Loading...
01-10-2005 EDA MIN - JOINTJOINT MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY, HOUSING AND REDEVELOPMENT AUTHORITY, AND HERITAGE PRESERVATION COMMISSION HELD AT THE ELK RIVER CITY HALL MONDAY, JANUARY 10, 2005 EDA Members Present: President Gongoll, Commissioners Farber, Gumphrey, Dwyer, Klinzing, Tveite and Motin HRA Members Present: Chair Wilson, Commissioners Kuester, Toth, Lieser and Motin HPC Members Present: Jeff Gongoll, Cliff Lundberg, Bud Houlton, Cindy Olson, Pat Dwyer, Lance Lindberg and Kurt Kragness Staff Present: Building & Environmental Administrator Stephen Rohff; Director of Economic Development Catherine Mehelich, Assistant Director of Economic Development Heidi Steinmetz, City Administrator Pat Klaers, and Recording Secretary Debbie Huebner Historic Districts Desiertation Discussion Mr. Rohlf explained that the purpose of the meeting is to discuss a possible project to engage downtown businesses in restoring and rehabilitating their buildings with financial incentives. He felt communication between the HPC, EDA and HRA was important to prevent conflicts in plans for the downtown. Mr. Rohlf stated incentives would need to be provided if an overlay district were created for a project. He noted that there is very little outside money available for such a project, and that most of the financing would be local (private, banks, etc.) Mr. Rohlf explained that creating a historic district would require a zoning overlay of the existing zoning. He stated that standards would be established for restoration, and the buildings permits would be reviewed by the HPC. He proposed that Tax Rebate Financing would be a possible incentive. Commissioner Klinzing (EDA) asked how large of an area would a district cover. Mr. Rohlf stated that it could be one building or an entire block. Mr. Rohlf noted that by placing a building in a historic district, the property owner could still do what he wanted with the building, but if he accepted the financing incentives, the historic preservation standards would be applied. He stated that no property owner should be forced into being part of a historic district. City Administrator Pat Klaers asked if the EDA could provide incentives without the designation. Mr. Rohlf stated yes. Mr. Rohlf stated that he would like the HPC to meet with the Downtown River's Edge group to discuss the issue. Commissioner Motin (EDA/f-iRA) asked what the benefit would be of the Historic District versus the Old Town District. Mr. Rohlf stated that the Old Town District does not speak to restoration. Economic Development Authority Minutes January 10, 2005 Page 2 Commissioner Kragness (I-P'C) stated that goals of the HPC include (1) educating the citizens regazding the City's historic sites, and (2) to preserve old buildings/sites of historic value, and that a tool is the Historic Overlay Distra. He stated that it has been clearly demonstrated that there is a desire in the community to preserve the downtown, and that there are few great historic assets remaining in the City, which need to be preserved. Commissioner Kragness stated that there is an economic advantage in bringing people to the downtown, and that preservation incentives would improve the property owner's asset. He stated that they would like to layout the vision for the downtown to the property and business owners and encourage them to be a part of the process. He stated that the incentives would provide a tool so that they wouldn't have to make the improvements all by themselves. Commissioner Kragness stated that the process would complement what is already happening in the downtown. Commissioner Kragness stated that by meeting one or more of the 8 criteria for establishment of a district, a site would keep features that can be rehabilitated or restored. He noted that when the Historic Context Srudy was done, some properties which have beautiful architectural features could not be included, because the features were hidden behind facades. Ms. Mehelich stated that the EDA's Redevelopment Financing Program allows up to $50,000 in financing at 2 points lower than prime interest rate, and up to 10 percent of the financing must be used for facades. She noted that State law dictates the use of Tax Abatement and that there is no regulation on what the funds are used for except by city policy. She stated that the rehabilitation/restoration program could be "beefed up" with some type of eligibility standards so that they could see how the dollars are spent. Types of eligible expenses could include signage, facades, code improvements, etc. Commissioner Motion (EDA/HRA) asked what the expectation would be for the Tax Rebate Financing; if it would abate existing taxes or would new taxes be abated in addition to existing. Ms. Mehelich explained that it would not likely increase the tax value significantly on existing property unless it was vastly improved. Mr. Rohlf noted that it would also help keep the property from deteriorating and losing value. Commissioner Klinzing (EDA) stated that her concern is the impact on the downtown businesses and the economic viability of the downtown. She stated that it is difficult for the business owners to re-invest in their buildings. Commissioner Klinzing noted that some buildings have not increased in value in 5 -6 years, and therefore, there is no equity to finance uprovements and the buildings begin to deteriorate. She stated that the downtown owners have already been upset by the current redevelopment project, and that she was concerned how the His[oric Overlay District will affect them. She questioned if the property owners would view this as a way to improve the downtown, or would it be more hoops for them to jump through, and make it more difficult for them to get permits. Mr. Rohlf stated that establishment of historic overlay districts has greatly improved other communities by increasing value. Commissioner Motin (EDA/HRA) stated that he would have a problem with the overlay district unless he felt there was a super majority of the property owners buying into it. Commissioner Kragness (f II'C) stated they would need to made a case to them and educate them about the process. Commissioner Motin stated that what they hear from the land owners may be different from what the business owners have to say. Mr. Rohlf stated that if an area where businesses at both ends wanted the rezoning, but the ones in between did not, it may not be worth rezoning. Economic Development Authority Minutes January 1Q, 2005 Page 3 Commissioner Tveite (EDA) stated that he supports the concept of the overlay. He felt that the key to its success would be to have very specific goals and objectives when an area comes up for review, and that the definitions should be very clear. Mr. Rohlf stated that this would need to be done before approaching the properly owners. Mr. Klaers stated that the Old Town design standards would be in place tmtil a new overlay dis[rict was established. He stated that they would need to determine what was best for the long term goals of the entire city. Commissioner Klinzing (EDA) stated that she did not want the downtown business owners to have the impression that they were "picking on them", and was not sure if this was the time to approach them, given the impact of the Downtown Rivitalization Project. She suggested that they may need time to heal. She noted that the downtown is going to change a great deal in the next 2 years and they should proceed with caution. President Gongoll (EDA) suggested that the HPC talk with the Rivers Edge group to see what their level of interest was, and deternine how to approach a project. He suggested that the language of the ordinance be refined, and to review the financial aspect - how to make the financial incentives attractive, and to refine policies for tools such as the Micro Loan Program. Ms. Mehelich noted that the Rivers Edge group is made up of a number of tenants, and the property owners may not necessarily be represented in this organization. Commissioner Kragness stated that the City of Anoka is well ahead in its historic preservation program, and that the City of Elk River needs to do more research. Mr. Rohlf stated that by meeting with the Rivers Edge group, they would be able to determine if there is interest in fmancial incentives, or if the whole issue is just too sensitive at this time. Commissioner Wilson (I-IRA) stated that they may also see an oppoittuuty. He stated that he felt the incentives that were mentioned ($50,000 Micro Loan) maybe too small, given the cost of relatively minor improvements, such as removing and replacing windows, and that more financtal participauon will be required. Commissioner Toth stated that he would caution restoration of facades on all of the downtown buildings, since some of them are very plain underneath. It was of HRA, EDA and HPC's consensus that another meeting could be held following more research on the issue. 2. Adjournment There being no further business, the meeting adjourned at 6:50 p.m. Sunbmitted by, Debbie Huebner Recording Secretary