Loading...
10-03-2011 HRA MINMEETING OF THE ELK RIVER • HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, OCTOBER 3, 201 I Members Present: Vice Chair Toth, Commissioners Lieser and Motin Members Absent: Chair Wilson and Commissioner Kuester Staff Present: Director of Economic Development Annie Deckert, Assistant Director of Economic Development Clay Wifahrt, Interim City Administrator Bob Thistle, Building Official Bob Ruprecht, Planning Manager Jeremy Barnhart and Recording Secretary Debbie Huebner. Also Present: David Raymond, Arts Alliance Chairman; Dennis Chuba, Arts Alliance Board Member; Ed Nelson, Minnesota Home Ownership Center 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 Vice Chair Toth. 2. Consider October 3, 2011 HRA Agenda • MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER LIESER TO APPROVE THE OCTOBER 3, 2011 HRA AGENDA AS PRESENTED. MOTION CARRIED 3-0. 3. Consider Consent Agenda. MOVED BY COMMISSIONER LIESER AND SECONDED BY COMMISSIONER MOTIN TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. HRA MINUTES 3.2. CHECK REGISTER 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT MOTION CARRIED 3-0. 4. Oven Mike - No one appeared for Open Mike. 5. 716 and 720 Main Street Discussion Ms. Deckert stated that the HRA purchased the two buildings in 2006, with the primary purpose of expanding parking options for the downtown businesses. Maintenance costs have increased the past two years, due to repairs of the roof and HVAC system. In April 2011, the HRA directed staff to • research the cost to remove the buildings-and potential impact on the Elk River Meats building. On July 11, 2011, significant leaks were experienced at the 716 building.. Building Official Bob Ruprecht Housing & Redevelopment Authority Minutes October 3, 2011 Page 2 and building maintenance staff inspected the building and recommended an inspection by a structural engineer. Loukes Associates inspected both buildings, as well as the meat market, on • August 19 at no cost to the HRA. Their inspection determined that the 720 building has failed roof trusses. Loukes recommended no one enter this building until further detailed investigation is complete or either the building is demolished or repaired. Details of their recommendations are attached to the staff report to the HRA dated October 3 regarding building repair or demolition. Ms. Deckert reviewed three options for the HRA to consider: repair the building; demolish 720 Main Street; or demolish both 716 and 720 Main Street. She noted that it is imperative to move forward before there is a heavy snowfall to avoid the riskof roof collapse of the 720 building which poses a risk to public health safety. Commissioner Lieser asked if the 720 building was being used for storage. Ms. Deckert stated that other than a couple of items from the Parks and Recreation department, but that the building was vacant. Commissioner Motin stated that he could see no reason not to demolish the buildings. He stated there is no way the HRA should spend $100, 000 for repairs, when the 716 building could also be demolished for $2,000 - $5,000 more. He felt it was their best option to tear down both buildings as quickly as possible, and he has received messages from other councilmembers who also feel the buildings should be demolished. He stated that it does not make any sense to keep throwing money at the buildings for repairs. David Raymond, Arts Alliance Chair, stated he questioned why there is so little difference in the cost to demolish only the 720 building and the cost to demolish both buildings. He stated that he felt the costs should be reevaluated, since the 716 building has a full basement. Mr. Raymond stated that the Arts Alliance would like to stay in the 716 building as long as possible. He explained that they are • still interested in the former First National Bank building and are not interested in any of the other sites they have explored so far. He stated that the Arts Alliance understands the HRA's position and he thanked them for allowing them to utilize the 716 building. Vice-Chair Toth stated that he appreciated the Arts Alliance's presence in the downtown and felt they brought people to the downtown that might not have otherwise have come. Dennis Chuba, Arts Alliance boardmember, stated he inspected the buildings a year ago and found that the 720 was falling apart, but that the 716 building was a more modern construction. He concurred that the 720 building is dangerous and should be taken down, but felt that the 716 building should be saved: He noted that if both buildings are demolished, the city should make an offer to the Robecks (Elk River Meats). for their building and take down all three. He stated that he hoped the city would assist the Arts Alliance in finding another location. Vice-Chair Toth asked if the 716 building had steel supports. Mr. Ruprecht stated yes, that was, correct. Vice-Chair Toth asked if the re-roofing costs seemed accurate. Mr. Ruprecht stated yes, since the cost included taking the roof off down to the decking. Toth asked if he felt the HRA buildings could be taken down separately. Mr. Ruprecht stated yes, it was possible, but it certainly would be easier to take them both down. He explained that the roofs of the two buildings are covered with a membrane that blends together and there would be additional cost to re-do the 716 roof if only 720 was taken down. Toth stated he questioned the demolirion costs, since there would concrete removal for both buildings. Mr. Ruprecht stated that cost estimates were done by the structural engineer. Housing & Redevelopment Authority Minutes October 3, 2011 Page 3 Commissioner Moon that he did not feel it would make sense to remove the 720 building at a cost of • $95,000 - 120,000; repair the 716 building roof for $45,000; and then eventually remove the 716 building when parking is needed for an additional $75,000 - $120,000. Commissioner Lieser asked if the concrete could be buried. Mr. Ruprecht stated no, it must be removed. Vice-Chair Toth asked how much has been spent on this project so far. Ms. Deckert stated that the only cost has been staff time. Toth asked if any of the work could be done in-house. Mr. Ruprecht stated that some of the civil engineering could be done in-house, but the trusses for the 720 building are embedded into the meat market and a structural engineer would be necessary to design plans for separating the buildings. Toth stated that he believed the meat market had a separate wall. Mr. Ruprecht stated that he has not taken the wall apart enough to know exactly how it is put together. Toth stated that he felt the HRA should utilize staff to do whatever can be whatever can be done in- house. Commissioner Lieser concurred that both buildings should be demolished. Ms. Deckert stated that she would need authorization from the HRA to solicit quotes for the cost of demolition. MOTION BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER LIESER TO PROCEED WITH OBTAINING PROPOSALS FOR COSTS TO DEMOLISH THE 716 AND 720 MAIN STREET BUILDINGS. Commissioner Motin asked that staff continue to work with the Arts Alliance on relocation. He suggested that they check with the owner of the Bluff Block for temporary location in the empty • office space. Mr. Raymond stated that there are two possible spaces in this building but he did not know what the cost of the lease would be. MOTION CARRIED 3-0. Presentation - Ed Nelson, MN Homeownership Center Vice-Chair introduced Clay Wilfahrt, Assistant Director of Economic Development. Mr. Wilfahrt introduced Ed Nelson of the Minnesota Homeownership Center (MNHOC). Mr. Nelson reviewed the programs offered by MNHOC including the Emergency Homeowners' Loan Program, homebuyer education, foreclosure prevention, and home repair and rehab. He also discussed their public awareness campaign regarding foreclosure scams, and tools such as downpayment and entry cost assistance for first time homebuyers. Mr. Nelson stated that Minnesota experienced a downward trend in foreclosures in the first quarter of 2011, down from 2010 (250 in the first quarter of 2010, 142 in the first quarter of 2011). But, he noted that the numbers are creeping back up in the second quarter of 2011 (200). He stated that Elk River's numbers are coming down a little more, in comparison to the overall state numbers. He noted that 62 Elk River homeowners have come in for counseling and 16 have participated in pre- purchase education. Mr. Nelson noted there are some new innovations in foreclosure prevention counseling: (1) homeowners now have a single point of contact, to make sure that things are running smoothly, rather than having the homeowner work with multiple individuals; (2) MNHOC has a brand new • partnership with Fannie Mae; (3) counseling partnerships with other banks such as Wells Fargo and Chase; (4) Dodd- Frank Making Home Affordable program (300-400 households in Minnesota Housing & Redevelopment Authority Minutes October 3, 201 ] Page 4 participating); and (5) online education to be available in 2012 so that participants don't have to drive • long distances to complete the required education. Mr. Nelson stated that their website offers all kinds of resources for homeowners at w~w.hocmn.org and their phone number is 862/462-6466. Commissioner Lieser asked how many of the 18 households were able to participate in the mortgage assistance "lottery" program offered this summer. Mr. Nelson stated drat unfortunately only about ten percent actually qualified because of the strict criteria. Downtown Plan Discussion Planning Manager Jeremy Barnhart stated that staff is ready to reopen the downtown plan. He explained that the plan was put on hold until the Highway 10 was complete. He stated that the City Council will determine if the task force will reconvene. Mr. Barnhart noted that it is not the intent to start the process over and instead, pick up where it left off. He stated he anticipates it will take 4 - 5 months to complete the plan. Commissioner Toth asked for clarification on the status of the task force. Mr. Barnhart explained that the City Council will decide if a task force is necessary, and that decision has not yet been made. Mr. Barnhart stated that the HRA will receive updates on the process. 8. Branding Update Clay Wilfahrt stated that the final brand plan was presented to the EDA on September 12 and the • EDA authorized staff to move forward with implementing the brand. He stated that there were no surprises in what the consultant, Chandlerthinks, uncovered; that Elk River is a small, friendly, outdoorsy community. He stated that a steering committee has been assembled and has meet several times to determine standards for the brand as well as strategies for implementation in materials such as email signatures, letterhead, business cards, and other marketing materials. The group is also exploring trademarking the logo. Mr. Wilfahrt noted that staff is working to promote the brand in the community and has given presentations to the Two Rivers Referrals Group, River's Edge Business Group, and has met with local manufactures, businesses. and the Chamber of Commerce regarding brand implementation. Additional presentations are scheduled with non-profits such as the Rotary, Library Board and YMCA. 9.1. Other Business Mr. Wilfahrt noted that the 2nd annual River's Edge Art Craw is scheduled for October 20 from 5 - 9 pm. Vice Chair Toth asked about the status of the NAPA building. Ms. Deckert stated that the demolition permit was released today and the building may akeady have been taken down. Ms. Deckert stated that staff will continue to provide foreclosure prevention updates and initiatives to community groups for distribution. 10. Adjournment • Housing & Redevelopment Authority Minutes October 3, 2011 There being no other business, Vice-Chair Toth adjourned the meeting. • The meetin of the Elk River Housin and Redevelo ment Authori adjourned at 6:32 .m. g g p tY J P Minutes prepared by e, bie Huebner. Tina Allard City Clerk .. ~... 9.: ..... ......^~~.. P ~ ~, ~~ '.Larry Toth Vice-Chair, Housing and Redevelopment Authority • Page 5