05-02-2011 HRA MINMEETING OF THE ELK RIVER
• HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 2, 201 1
Members Present: Chair Wilson, Commissioners Lieser and Toth. Commissioner Koester arrived at
approximately 5:35 p.m.
Members Absent: Commissioner Motin
Staff Present: Economic Development Director Catherine Mehelich and Marketing and Business
Development Administrator Annie Deckert
Also Present:
L Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment
Authoritywas called to order at 5:30 p.m. by Chair Wilson.
2. Consider May 2, 2011 HRA Agenda
MOVED BY COMMISSIONER LEISER AND SECONDED BY COMMISSIONER
TOTH TO APPROVE THE MAY 2, 2011 HRA AGENDA AS PRESENTED.
• MOTION CARRIED 3-0.
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. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 3-0.
4. en Mike
No one appeared for Open Mike.
5.1. Consider TIF Fund Request - Elk River Pizza Ranch
5.2. Consider TIF 16 Interfund Loan Resolution
Ms. Mehelich provided background information regarding the TIF 16 District, as well as the request
by Robert McDonald for financial assistance for a proposed Pizza Ranch restaurant project. She
explained that the HRA authorized staff to work with the applicant on a low interest loan of up to
• $90,000 from the TIF 16 Fund to assist with the project. A loan is proposed with a fixed interest
rate of 2%, with a 10-year amortization and 5-year balloon payment. Ms. Mehelich noted that the
terms are consistent with the EDA's Micro Loan Fund, and secured by a mortgage and personal •
guarantee of the owners. She explained that the Loan Agreement requires the creation of a
minimum of 4 full time equivalent positions at $15 per hour wage within 2 years of project
completion. Also, construction much commence before July 1, 2011, per the Spending Plan and
statute authorizing use of the TIF funds.
Ms. Mehelich reviewed the details of the loan and process for funding the loan. She asked that the
HRA consider the resolution at this time.
Commissioner Lieser suggested $12 per hour wage be used in the Spending Plan. It was the
consensus of the HRA to use this number.
Chair Wilson asked if this loan will impact other financing the applicant has in place. Ms. Mehelich
stated that the loan would be subordinate to the mongage. She noted that if the business were sold,
the loan would become due. She noted that loan would be reviewed bythe cites financial attorney.
Ms. Mehelich stated that a site plan has been distributed to the HRA for their review She explained
that the site plan will be reviewed bythe Planning Commission May 10th and bythe City Council on
May 16th. Staff will work with the applicant on any recommendations. Signage will be considered
separately and must meet the cites ordinance requirements for this PUD. She noted that any
substantial changes to this plan must go back to the Planning Commission and City Council. There
is a purchase agreement in place for both the green space from Fast National Bank and the former
Movie Gallerysite.
MOTION BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER •
LIESER TO APPROVE RESOLUTION AUTHORIZING AN INTERFUND LOAN
FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TIF 16
SPENDING PLAN AND AUTHORIZING A LOAN TO ELK RIVER PIZZA RANCH
PROJECT. MOTION CARRIED 4-0.
6. Update on The Bluffs of Elk River
Ms. Mehelich reviewed the letter from the EDA's attorney, Jenny Bouhon of Kennedy & Graven
dazed April 22, 2011. She stated that it is unclear whether or exercising remedies under the
Development Agreement will change the outcome without cooperation from the various parties
involved. She noted that staff will continue to work with the currentlypropertynwner, MinnWest
Bank and developer, MetroPlains to market and maintain the property for its long term intended use
as owner-occupied residential.
7. Presentation on CitvBranding
Ms. Deckert stated that branding is essentially what people say about you behind your back She
provided background information regarding the cit}~s decision to move forward with a branding and
marketing strategy. She explainedthat achy--wide branding campaign is an action step and will
support the Goals that support the Vision approved bythe Council on October 18, 2010.
Ms. Deckert stated that a subcommittee of sixteen people has been created, representing the various
stakeholders in the community. Representatives from city staff, Chamber of Commerce, the
downtown, manufacturing and local development make up the committee. She explained that the •
cites branding consultant, ChandlerThinks, was in Elk River April 27 - 29 to begin market research
for the project, u~ich includes a communitytour, on-on-one intervie~~s with stakeholders, focus
• groups and mystery shops.
Ms. Deckert discussed why branding is important, as well as the process, research methods and
timeline for the project. She stated that the goal is to create a 2-year strategic marketing plan. She
noted that a number of organizations in the communitywill be included in the implementation phase
of the brand.
Commissioner Toth asked if theywill be able to review comments from other cities at some point.
Ms. Deckert stated yes.
Chair Wilson stated he looked forward to completing the process.
Other Business -None
Adjournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:05 p.m.
Minutes prepared b~Debbie Huebner.
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• Tina Allard
City Cle
l
Stewart Wilson
Chair, Housing and Redevelopment Authority
•