11-05-2007 HRA MINMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER 5, 2007
Members Present: Chair Wilson, Commissioners Kuester, Toth, Lieser, and Moon
Staff Present: City Administrator Lori Johnson, Community Development Director Scott
Clark, Director of Economic Development Catherine Mehelich, Public
Works Director Terry Maurer; Recording Secretary Debbie Huebner
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 5:00 p.m. by Chair Wilson.
Consider November 5, 2007 HRA Agenda
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
LIESER TO APPROVE THE NOVEMBER 5, 2007, HRA AGENDA AS
PRESENTED. MOTION CARRIED 5-0.
Consider Consent Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
1. SEPTEMBER 4, 2007 REGULAR MEETING MINUTES
2. SEPTEMBER 17, 2007 SPECIAL HRA MEETING MINUTES
3. CHECK REGISTERS
4. BALANCE SHEET -AUGUST 2007
5. REVENUE/EXPENDITURE REPORT -AUGUST 2007
6. BALANCE SHEETS -SEPTEMBER 2007
7. REVENUE/EXPENDITURE REPORT -SEPTEMBER 2007
MOTION CARRIED 5-0.
4. Open Mike
There was no one present for Open Mike.
5. Downtown Revitalization Project Update
Ms. Mehelich provided an update on the Bluffs of Elk River and Jackson Place projects and
the Downtown Parking Study.
Chair Wilson thanked the HRA members for their work on the Bluffs and Jackson projects.
He asked for clarification on their request for 32 parking permits. Ms. Mehelich stated that
Housing & Redevelopment Authority
November 5, 2007
Page 2
the original request was for 32 spaces north of Highway 10, but that the Council has since
authorized overnight parking in the King Avenue parking lot.
Commissioner Toth asked what the status is of the parking lot north of Highway 10. Mr.
Maurer stated that this item is on this evening's City Council agenda to consider the re-
paving of the lot. He noted that it was discovered that there is no formal agreement with
MnDOT for the City's use of the Highway 10 right of way for the parking area. He stated
that there currently are vehicles parking overnight in the lot. Commissioner Toth asked if
the parking was addressed in the developer agreement. Ms. Mehelich stated that the
developer agreement primarily dealt with the tax increment financing.
Commissioner Moon stated that the residential tenants in the Cinema building have
requested designating additional parking for them. Ms. Mehelich stated that the City Council
has given direction to accommodate them with some parking stalls in the King Avenue
parking lot.
Consider Arts Alliance Lease Request for 716 Main Street lHoulton Buildin~l
Mr. Clark updated the Commission on past discussions regarding use of the 716 Main Street
property by the Arts Alliance. He noted that three members of the Arts Alliance were
present to answer any questions the HRA may have. Mr. Clark stated that staff feels placing
the Arts Alliance in the downtown will provide exposure for them and bring energy to the
downtown. He explained that if the IIRA agrees to pursue this use, an informal
memorandum of understanding will be completed and a lease agreement could be presented
at the December HR A meeting. Mr. Clark stated that the group is looking for atwo-year
. commitment and described leasehold improvements they are proposing to make. He stated
that a lease would be beneficial to both parties.
Commissioner Toth asked if the prayer group was still meeting at the site. Ms. Mehelich
stated that they were advised they could meet there until the end of October and had the
option to request longer, but they have not responded.
Commissioner Motin stated he had concerns for providing free rent space. He wants to be
sure the Arts Alliance realizes the arrangement would be for two years only. Commissioner
Kuester stated that she is in agreement that the city needs to use caution in providing free
rent space, since there are other organizations the city has partnered with besides the Arts
Alliance, such as CAER and the Chamber of Commerce. Chair Wilson concurred this is an
issue to consider in the future. Ms. Mehelich noted that the City Council will be considering
a use policy for the library this evening, which could be a basis for use of other city facilities.
Commissioner Toth asked if the Arts Alliance has done any long range planning. A
representative from the Alliance stated that they hope to have a permanent home in the
future, but that they do not have a specific site in mind.
Commissioner Motin stated that it is not a city function to provide space for charitable
organizations, and there are a number of restrictions in the statutes regarding this issue. City
Administrator Lori Johnson concurred, stating that organizations the city is allowed to
contribute to include the food shelf, arts, recreation and senior citizen activities.
Commissioner Motin stated that he did not feel the city should provide a building for arts.
Commissioner Lieser asked if the Arts Alliance would like to continue downtown, if they do
well in this location. A representative from the Arts Alliance stated yes, they probably would
Housing & Redevelopment Authority Page 3
November 5, 2007
like to continue downtown, but if they need a larger space they would have to look
elsewhere.
Wendy Simonson, also representing the Arts Alliance, stated they had hoped to build with
the school bond issue, but that did not happen. She stated they are now in the position to
get as much exposure as possible. She noted that they are a volunteer organization and have
no funds at this point, but they would hope that they would be more affluent in the future so
that they could pay some rent.
Commissioner Toth asked if the HRA would review the final lease. Mr. Clark stated that if
the HRA is agreeable, staff will prepare a lease agreement with recommendations for the
HRA to review in December.
MOTION BY COMMISSIONER TOTH AND SECONDED BY
COMMISSIONER KUESTER TO AUTHORIZE PREPARATION OF A DRAFT
TWO-YEAR LEASE AGREEMENT WITH THE ARTS ALLIANCE FOR USE OF
THE 716 MAIN STREET SITE, TO BE PRESENTED AT THE DECEMBER 3,
2007 HRA MEETING. MOTION CARRIED 5-0.
7. 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.
• ~i,E ~!'
Debbie Huebner
Recording Secretary
•