08-06-2007 HRA MIN• MEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 6, 2007
Members Present: Chair Wilson, Commissioners Lieser, Moon and Toth
Members Absent: Commissioner Kuester
Staff Present: Community Development Director Scott Clark, Director of Economic
Development Catherine Mehelich and Finance Director Tim Simon
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 August 6L2007 LIRA Agenda
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
LIESER TO APPROVE THE AUGUST 6, 2007, HRA AGENDA AS PRESENTED.
MOTION CARRIED 4-0.
• 3. Consider Consent Agenda
MOVED BY COMMISSIONER LIESER AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. CONSIDER MAY 7, 2007 REGULAR MEETING MINUTES -
APPROVED WITH CORRECTIONS MADE BY COMMISSIONER
LIESER
3.2. CHECK REGISTERS
3.3. BALANCE SHEET -FEBRUARY 2007
3.4 BALANCE SHEET -MARCH 2007
3.5 BALANCE SHEET -APRIL 2007
3.6. REVENUE/EXPENDITURE REPORT -APRIL 2007
MOTION CARRIED 4-0.
4. Oven Mike
-~-
There was no one present for Open Mike.
5. Downtown Revitalization Project Update
Ms. Mehelich provided updates on the following projects:
Jackson Place
The project is expected to be complete in late September/early October, the construction
fence will be removed and traffic restored on Jackson Avenue.
Downtown Parking Study
Carl Walker, Inc. has completed the initial phase of the Downtown Parking Study and is
moving into the second phase which includes analyzing existing and future needs. They will
be making a recommendation regarding parking management which may include a concept
design for a future parking ramp. Staff proposed a joint meeting of the I-IRA and City
Council, and also will be inviting the Downtown Parking Focus Group. No date has been
set yet, but may possibly be the work session on the second Monday in September.
River's Ed e Downtown Business Association Street Dance
This event is moving forward. The River's Edge group will meet next Wednesday for an
update. Ms. Mehelich noted that staff regularly attends these meetings. Commissioner Toth
asked if anyone had gotten back to Marcy VanValkenberg regarding her question in the
Rivers Edge meeting minutes as to whether the King Avenue parking lot deeds included any
use restrictions. Mr. Clark stated yes, that Lori Johnson, City Administrator, has responded
and there were no deed obligations.
The Bluffs of Elk River project
Mr. Clark provided an update regarding the status of the construction and issuance of the
Certificate of Occupanry for the residential and commercial units. Commissioner Motin
asked if the bank has authorized the final draws. Mr. Clark stated that it is his understanding
that yes, the draws have been authorized.
• 6. Project Update -Redevelopment Framework Plan
Ms. Mehelich noted that information regarding the project is available on the city's website.
She provided background information regarding appointment of the Task Force,
establishment of the study area boundary, and visioning discussions which led to the
acceptance of the draft plan by the Task Force. She explained that two "stakeholders"
meeting were held on July 24th, with approximately 135 people in attendance at each
meeting. Staff is currently tallying the comments received from the "stakeholders" and
summary of the comments will be presented to the Task Force at their August 13th meeting.
They will also be re-examining the Highway 10 issue. The draft plan fox dealing with
Highway 10 will be presented to the City Council at their August 20~ meeting, and if the are
in agreement, the Task Force will continue with the open houses and city boards and
commissions review. The Task Force will then review all of the comments received and
revise the plan, making a final recommendation to the HRA and City Council for adoption
in December or January.
Commissioner Lieser asked how many citizens have requested follow-up information. Ms.
Mehelich stated that approximately two dozen people have requested more information.
Commissioner Toth asked how long the trail concept along the Mississippi has been in the
city's plans. Mr. Clark stated that Parks and Recreation Director Bill Maertz has dated the
concept back to 1988.
Commissioner Motin stated that he felt the City Council had been blind-sighted, regarding
presentation of the plan to the stakeholders prior to City Council review. He stated that he
felt the Council gave clear direction that they wanted the plan to show Highway 10 either
above or below grade, not at grade. He stated that a revised plan should have come back to
the Council prior to holding the public meetings. Commissioner Motin stated that he felt
the river trail should be considered, even though it could be 20 - 40 years before an
opportunity opened up to acquire the property. He stated that if and when the properties do
develop, the city would then have the option to acquire the trail, but if it is not on the map,
they cannot ask for it in the future. He stated that some items in the plan could be
accomplished in 20 years, and some may need to be perpetual until they are accomplished.
Commissioner Toth stated that all plans are subject to change, and he does not expect that
in 20 years, the full plan will have been accomplished. He noted that Task Force was guided
by the consultant regarding public involvement early on in the process. Commissioner
Moon stated that someone made a decision to send out the July 3rd mailing. Commissioner
Toth stated that the suggestion was made to hold the property owner meetings for the
purpose of informing them and the Task Force was in agreement. Commissioner Toth
stated that the Task Force felt it was difficult to develop a plan including possible changes to
Highway 10 without knowing what MnDOT is going to do.
Chair Wilson stated that he could understand Commissioner Motin's concern that the City
Council was not aware of what was going on. He stated that the Task Force would be
dealing with the Highway 10 issue at their August 13~ meeting. Commissioner Motin stated
that the Council's position was that they would reject an "at grade" alignment if it involved
the closure of either the Main Street or Jackson Avenue access to the downtown.
Commissioner Morin stated that the City Council should have done a geometric study
• before the Task Force began their work. He stated that it may be possible to do a portion of
the geometric study.
Commissioner Lieser stated that she felt the Task Force put the design out to the public to
get feedback, and that they appreciated the feedback they did receive and that it will be used
to move forward.
7. Consider Year 2008 HRA Budget and Resolution Regarding HRA Lew
Ms. Mehelich stated that the 2008 HRA budget is similar to past years' budgets. She
provided a summary of the budget and reviewed highlights in revenues and expenditures as
listed in the staff report to the I IRA dated August 6, 2007. Commissioner Toth asked for
clarification on the $86,600 transfer out to HRA Redevelopment Fund. Ms. Mehelich
explained that this is the I-IRA cash balance after expenditures. Commissioner Toth asked
what the balance is currently. Chair Wilson stated it is approximately $155,000 as noted on
the June balance sheet. Ms. Mehelich stated that the balance is currently high because they
had just received the first half year taxes and that the HRA has since used part of their cash
balance for the down payment to purchase the Houlton buildings.
Commissioner Motin questioned the shift in the EDA/HRA split from 70-30 to 60-40 that
was made back in 2004. Ms. Mehelich stated that the change is accurate due to the
anticipated implementation of the Downtown Redevelopment Plan. Activities include
identifying housing grants, negotiations with property owners, etc. She stated that this years'
activities have been more of a 50-50 split, or even a 60-40 split with HRA activities
consuming more than half of staff time.
• Commissioner Toth asked if staff will pursue rental property grants. Ms. Mehelich stated
• that staff will be investigating financial resource opportunities for housing rehabilitation to
find out what is currently available and what the city could do. She stated that the housing
market study research will be based on supply and demand, rather than on housing
conditions.
Commissioner Motin questioned why there is such an increase in cash received. Mr. Simon
explained that the increase is due to the increase in the net tax capacity from $1.7 billion to
$2 billion. Commissioner Motin asked why $25,000 was being budgeted for the housing
study. He stated it was his recollection that the previous study was around $1,000. Ms.
Mehelich stated that staff has not yet explored all of the options for who can complete the
study and that the Central MN Housing Partnership could be a cheaper option. Chair
Wilson noted that the item will require a separate action by the HRA when options for the
study are presented.
Mr. Simon noted that the basis for the transfer out to the HRA is to create capital project
funding.
Chair Wilson asked where the existing HRA cash balance would be placed. Mr. Simon
stated that the I-IRA can decide where to designate the funds.
MOTION BY COMMISSIONER MOTIN TO APPROVE THE 2008 HRA
BUDGET. MOTION CARRIED 4-0.
MOTION BY COMMISSIONER TOTH AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE RESOLUTION
. AUTHORIZING THE 2008 HOUSING AND REDEVELOPMENT AUTHORITY
LEVY.
8. Other Business
Mr. Clark stated the Arts Alliance has been notified that City Council will be reviewing the
parking study in September. If it appears the Houlton buildings will remain for some time,
staff will meet with the Arts Alliance to discuss a possible lease. If the Arts Alliance is still
interested, an agreement will be presented to the IIRA in October for approval. Mr. Clark
noted that they are interested in a minimum of two-year agreement.
Ms. Mehelich noted that the regular meeting date for the September HRA meeting falls on
Labor Day. It was the consensus of the HRA to call a special meeting for Tuesday, August
4~ to conduct regular HRA business.
9. Adjournment
There being no other business, Chair Wilson adjourned the meeting. The meeting of the Elk
River Housing and Redevelopment Authority adjourned at 6:27 p.m.
Debbie Huebner
Recording Secretary
•