06-06-2011 HRA MINMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE 6, 201 I
Members Present: Chair Wilson, Corruiussioners Kuester, Lieser, Motin and Toth
Members Absent: None
Staff Present: Director of Economic Development Annie Decker, Recording Secretary
Debbie Huebner
Also Present: Lance Lindberg, Heritage Preservation Commission Chair
1. 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.
Consider June 6, 2011 HRA Agenda
MOVED BY COMMISSIONER TOTH AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE JUNE 6, 2011 HRA AGENDA
• AS PRESENTED. MOTION CARRIED 5-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER KUESTER AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. MAY 2, 2011 REGULAR HRA MEETING MINUTES
3.2. CHECK REGISTER
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
3.5. APPOINTMENT OF EXECUTIVE DIRECTOR
MOTION CARRIED 5-0.
4. Open Mike - No one appeared for Open Mike.
5. Discussion for long term intent of HRA buildings with Heritage Preservation Commission -
716 and 720 Main Street
Ms. Deckert explained that the Heritage Preservation Commission (EIl'C~ requested a
discussion with the HRA regarding preservation of the 716 and 720 Main Street buildings.
Housing & Redevelopment Authority
June 6, 2011
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Lance Lindberg, HPC Chair, stated that the HPC is concerned with the future removal of
these building, as theyfeel theyhave historic value. He stated that the buildings add to the
character of the downtown and could add to economy byproviding alocation for astart-up
business. He also felt the integrity of the meat market would change if the buildings were
removed. Mr. Lindberg reviewed reasons for preserving and restoring historic buildings, as
provided in a presentation to the HPC by Bonnie McDonald of the Preservation Alliance of
Minnesota on Apri121, 2011.
Mr. Lindberg stated that even though there are buildings older than these in the downtown,
these buildings add to the feel of a historic downtown.
Chair Wilson stated that the status of the buildings was well-known when purchased bythe
HRA for future parking.
Mr. Lindberg stated he personally did not see a parking issue in the downtown now He
asked if the HRA reallyforesees a need for more parking, since no one knows when the
downtown will fill with businesses. Ckrair Wilson sated that business owners in the
downtown do have a concern there will not be adequate parking when business space begins
to fill in. He stated that the HRA's intent for these properties was to plan for future parking.
Commissioner Motin stated that he realizes the property is not needed for parking now, but
as buildings fill up, there will be a need for more parking. He stated that the costs of rehab
are not less than demolition, but are more. He noted that just to re-roof the buildings would
cost $45,000. Also, there would be significant costs to abate the asbestos in the buildings.
Commissioner Motin noted that a historical context study was previous completed which
determined the buildings have not historical significance. He stated that the propertywill •
eventually be needed for parking, in order to preserve the viability of the businesses in the
downtown.. Mr. Lindberg asked if the businesses feel they need more parking.
Commissioner Motin stated yes.
Commissioner Toth stated that the main concern of the businesses is parking for their
clientele. He stated that he believes there is no common wall between the 720 Main Street
building and Elk River Meats. He felt that parking is an important issue for potential
businesses looking at locating in the downtown. Mr. Lindberg stated that people perceive
there is a parking problem in the downtown if they can't park in a spot right in front of the
building theywish to go to.
Ms. Deckert stated that a wall agreement with Elk River Meats was found when doing the
title work for the property purchase.
Debra Mortenson, Heritage Preservation Commissioner -stated she was also a taxpayer and
resident of Elk River. She stated that Elk River's downtown is very small and there are not a
lot of historical buildings left. She felt that parking wasn't an issue and she agreed with Mr.
Lindberg that business owners perceive a parking problem if clients can't park right next to
their businesses. She stated that the onlytime she has had trouble finding a parking space in
the downtown is during the Thursday night concerts in the park She felt it does not make
sense to tear down a building that could be a potential business, since a parking lot does not
generate income. She stated that the city needs to evaluate its spending, since her taxes go
up every year.
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June 6, 2011
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Commissioner Toth stated that the cityportion of her taxes do not go up everyyear.
Commissioner Lieser concurred, stating that increases in taxes are generally school district
issues.
Mr. Lindberg asked how manyparking stalls would be added. Conunissioner Motin stated
that 21 spaces would be created, and if tiered there would be over 40 spaces.
Chair Wilson stated that putting out RFP's for potential businesses for the properties would
be in direct contrast to the HRA's goal to reserve the site for future parking needs.
Commissioner Motin stated that the City Council chose to purchase the parking lot across
the street from the site to preserve parking in the downtown, as well. He stated that it would
be conflict to tryto preserve the buildings.
Chair Wilson thanked the HI'C representatives for their input.
6. Consider lease extension for Arts Alliance - 716 Main Street
David Raymond, representative of the Elk River Arts Alliance, 716 Main Street, stated that
Arts Alliance would like to extend their lease with the HRA.
Ms. Deckert provided background information regarding leasing of the propertyto the Arts
Alliance, as detailed in her memo to the HRA dated June 6, 2011.
Commissioner Lieser asked if the Arts Alliance paid part of the maintenance costs for the
building. Ms. Deckert stated yes, the Arts Alliance pays a share of anycosts over $1,000.
Commissioner Toth asked if the Arts Alliance was interested in a 1 or 2-year lease. Mr.
Raymond stated that theywould prefer a 2-year lease, but would accept a 1-year lease. Mr.
Raymond explained that the Arts Alliance continues to explore their options for relocating.
He noted that the former First National Bank proposal is still just a concept and no formal
agreement has been worked out.
Commissioner Toth asked if more parking would be needed for the First National site. Mr.
Raymond stated yes, but that most events would be in the evening, when there is less
demand for parking in the downtown. He felt that parking for this site would be adequate,
assuming the adjacent city lot would be available to them.
Commissioner Toth stated he was not opposed to a 2-year lease, since the lease includes an
option to cancel the lease, with a 6-month notice.
Ms. Deckert stated that the proposed 1-year lease does not include an automatic extension.
Commissioner Motin stated that he supported a 1-year lease, which could be renewed if
needed. He felt a 1-year lease puts the city in better standing, and has an end date. Mr.
Raymond stated that the Arts Alliance would be comfortable with a 1-year lease if they could
have the opportunityto renewthe lease next year.
Chair Wilson stated that the HRA has had a good relationship with the Arts Alliance and
that having them in the downtown has been a positive experience. He stated that the HRA
• will continue to keep the Arts Alliance informed of their standing when the 1-year lease is
up.
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Housing & Redevelopment Authority
June 6, 2011
Page 4
MOTION BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO AUTHORIZE A 1-YEAR LEASE EXTENSION
WITH THE ELK RIVER AREA ARTS ALLIANCE FOR 716 MAIN STREET
UNDER THE CURRENT LEASE TERMS. MOTION CARRIED 5-0.
7. 2011 Vision/Goals Update
Ms. Deckert reviewed highlights of her memo to the HRA regarding the 2011 Vision and
Goals process. Commissioner Toth asked if the previous Downtown Task Force members
would be contacted to serve, regarding completion of the downtown plan. Commissioner
Morin stated yes, they would be contacted to see if they are still interested or able to serve,
and the Council will appointment members to fill in as needed
Commissioner Kuester asked if there were any other tasks for the HRA Discussion
followed regarding assignment of tasks such as streetscapes and blighted neighborhoods, and
expanding communications.
Branding Update
Ms. Deckert provided an update of the branding process and timeline as detailed in her
memo dated June 6, 2011. She explained that the results of the research will be used to
develop and implement a 2-year plan. Ms. Deckert noted that online surveys are due June
15th,
9. CRher Business •
Information on Art Soup and the appointment of Annie Deckert as HRA and EDA
Director were noted.
10. Adjournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:20 p.m
Minutes p pared by~D, ebb' bner.
Tina Allard
City Clerk
~-,
tewart Wilson
Chair, Housing and Redevelopment Authority