser, Motin and Toth
Members Absent: None
Staff Present: Economic Development Director Catherine Mehelich, Marketing & Business Development
Administrator Annie Deckert, Recording Secretary Debbie Huebner
Also Present: Hanna Klunmek, Continuum of Care Director, Central MN Housing Partnership
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 January 3, 2011 HRA Agenda
• MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER
KUESTER TO APPROVE THE JANUARY 3, 2011 HRA AGENDA WITH THE
FOLLOWING CHANGES:
ITEM 6. -PRESENTATION BY CENTRAL MN HOUSING PARTNERSHIP -
CONTINUUM OF CARE
ITEM 7. -DISCUSS 2011 HRA GOALS
ITEM 8. -STAFF UPDATES
MOTION CARRIED 5-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER LIESER
TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1. HRA MINUTES
3.2. CHECK REGISTER
3.3. DESIGNATION OF OFFICIAL NEWSPAPER
3.4. DESIGNATION OF OFFICIAL DEPOSITORIES
3.5. APPOINTMENT OF EXECUTIVE DIRECTOR
MOTION CARRIED 5-0.
•
Housing & Redevelopment Authority
January 3, 2011
Page 2
4. Open Mike •
David Raymond, Arts Alliance Chairman of the Board, was present to provide an update on the Arts
Alliance's plans. He stated that architectural renderings have been completed. The Arts Alliance hopes to
raise funds to acquire, renovate and construct an addition on the former First National Bank building at 720
Main Street. The space will be used for area artists to displaytheir work, studio space and office space.
Commissioner Toth asked the total cost of the project as proposed. Mr. Raymond stated that the entire
project is between $2.5 - 3 million. Commissioner Toth asked if theyhave received any comments from the
community. Mr. Raymond stated that they have not received any negative comments. He stated they will
hire a firm to do a feasibilitystudy. If the project is feasible, theywill undertake a capital campaign to raise
funds. He noted that most funding sources require some contribution bythe city. Commissioner Toth
asked if the Arts Alliance will be asking for the HRA's assistance. Mr. Raymond stated that they are not
asking for anything at this time, but that any ideas the HRA has to help the project would be appreciated.
Chair Wilson commended the Arts Alliance for doing due diligence in taking the process one step at a time.
Mr. Raymond stated that a significant amount of fundraising will be needed. He noted that the First National
Bank has been veryhelpful, but felt that theywere not anxious to get the building "off the books". He stated
that the bank could sell the propertytomorrowtosnmeone tomorrow if theyhad a good offer. Mr.
Raymond stated he would keep the HRA posted on the project.
5.1. Annual Meetir~ Election of HRA Chair
MOTION BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER KUESTER
TO REAPPOINT STEWART WILSON HRA CHAIR. MOTION CARRIED 4-0-1. Chair •
Wilson abstained.
5.2. Election of Vice Chair
MOTION BY COMMISSIONER KUESTER AND SECONDED BY COMMISSIONER
LIESER TO REAPOINT LARRY TOTH HRA VICE CHAIR. MOTION CARRIED 4-0-1.
Commissioner Toth abstained.
5.3. Election of Secretary
MOTION BY COMMISSIONER KUESTER AND SECONDED BY COMMISSIONER
MOTIN TO REAPPOINT JEAN LIESER HRA SECRETARY. MOTION CARRIED 4-0-1.
Commissioner Lieser abstained.
6. Presentation by Central MN Housing_Partnership -Continuum of Care
Ms. Deckert introduced Hanna Klimmek from the Central Minnesota Housing Partnership (CNH'). Ms.
Deckert stated that CMHP's Continuum of Care (COGS is a network of organizations, community residents
and businesses with a primary goal of negating homelessness. She noted that Ms. Klimmek has been in
project management for CMF-IP for six years and has been the COC coordinator for the past three years. She
is present to talk about the COC program and how it could benefit the City of Elk River.
Ms. Klimmek stated that C~vIE-Il' serves 16 counties in Central Minnesota. She explained that there are two
sides to the organization; one side is property management -they own and manage properties all over Central •
Minnesota. Theyprovide homeownership education and counseling. Also, they do the small cities
Housing & Redevelopment Authority Page 3
January 3, 2011
• development program -commercial and residential propertyrehab small communities in Central Minnesota.
The CMHI' also administers the NSP program and the COC program CMHP's overall goal is to provide
affordable housing.
Central MN COC covers 14 counties and the City of St. Cloud. She noted that the city of St. Cloud is
separated from the 14 counties, as it is considered a metropolitan area. The COC senses Benton, Cass,
Chisago, Wadena, Crow Wing, Todd, Morrison, Mille Lacs, Kanabec, Pine, Isanti, Stearns, Sherburne and
Wright Counties. She stated that COC meetings are held once a month on the first Tuesday at 1 pm at the
Morrison County Government Center in Little Falls. Two new member orientations are held each year, in
June and November, before the regularly scheduled meeting.
Ms. Klimrrrek stated that the COC currently has 45 organization, agencies and state departments represented.
Examples include HRA's. She noted that the St. Cloud HRA, Morrison CorrntyHRA and Todd County
HRAs are represented so far. She stated theywould like to have HRA's from all communities in Central
Minnesota represented. Rural development, homeless service providers, Minnesota Housing and Minnesota
Department of Human Services, and county representatives are also represented. Ms. Klimmek stated they
would like to get police departments and former homeless persons involved, as well.
Ms. K1uim~ek stated that to become a member, you just need to attend a meeting. Orientation meetings are
not required, but would be helpful Members must attend at least 60 percent of the meetings since the
beginning of a calendar year in order to be a voting member. She stated the purpose of the COC is: 1) to
identifythe size and scope of homelessness in Central Minnesota; identifyresources to address homelessness,
rank a community's needs in order of priority; develop plan services and housing; and, identify resources; and
2) submit applications annual to HUD for McKinneyHomeless Assistance resources. She noted that they
have secured $11,652,330 in funding since 1997 through this application, as well as leveraging over
• $23,000,000 for homeless services housing.
Currently, the Central MN COC provides annual Federal funding for seventeen projects including
transitional housing, permanent support housing, service onlyprojects, and shelter plus care projects. She
noted that the St. Cloud HRA does hold 6 shelter plus care grants within the COC, so theypartner with
mental health in City of St. Cloud in providing units of affordable housing and services to people who were
formerlyhomeless. She also noted that this funding does not fund emergency shelters.
Ms. Klirnmek stated Central Minnesota COC coordinates an annual Point in Time count of homeless
individuals. This count is mandatory by HUD and is done during the last week in January. The COC is
responsible for counting all unsheltered homeless individuals and families in Central Minnesota. She will
request that the Sherburne Countycoordinatorcomact the HRA so that the HRA can be involved in this
count (on January26~). The State Department of Human Services does the count of sheltered homeless.
She stated she was sure there were homeless individuals and families calling for resources in the city.
Ms. Klimmek stated that a 10-year plan to end homelessness in 14 counties was developed in 2008. Some of
the goals were unattainable, so in 2011, theyto revamp the entire plan, with the help of various groups and
volunteers.
Bybecoming a member of COC, the communitycan be represented and mayhave the oppomrnityto receive
funding for homeless services, such as transitional housing, permanent support housing, transitional housing,
or shelter plus care. She feh membership provides a great oppommityfor networking. Members find that
there are all sorts of other organizations at their fingertips that they can send clients to, and can help further
by knowing what other people do within the community. Members also develop stronger partnerships
within the community as well as outside of it. They gain stronger knowledge of programs, services, funding
• resources, events and fundraisers. Meeting schedules, meeting agendas, and minutes of the COC can be
found on their website at www cmhp.net, as well as member contacts and a service matrix describing what
Housing & Redevelopment Authority
January 3, 2011
-----------------------------
Page 4
every organization within COC does. She stated that when becoming a member, people ask how long it takes •
to catch on and she tells them about one year. She stated she is learning new things in her job everyday and
HUD can sometimes make changes very suddenly that they need to respond to.
Chair Wilson stated he was interested in the Point in Time count and how is it conducted. He stated that in
past discussions about homelessness, theyhave wondered howto get information for Elk River and what the
needs are. He asked if the Point in Time count would help and howtheywould find out more. Ms.
Klimmek stated that the count can help. She explained that there is a coordinator for each county in the
COC and StacyEsbolt from Central Muuiesota Housing Partnership will be doing the Sherburne County
count. She will contact anyone who may come in contact with homeless individuals or family, including the
police department, school district, Salvation Army, and the HRA can be added to the list. There is a survey
that is sent to every organization that will be participating. On January 26, anyone requesting services will
simply be asked where theyare staying tonight. If they are staying outside or anyplace that is uninhabitable,
theywill be counted. Last year there were six homeless individual counted. Ms. Klimniek felt that no matter
what, the count is not going to be realistic, because some individuals don't want to be found or don't seek
services, for whatever reason. Ms. Klimmek noted that last year the organizations experienced burned out,
since there were three surveys going on at once.
Commissioner Toth stated that if homelessness was reported to county, and the citybecame involved, would
there be duplication. Ms. Klirruliek stated that they try to avoid duplication by asking for initials and date of
birth. Commissioner Toth asked if citystaff should be spending time on this, if the county is supposed to be
doing it. Ms. Klinunek stated that the city is in the county and any reports the city receives would help
provide a more accurate count. She stated that it is up to the HRA whether or not they wish to participate.
Commissioner Kuester questioned whythe count is for only one night of the year. Ms. Klinunek explained •
that HUD wants to see snapshot of nation for one night of the year in January. Ms. Klinunek stated she felt
it was a temble time to do the count in Minnesota, and that theyhave tried three times to get date changed.
She noted theyplan to do count themselves in July, but likely not this year as it is a huge task
Commissioner Kuester asked if the definition of homeless included sleeping in a car. Ms. Kliinmek stated
yes, and any building without utilities. Commissioner Kuester asked if youth that are. out on the streets are
counted. Ms. Klimmek stated yes. She stated that the survey does not take into account persons who have
no home and are simply moving from place to place, staying with overnight wherever they can on a
temporarybasis.
Ms. Klimmek noted that on any given night in Minnesota there are 13,100 people who are homeless, and a
large portion are children. Commissioner Toth stated that the majority of those are likely in the metro. Ms.
Kliinmek stated that a large portion are in the metro, but rural homelessness is a huge problem She
explained that approximatelytwo years ago, she met with each of the county commission boards in Central
Minnesota in order to gain support for the 10-Year Plan to End Homelessness. She stated she was shocked
at the number of county commissioners who told her there were no homeless people in their county. She
stated that this perception is an ongoing problem they are trying to break through. Ms. Klunmek stated there
are homeless people living in the woods in campsites and now is a temble time for them.
Ms. Mehelich asked if there is a representative from Sherburne County involved in COC now Ms. Klimmek
stated she has spoken with Allissa Evanson of Sherburne County, but she has not yet been able to attend a
meeting. Ms. Mehelich asked if the Central MN COC was linked into astate-wide CGC. Ms. Klimmek
stated there are 11 COC's in the state.
Commissioner Lieser asked if the 13,100 homeless in Minnesota were in shelters or unsheltered. Ms.
Klunmek stated the number is a count of both She stated all the shelters are full and there is not enough •
shelter. Many of the homeless are "couch hopping" from friend to friend, relative to relative. She stated this
does not last very long, bridges are burned, and they find themselves out on the streets. She noted that a lot
Housing & Redevelopment Authority
January 3, 2011
-----------------------------
Page 5
of people camp all sun-nner long and will call services in August when kids are getting readyto go back to
• school, so there are many are unsheltered.
Chair Wilson asked for an example of a project that she has worked on with a communirythat has resulted in
a structure being built. Ms. Kliinrnek stated that Center City Housing developed River Crest Apartments.
She stated the City of St. Cloud had a huge battle with Center City Housing with many issues. Eventually, the
project was approved fora 40-unit building on the southeast side of St. Cloud. The project houses 40
individuals with chemical dependency issues. The COCwas able to give them $100,000 in operating funds,
and theywill receive this on an annual basis. Chair Wilson asked who runs River Crest and if they are non-
profit. Ms. Kliinrnek stated Center City Housing sponsored the project and is anon-profit. She noted that
Center City Housing also has the new San Marco in Duluth for chronic inebriates and they are building
another project in Rochester.
Ms. Deckert asked if Center City Housing contacted them, or howwas the need identified Ms. Klimmek
stated that Center City Housing is a non profit developer that became involved in the Duluth project when
they found there was federal funding available for this cause through the COC. She explained that Center
CiryHousing began coming to their meetings for over a year, and stated theywould like to be a part of their
next funding competition.
Chair Wilson asked about projects in smaller cities. Ms. Klimmek stated there is a transitional housing with
permanent support project in Cass County (Walker, MIS. Also, in Little Falls there are scattered site leasing
programs through Life and Recovery. She noted there is a NewPathways project in Cambridge, and New
Pathways in a transitional program in Brainerd. She explained that they have services in every cotuirythat the
COC serves.
• Commissioner Toth asked if the projects were sponsored bycities or counties. Ms. K limmek stated that a
city or county or both can partner with an agency or organization to receive a grant.
Chair Wilson stated that it is his understanding that if a non-profit agency saw a need, they would come up
with a plan and its costs, request funding, and hopefully, then build a project. Ms. Kliiiunek stated that was
correct. As an example, if Sherburne-Wright County Salvation Armywanted to do a project such as a shelter
plus care, the HRA could partner with them to get the project completed, and the services would be provided
the Salvation Army.
Ms. Mehelich stated that staff could attend a couple of the COC meetings to see if there was anything of
interest to the city. Commissioner Motin stated he felt the county should participate in the COC, since they
are the agencythat provides services.
Ms. Mehelich stated that staff could checkwith counrystaff to make sure the cirywas being represented by
either human services or the county commission.
7. Discuss 2011 HRA Goals
Ms. Mehelich reviewed the 2010 HRA goals, projects and highlights. She then discussed the preliminary list
of 2011 goals and projects which was developed consistent with the 2011 HRA approved budget. She asked
for input from the HRA on any additional goals they may have.
Commissioner Toth asked if the former Saxon/AmericInn site was in need of assistance, since this area
seems desolate. Ms. Mehelich stated she has received no requests from the property owners. Chair Wilson
stated that he also feels there are various areas of the city's corridors in need of redevelopment.
Commissioner Motin stated that he is aware of discussions for use of the former hotel aslong-term rental
Housing & Redevelopment Authority
January 3, 2011
Page 6
housing; or, as an assisted living/nursing facility. He stated that due to access issues, the propertyuse needs •
to be a "destination" type business.
Chair Wilson suggested a discussion of the management of 716 and 720 Main Street as a goal He stated that
the propertywas purchased for a future parking project, but he felt it would be appropriate to have a
discussion on the site. Ms. Mehelich stated that staff will continue to update the HRA on issues associated
with the properties. Further discussion followed on the 716 and 720 Main properties.
Chair Wilson suggested that continued foreclosure prevention efforts be added to the 2011 goals.
Ms. Mehelich asked that the HRA send staff any other goals theyfelt were appropriate.
8. CRher Business
Ms. Deckert stated that she will be speaking at the second foreclosure forum to be held on January 15th at the
Elk River YMCA from gam - 11am. She also noted she will speak at the Three River's Area Citizens League
on January 19 at Perkins Restaurant.
Ms. Mehelich noted that a communitymeeting will be held at Riverside Church in Big Lake on January 13,
2011 from 7pm 9pm to discuss development of an emergency shelter program. The communities of Elk
River, Big Lake, Monticello, Zimmemlan, Princeton, C+tsego and Rogers will be included in this network
Ms. Mehelich stated that Minnwest provides staff updates on The Bluffs. She stated that 16 of the 67 units
have been finished and 10 have been rented out. Minnwest has obtained landlord licensing from the city.
They propose to finish 6 more units to rent out for a total of 22 units. The leases are primarily one-year
leases. She noted that Minnwest has stated theyhave no intention of dissolving the condominium •
homeowners association. Commissioner Toth asked if the rental units can be purchased. Ms. Mehelich
stated yes. Commissioner Motin asked if there was a time limit that the units could be rented out. Ms.
Mehelich stated she would research his question and get back to him.
9. Adjournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:30 p.m.
Minutes prepared by Debbie Huebner.
Tina Allard
City Clerk
t
._ ,
Stewart Wilson
Chair, Housing and Redevelopment Authority