6. HPSR 08-18-2011MEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE b, 201 I
Members Present: Chair Wilson, Comnussioners ICuester, Lieser, Moon and Toth
Members Absent: None
Staff Present: Director of Economic Development Annie Deckert, 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 Authority was called to order at 5:30 p.m. by Chair Wilson.
2. 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 gLIESTER 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. Qpen Mike - No one appeared for Open Mike.
5. Diccussion for long term intent of HRA buildings with Heritage Preservation Commission -
716 and 720 Main Street
Ms. Deckert explained that the Heritage Preservation Commission (HPC) requested a
discussion with the HRA regarding preservation of the 716 and 720 Main Street buildings.
Lance Lindberg, HPC Chair, stated that the HPC is concerned with the future removal of
these building, as they feel they have historic value. He stated that the buildings add to the
character of the downtown and could add to economy by providing a location for astart-up
Housing & Redevelopment 1luthonty
June 6, 2011
business. He also felt the integrity of the meat market would change if the buildings were
removed. Mx. 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 by the
HRA for future parking.
Mr. Lindberg stated he personally did not see a pazking issue in the downtown now. He
asked if the HRA really foresees a need for more pazking, since no one knows when the
downtown will fill with businesses. Chair Wilson sated that business owners in the
downtown do have a concern there will not be adequate pazking 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 pazking. He stated that the costs of rehab
aze not less than demolition, but aze 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 wMch
determined the buildings have not historical significance. He stated that the property will
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 pazking.
Commissioner Moon stated yes.
Commissioner Toth stated that the main concern of the businesses is pazking 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 pazking is an important issue fox potential
businesses looking at locating in the downtown. Mx. Lindberg stated that people perceive
there is a pazking problem in the downtown if they can't pazk in a spot right in front of the
building they wish 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 Elli River. She stated that Ell: River's downtown is very small and there aze 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 only time she has had trouble finding a pazking space in
the downtown is during the Thursday night concerts in the park. She felt it does not make
sense to teaz down a building that could be a potential business, since a pazking lot does not
generate income. She stated that the city needs to evaluate its spending, since her taxes go
up every yeaz.
Page 2
Cotmnissioner Toth stated that the city portion of her taxes do not go up every year.
Commissioner Liesex concurred, stating that increases in taxes axe generally school district
issues.
Housing & Redevelopment Authority
Juae G, 2011
Mr. Lindberg asked how many parking stalls would be added. Comtissioner 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 pazking lot across
the street from the site to preserve pazking in the downtown, as well. He stated that it would
be conflict to try to preserve the buildings.
Chair Wilson thanked the HPC representatives for their input.
6. C' ncider lease extension for Arts Alliance - 716 Main Street
David Raymond, representative of the Ell: Rivet Arts Alliance, 716 Main Street, stated that
Arts Alliance would like to extend their lease with the HRA.
Ms. Deckert provided background information regazding leasing of the property to the Arts
Alliance, as detailed in her memo to the HRA dated June 6, 2011.
Commissioner Liesex asked if the Arts Alliance paid part of the maintenance costs for the
building. Ms. Deckert stated yes, the Arts Alliance pays a shaze of any costs over $1,000.
Commissioner Toth asked if the Arts Alliance was interested in a 1 or 2-year lease. Mr.
Raymond stated that they would prefer a 2-yeaz 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 pazking 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.
Cotmissioner Toth stated he was not opposed to a 2-yeaz 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-yeaz 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-yeaz lease if they could
have the opportunity to renew the lease next yeaz.
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-yeaz lease is
up.
Page 3
MOTION BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO AUTHORIZE A 1-YEAR LEASE EXTENSION
Housing & Redevelopment 1,uthorit}'
June 6, 2011
WITH THE ELB RIVER AREA ARTS ALLIANCE FOR 716 MAIN STREET
UNDER THE CURRENT LEASE TERMS. MOTION CARRIED 5-0.
2011 Vision/Goals Update
Ms. Deckert reviewed highlights of her memo to the HRA regarding the 2011 Vision and
Goals process. Coxnxnissioner Toth asked if the previous Downtown Task Force members
would be contacted to serve, regarding completion of the downtown plan. Commissioner
Motin 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.
8. Branding Undate
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 axe due June
15~.
9. Other 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 adjotitned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:20 p.m.
Minutes prepared by Debbie Huebner.
Tina Allard
City Clerk
Page 4
Stewart Wilson
Chair, Housing and Redevelopment Authority
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
June 14, 2011
4.4 Update on 2011 Purchase of a Directional Bore Ri¢
Mark Fuchs discussed the operations and benefits of the new bore rig that was delivered in May.
Two employees have been trained to work the machine. Vermeer has also been out to assist and train
in the field. Discussion followed regarding the benefits of having this machinery in place. No action
taken.
5.1 Joint Meetine with the Herita¢e Preservation Commission to Discuss the Jackson Street
Water Tower
Rebecca Haug, the Environmental Administrator for the City of Elk River, discussed the status
of putting the Jackson Street Water Tower on the National Register. Discussion followed regarding
the cost of maintaining the tower, the funds ERMU set aside for demolition, and the avenues available
for funding the towers expenses now and in the future. Troy Adams stated that the cost to repair and
paint the tower is approximately $400,000. Troy Adams also stated he does not think the ERMU
water customers should be solely burdened with additional fees to save the tower. Steve Rohlf asked
for approval to apply for grants and also stated be understands that if the cost is extreme and funds
cannot be raised, the tower would riot be saved. John Dietz said to go ahead and check on the grants
available. John Dietz then asked Peter Beck if the City could purchase the tower after it was on the
National Register. Given the mission of the City of Elk River is more in line with ownership of a
historical asset, versus the ufility mission of ownership of finrctionittg assets, Peter Beck said he didn't
think it would be an issue. Rebecca Haug asked for permission to post $yers to save the water tower.
Consensus of the Commission was it was a great idea
5.2 Review and Consider Proposed Utilities ur¢anvstional xestructarme
In April 2009, the Utilities underwent organizational restruchaing. At that time the supervisory
and advisory responsibilities for the Water Superintendent were assigned to the Public Works Director
for the City of Elk River. In early 2010, the Public Works Director resigned and the City of Elk River
decided not to fill the position at that time. Troy Adams discussed the benefits of bringing the Water
Department back in house. Troy Adams also requested a change in title due to the confusion of his
ctarent job title in the industry. Discussion followed.
Daryl Thompson moved to change Troy Adams job title to Utilities Director until April 2012,
and adopt the new staff organvationa- chart with the Water Department being under the
Ut~ities Director with a probationary period thru Apri12012. AI Nadeau seconded the motion.
Motion carried 3-0.