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5. HRSR 08-13-2012 City of Elk REQUEST FOR ACTION River To Item Number Housing&Redevelopment Authority 5. Agenda Section Meeting Date Prepared by August 13,2012 Annie Deckert,Director of Economic Development Item Description Reviewed by Consider Year 2013 HRA Budget and Resolution Regarding Tim Simon, Finance Director HRA Levy Reviewed by Cal Portner, City Administrator Action Requested Staff recommends the HRA review and approves the Year 2013 HRA Budget as presented and approve the attached Resolution Establishing the HRA Tax Levy for Collection in Year 2013. Following the HRA's action, the City Council must approve and certify the HRA levy to Sherburne County in September. Background/Discussion The Economic Development Division consists of two separate budgets including: • Economic Development Authority • Housing&Redevelopment Authority Revenues Since 2003, HRA levy has been sufficient to HRA without using City General Fund revenues. In 2008, the HRA acted to maintain the general operating levy at 0.0144% of taxable market value, despite a statutory increase allowing HRA's to levy a maximum of 0.0185%. The attached Budget Worksheet has been prepared using the 0.0144%levy as in previous years. Revenues generated from the HRA tax levy for 2013 budget purposes are estimated based on a 10% decrease in taxable market value. Updated information will be available from the County Assessor in September. Expenditures The proposed 2013 budget was developed with the goals and action steps outlined in the 2009-2012 Strategic Plan, City Vision& Goals, and the branding implementation plan.The EDA and HRA will work to devise the 2013-2016 Strategic Plan at a meeting later this year. Any major budget changes deviating from the proposed 2013 budget will be brought forth in front of the HRA for consideration. Personnel Services In the 2009-2012 Strategic Plan, the EDA, HRA and Council identified rehab and redevelopment as a priority which included the following strategies: monitor inventory of housing stock to identify gaps, identify potential areas for revitalization and examine available tools, and determine roles to initiate necessary changes. The completion of the housing study will help to do these things, however staff s current workload poses a challenge to move forward with these strategies. With the addition of the brand 2013 HRA Budget Action Requested implementation (identified as a goal and priority of the 2009-2012 Economic Development Strategic Plan and 2011 Vision and Goals) approved in September 2011 by the EDA and City Council, staff has not had adequate time to dedicate towards housing activities. In addition, staff continues to receive inquires for Neighborhood Stabilization Program (NSP) funds to assist with down payment assistance and rehabilitation and has identified a potential need for additional housing programs. Staff would like to explore the opportunity to create internal housing programs which could be funded through the HRA Development Fund. Finally, there is an opportunity to explore and potentially take advantage of various local, state and federal programs as well as research potential grant opportunities. Staff proposes to hire a college intern to assist with these tasks. The amount for the intern is included in the Personnel Services line item which reflects a 32 hour work week at$12 an hour (no benefits). Many colleges and universities require an internship to graduate,which would coincide with school semesters/terms. In 2004, the Personal Services costs were adjusted from 70/30 percent EDA and HRA respectively to 60/40 percent due to staff time allotted to the downtown construction project and redevelopment planning. It is proposed that this continue in 2013 due to staff time spent on foreclosure prevention, housing activities,intern supervision and the anticipated Downtown Redevelopment Plan. Other Professional Services The Planning Manager Jeremy expects the Downtown Plan will be approved and implementation beginning by January 1, 2013. The plan does include implementation priorities. While many of these priorities are tasks,not budget intensive,it is expected that implementation of the physical attributes of the plan will generate momentum and support for the plan. The priorities are anticipated to include signage (way finding,regulatory, street), embellishments (benches, flags,lighting,landscaping), or financial assistance. Staff suggests $30,000 of the HRA budget to be used for these purposes which may be amended up or down depending on the recommendations of the Downtown Task Force. The HRA budget does not include funding for outside of the study area. Postage,Advertising/Marketing,Publishing The increase in these line items is attributed to an increase in direct mailings,advertising, and marketing in the anticipation of new housing programs. We use direct mailing to promote foreclosure prevention initiatives and housing financial programs available from local non-profits. Staff would like to explore the potential of new housing programs to promote,which would require additional funding. Contractual Services In April of 2012, the HRA approved a master plan for the Main Street Parking Plaza which included a downtown business kiosk and a parking plaza monument sign. The budget includes $15,000 in Contractual Services and$1,500 in Other Professional Services for the design and construction of the business kiosk. In April, the HRA expressed interest and support for a business kiosk however felt the $30,000 estimate was high. The River's Edge Business Association expressed interest in the kiosk, and was open to paying for advertising on the kiosk. The designer of existing kiosk in River's Edge Commons Park,indicated a suitable kiosk to complement the existing kiosk could be designed and constructed at approximately half the cost. The proposed 2013 budget includes kiosk funding but none for the monument sign. It is believed the parking plaza name on the business kiosk sign is adequate,in addition to the comprehensive parking signage which will likely be a recommendation in the downtown 2013 HRA Budget Action Requested plan. Should the HRA approve the business kiosk in the proposed budget,we will bring the item back for further discussion at a later date. Transfers Out There are no longer expenditures in the Utilities and Building Repair and Maintenance line items since the HRA buildings were demolished. However,the HRA and Council approved a Memorandum of Understanding turning over management and maintenance of Main Street Parking Plaza to the city. The proposed budget outlines an annual transfer out in the amount of$3,175,rounded to $3,200 to cover these costs. The transfers to the General Fund will increase from$15,000 to $18,200. Common administrative expenses are proposed to be shared by the EDA and HRA as in previous years. An HRA transfer of$3,500 to the EDA covers approximately 40%of the shared expenses,which include office supplies, fuels, telephone and travel/training. HRA Development Fund In 2008, the HRA adopted a Fund Balance Policy to designate a percentage of its year-end fund balance to HRA Redevelopment Projects. This amount may be used for future redevelopment activities such as property acquisition, demolition/remediation, and housing programs. The acquisition of 716 and 720 Main Street and construction of the Main Street Parking Plaza was paid for by this fund. This fund gives the HRA opportunity to reinvest in the community through various redevelopment projects: property acquisition,rehabilitation,beautification, etc. Additionally,looking forward this fund can be utilized for potential housing grants/loans and Downtown Revitalization Plan recommendations. The current balance as of December 31, 2011,is $678,293. Attachments • Proposed 2013 Budget Worksheet • Proposed 2013 HRA Revenue&Expenditures • Resolution Establishing the HRA Levy for Collection in Year 2013 • 2013 EDA&HRA Goals and Performance Measures (internal document used during the budgeting process) • 2013 HRA Marketing Budget memo Action Motion by Second by Vote Follow Up 2013 HRA Budget Action Requested 2013 BUDGET DETAIL SHEET Dept: Housing & Redevelopment Authority Acct. 2012 BUDGET 2013 BUDGET Explanation/Detail of Supplies or Services No, Detail f., Total Detail 1,;, Total PERSONAL SERVICES 4101 Regular Pay 51,050 54,350 4103 Part Time Pay 20,000 4104 PERA 3,700 3,950 4105 FICA 3,150 4,600 4107 Medicare 750 1,100 4108 Insurance 7,200 7,450 4109 Workers Comp 350 350 TOTAL PERSONAL SERVICES 66 200 9'1,800 SUPPLIES 4201 Office Supplies Y ," (shared with EDA) TOTAL SUPPLIES OTHER SERVICES & CHARGES 4304 Legal Fees 10,000 , : Misc. 10,000 10,000 4319 Other Professional Services 90,000 Downtown Plan 60,000 Housing Study 15,000 Downtown Building -engineering study 15,000 Downtown Plan implementation 30,000 Main Street Parking Plaza Kiosk design 1,500 4322 Postage 500 500 7,000. 4331 Travel, Conferences&Schools (shared with EDA) 4349 Advertising/Marketing 2,500 Housing programs _ 2,500 10,000 Downtown Marketing- brand plan 5,000 4359 Publishing 16,000 Downtown Project Communications (4 times per year) 14,000 Redevelopment Plan Printing 2,000 Housing Program(s) PrintiJ _ 5,000 4361 Insurance 1,500 , Insurance(open meeting law/Property in the open) 1,500 1,500 Dept: Housing & Redevelopment Authority Acct. ° 2012 BUDGET 2013 BUDGET y Explanation/Detail of Supplies.or Services Detail ` Total Detail No l Total 4389 Utilities Water/electric- ERMU 4401 Building Repair& Maint 5,000 716&720 Main 5,000 4409 Contractual Services u: Main Street Parking Plaza Kiosk 15,000 TOTAL OTHER SERVICES&CHARGES 125,500 85,000 CAPITAL OUTLAY TRANSFERS OUT 18,500 4720 Transfers 4721 General Fund 15,000 18,200' 4735 Economic Development Authority(shared expenses) 3,500 3,500 TOTAL HOUSING&REDEVELOPMENT AUTHORITY 210,200 198,500 CITY OF ELK RIVER 2013 Requested Housing Redevelopment Authority Budget 'REVENUES I Actual 2009 Actual 2010 Actual 2011 Adopted 2012 Revised 2012 Requested 2013 Taxes 300,315 311,021 298,895 277,950 277,950 232,200 INTERGOVERNMENTAL REVENUES 10,996 11,702 11,500 - - - INVESTMENT EARNINGS 8,072 6,910 5,312 6,900 6,900 6,900 MISCELLANEOUS 3,396 (146) - - - - TRANSFER IN* - - - 39,650 39,650 - 'TOTAL REVENUES 322,779 329,487 315,707 324,500 324,500 239,100 *=TIF 16 will be complete in December 2012. EXPENDITURES Actual 2009 Actual 2010 Actual 2011 Adopted 2012 Revised 2012 Requested 2013 PERSONAL SERVICES 55,656 62,944 59,209 66,200 66,200 91,800 SUPPLIES 16 - - - - - OTHER SERVICES&CHARGES 12,406 7,392 87,500 125,500 125,500 85,000 DEBT SERVICE 118,168 287,971 - CAPITAL OUTLAY** - .. - - 163,250 TRANSFERS OUT 13,000 13,000 20,115 18,500 18,500 21,700 I TOTAL EXPENDITURES 199,246 371,307 166,824 210,200 373,450 198,500 **=Capital Outlay includes contruction contract for parking plaza. 1 3 HRA Revenues and Expenditures $400,000 .,...._....................................................__..........._ @$33�50,000 411111 41111 $300000 ... __ $250,000 , . $200,000 -TOTAL REVENUES $150 000 ; -TOTAL EXPENDITURES $100,000 $50,000 -` $0 ____.,_ .... _ . Actual 2009 Actual 2010 Actual 2011 Adopted 2012 Revised 2012 Requested 2013 L RESOLUTION 12 - 01 A RESOLUTION OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY A RESOLUTION ESTABLISHING THE TAX LEVY FOR THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY FOR COLLECTION IN YEAR 2013 WHEREAS, Minnesota Statute Section 469.033, Subdivision 6, authorizes a Housing and Redevelopment Authority to levy an amount not to exceed .01440 percent of the taxable market value of property within the city to be used for housing and redevelopment purposes;and, WHEREAS, the Elk River Housing and Redevelopment Authority anticipates expenditures in 2013 for various housing and redevelopment activities;and, WHEREAS, the Housing and Redevelopment Authority will adopt and approve its budget before a special tax can be levied. NOW, THEREFORE, BE IT RESOLVED that the Housing and Redevelopment Authority requests that the City Council of the City of Elk River, Minnesota, 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 Statutes. Passed and adopted by the Elk River Housing and Redevelopment Authority this 6th day of August, 2012. Stewart Wilson, Chair ATTEST: Annie Deckert, Executive Director Department Performance Measures&Goals for 2013 Department: Economic Development Completed by: Annie Deckert Date: July 2,2012 Performance Measure 2011 Actual 2012 Estimated 2013 Projected open up three lots for development, Expand city's inventory of beginning first phase of identify new areas for acquisition and available C/I land for future infrastructure development for development and research potential grant development Nature's Edge Business Center opportunities for land acquisition generate at least six news releases per year seven six six three-EDAM,MN Business Journal, obtain positive publicity via at four-EDAM,MREJ,MN Business Journal, Finance and Commerce,there were lease three significant newsletters Finance and Commerce,there were also also numerous articles in the Star each year numerous articles in the Star News News six we discontinued direct newsletter mails because of cost and relevancy,completed we have increased our social media publish at least four two direct mail pieces(restaurant presence and plan on beginning a newsletter/direct mail pieces per programs and promotion of Elk River for constant contact newsletter late four constant contact blasts a year,two year development) summer direct mail pieces conduct at least 12 BRE visits per year 11 completed(65 contacts made) four completed 12 increase private C/I investment by $3,000,000 $5,458,923 $8,883,587 create/retain at least 30 jobs with staff continues to complete mandated wages at$15+/hr state reporting re:job creation goals Related Vision Statement Goal Goal Objective(s) Resources Required Other Comments Develop new programs and Innovation-develop new programs and housing intern,marketing dollars I've identified a need for both down services to meet the needs of the services to meet the needs of the payment assistance programs and community:create internal community housing rehab programs to offer our housing programs to offer current Undertake strategies that facilitate rehab residents. The intern would work on and future residents and redevelopment of deteriorating researching and drafting program, commercial and residential areas to ensure guidelines,etc.under my direction. Our private reinvestment and sustainability department would promote the program(s) through various marketing initiatives (print,email,educational sessions,etc.) Monitor inventory of housing Redevelopment and Rehabilitation- housing intern,staff we will utilize findings of comprehensive stock to identify gaps undertake strategies that facilitate rehab housing study to achieve this goal and and redevelopment of deteriorating use when working with developers to commercial and residential areas promote development in Elk River Develop new programs and Innovation-develop new programs and Staff time I'll be reviewing our Micro Loan application services to meet the needs of the services to meet the needs of the to make changes I feel necessary to community:evaluate existing community increase the attractiveness and relevancy programs and services Undertake strategies that facilitate rehab of the program and redevelopment of deteriorating Execute brand implementation Community Development-enhance and staff time,marketing dollars continue to execute brand plan plan expand community involvement and public participation through a variety of innovative outlets Community Image and Marketing-identify desired image and strategies to effect necessary changes to achieve that vision Expand city's inventory of Industrial Development-attract new staff time,development dollars Staff has identified an area for future available C/I land for future businesses and support existing industrial development(data centers)and development businesses to increase the city's industrial is currently beginning discussions re: tax base and employment base wetland banking. Once this is complete, Opportunities-foster a pro-business staff will begin acquisition discussions with atmosphere that provides incentives and property owners other opportunities for new and existing business growth Implement downtown plan Opportunities-foster a pro-business staff time,implementation dollars staff hopes to implement downtown atmosphere that provides incentives and revitalization plan which includes other opportunities for new and existing comprehensive signage downtown and business growth throughout entire city Examine available tools and Innovation-develop new programs and staff time determine roles to initiate services to meet the needs of the necessary changes community created SAC/WAC payment program to Opportunities-foster a pro-business help attract full service restaurants, atmosphere that provides incentives and created Energy Efficiency Revitalization other opportunities for new and existing program to promote reinvestment and business growth energy efficiency improvements to C/I property owners amend Micro Loan,create housing programs approved tap room ordinance to permit breweries to sell sell liquor on the same site it was brewed,increases Elk River's competitive edge,identifying revisions of existing tools and creation of new tools applicable to Elk River's development climate staff time,dollars completed 171st Focused Area Study Encourage transportation Opportunities-foster a pro-business moving forward with phase one improvements as part of atmosphere that provides incentives and improvements of Nature's Edge Business redevelopment/development other opportunities for new and existing Center,anticipated completion late opportunities business growth summer 2012,explore other programs El REQUEST FOR ACTION River TO ITEM NUMBER Housing&Redevelopment Authority AGENDA SECTION MEETING DATE PREPARED BY August 13, 2012 Clay Wilfahrt,Assistant Director of Economic Development ITEM DESCRIPTION REVIEWED By Review the 2013 Marketing Budget Annie Deckert, Director of Economic Development REVIEWED BY ACTION REQUESTED Review the 2013 HRA Marketing Budget BACKGROUND/DISCUSSION The HRA plays a vital role in marketing key housing and foreclosure initiatives to the residents of Elk River. In 2013,with the proposed addition of a housing intern,potential implementation of internal and external housing programs,increased foreclosure prevention efforts,researching grant opportunities, housing study and Downtown Revitalization plan implementation,in addition to increased promotion of downtown events and businesses, staff plans to increase the marketing efforts of the HRA. The attached document outlines the anticipated marketing spending of the EDA and HRA. Staff has used a similar document in prior years to guide marketing initiatives,however has put together the attached detailed document to increase efficiency and use as a tool to ensure the EDA and HRA marketing dollars are spent wisely. As outlined in the document, staff plans to promote new and existing housing initiatives by sending out three direct mailers to all Elk River households,in addition to other initiatives as noted in the work plan. Staff plans to promote downtown Elk River by developing and distributing at least 2,000 brochures to include events, a business map, and other pertinent information about downtown Elk River. Because of the increased marketing staff is increasing the proposed 2013 HRA budget Marketing and Advertising line item from$2,500 to $15,000. ATTACHMENTS • EDA and HRA 2013 Marketing Work Plan Action Motion by Second by Vote Follow Up POWERED Il l NATURE I YLik.$ mct p m W ^ 444.A.. b vy 1 �y 4 r• 31 Q grim m ,n o R 'b O .� -:- �� � r 0 v O n o . a O gl T. m v 0 o -:s 5 ,_,g x o-o 0 0 v . , o N 4 o o o S o 4' 5 e c r"U w l M= e fix.. 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