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08-01-2011 HRA MIN• MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, AUGUST 1, 201 I Members Present: Chair Wilson, Commissioners Lieser, Motin and Toth Members Absent: Commissioner Koester Staff Present: Interim City Administrator Bob Thistle, Economic Development Director Annie Deckert, Finance Director Tim Simon, Recording Secretary Debbie Huebner Also Present: Robert McDonald, Pizza Ranch Restaurant 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 August 1, 2011 HRA Agenda MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER • LIESER TO APPROVE THE AUGUST 1, 2011 HRA AGENDA AS PRESENTED. MOTION CARRIED 4-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER MOTIN TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. JUNE 6, 2011 HRA MINUTES 3.2. CHECK REGISTER 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT MOTION CARRIED 4-0. 4. en Mike - No one appeared for Open Mike Consider Modifying Resolution 11-02 Adopting a Spending Plan for Tax Increment Financing District No. 16 Ms. Deckert reviewed background information regarding TIF District No. 16 financing assistance for the Elk River Pizza Ranch project. She explained that construction was to have commenced. before July 1, 2011, but that recent legislation has extended this date to July 1, 2012. Therefore, the spending plan needs to be amended to reflect these changes. Staff has been working with attorney • Jenny Boulton of Kennedy & Graven to make changes to the loan agreement as it pertains to the Housing & Redevelopment Authority August 1, 2011 Page 2 changes in legislation. Ms. Deckert noted that Mr. McDonald has indicated the project is anticipated to be complete in October 2011. • Commissioner Toth asked when the project is expected to start. Mr. McDonald stated that closing for the property is August 12th and construction is anticipated to start the next day. MOTION BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER MOTIN TO ADOPT RESOLUTION 11-02, A RESOLUTION ADOPTING AN AMENDED SPENDING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 16 AND MODIFYING INTERFUND LOAN RESOLUTION 02-02. MOTION CARRIED 4-0. Commissioner Motin asked if the public hearing bythe City Council is scheduled for this evening. Ms. Deckert stated yes; noting that it was originallyscheduledfnr August 15th. 6. Consider Year 2012 HRA Budget and Resolution Establishing HRA Levy 7. 716 & 720 Main Maintenance Update Ms. Deckert reviewed revenue and expenditures detail for the proposed 2012 HRA budget and explained the significant change in the 716 and 720 Main building maintenance line item was to cover anynecessaryrepairs for the buildings. Ms. Deckert noted a change in the insurance line item. Commissioner Motin stated that since it is not known at this time if the 716 and 720 Main Street buildings will be demolished, he suggested allocating a smaller amount, $5,000 - $10,000 in the Building Repair & Maintenance fund, and the remainder put into reserve in the HRA Redevelopment • Fund. Chair Wilson asked for clarification on the changes. Mr. Simon reviewed the changes and discussed the impact of the 6 percent decrease in market valuation on the budget, and re-allocation of funds to address the HRA's concerns regarding the 716 and 720 Main Street buildings. Commissioner Motin asked what maintenance costs are anticipated to be in 2012. Ms. Deckert stated that roof replacement alone is $45,000 - $50,000. Ms. Deckert reviewed the comments of Building Official Bob Ruprecht regarding his inspection of the two buildings on July 13, 2011. She explained that the most serious issue is the 720 Main roof condition, Mr. Ruprecht recommended consulting a structural engineer to design a repair. Staff will report back to the HRA at a future meeting on this issue. Mr. Raymond stated that he was also up on the roof with Mr. Ruprecht. He explained that the snow load issues on 720 building relate to the hand made rafters, but the leaks do not. He stated that the 720 roof is more likelyto fail than the 716 roof. Chair Wilson asked if there were anyleaks today (August 1) at the 716 building. Mr. Raymond stated yes, there is water on the floor. Mr. Thistle stated that the membrane issue is secondaryto the structural issues, and that is the reason Mr. Ruprecht is recommending that a structural engineer look at the building. Commissioner Toth stated that either tearing down or repairing the buildings must be reflected in the budget. Mr. Thistle stated that in addition to the membrane issue, there is the structwal issue, and how the 720 building ties into the adjacent structure (Elk River Meats). Ms. Deckert noted that • Housing & Redevelopment Authority August 1, 2011 Page 3 when the building was looked at previously, theywere not able to determine if there was a shared • wall Discussion followed regarding the best wayto address repairs or possible demolition of the two buildings in the 2012 HRA budget. Finance Director Tim Simon made suggestions for revising the budget to reflect the HRA's allocation of funds for the properties. MOTION BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER LIESER TO APPROVE THE 2012 HRA BUDGET WITH THE FOLLOWING CHANGES RELATED TO THE 716 AND 720 MAIN STREET PROPERTIES: 4362 -INSURANCE; CHANGE AMOUNT TO $1,500 4401 -BUILDING MAINTENANCE AND REPAIR; CHANGE TO $5,000 4319 -OTHER PROFESSIONAL SERVICES; ADD $20,000 ($95,000 TOTAL) AND, TO APROVE RESOLUTION NO. 11-03, A RESOLUTION ESTABLISHING THE TAX LEVY FOR THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY FOR COLLECTION IN YEAR 2012; REQUESTING THAT THE CITY COUNCIL LEVY A SPECIAL TAX OF .01440 PERCENT OF TAXABLE MARKET VALUE OF THE CITY FOR THE BENEFIT OF THE AUTHORITY TO BE USED FOR PURPOSES AS PROVIDED IN MINNESOTA STATUES. MOTION CARRIED 4-0. 8. Branding and Marketing Update • Ms. Deckert provided an update on the branding and marketing strategyprocess. She noted that the final presentation of the strategywill be given to the EDA and City Council on September 12~, immediately following the Council work session. She also discussed the citizen satisfaction survey, Energy City educational event series, and restaurant attraction and recruitment efforts. 9.1. Other Business Ms. Deckert reviewed informational items regarding the Downtown River's Edge group and the Emergency Homeowners Loan Program. ---------------- CommissionerToth asked if the City Council is still planning to start the downtown study in the fall Ms. Deckert stated that this item is one of the Council's goals, and that she will be working with Planning Manager JeremyBarnhart on this process. She noted that theywill be contacting previous downtown task force members regarding their interest. ----------------- Ms. Deckers stated that interviews have been completed for the Economic Development Assistant position and the personnel committee hopes to have a recommendation next week for the EDA and City Council. 10. Adjournment There being no other business, Chair Wilson adjourned the meeting. The meeting of the Elk River Housing and Redevelopment Authority adjourned ax 6:05 p.m. • Housing & Redevelopment Authority August 1, 2011 Minutes prepared by bbie Huebner. Tina Allard City Cler - ~; ~' ~, iJ Stewart Wilson Chair, Housing and Redevelopment Authority Page 4 • •