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3.1 HR MIN 10-01-2012 MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, OCTOBER I, 2012 Members Present: Vice Chair Toth,Commissioners Kuester,Lieser and Motin Members Absent: Chair Wilson Staff Present: City Administrator Cal Portner;Recording Secretary Debbie Huebner Also Present: Fred McCoy,representing Downtown Rivers Edge Business Association; Jim Soderberg,Granite Shores 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 1.2012 HRA Agenda MOVED BY COMMISSIONER KUESTER AND SECONDED BY COMMISSIONER MOTIN TO APPROVE THE OCTOBER 1,2012 HRA AGENDA AS PRESENTED. MOTION CARRIED 4-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER KUESTER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1 SEPTEMBER 4,2012 HRA MEETING MINUTES 3.2 BALANCE SHEET 3.3 REVENUE/EXPENDITURE REPORT MOTION CARRIED 4-0. 4. Open Forum—No one appeared for Open Forum. 5. Downtown River's Edge Business Association Presentation Fred McCoy,owner of McCoy's Pub and representative for the Downtown River's Edge Business Association,gave a presentation regarding the group's activities. He provided details regarding the following upcoming events: • October 25—4th Annual Art Crawl • October 26-Pumpkin Roll,Treat or Treating in the downtown • November—Large Christmas tree in the River's Edge Park,with possible lighting ceremony after Thanksgiving Housing&Redevelopment Authority Page 2 October 1,2012 • December—Holiday celebration (gift bags from Santa,entertainment,pictures with Santa and reindeer,etc.) Commissioner Toth asked for details on the pumpkin roll. Mr.McCoy explained how the game works,noting that the event raised$500 which paid for the Christmas tree last year. Commissioner Motin stated he had heard there was talk about locating the tree by Granite Shores. Mr. McCoy stated that Mr. Soderberg of Granite Shores stated he would like the tree in front of their property and has stated they would pay for it. Mr.McCoy stated that he felt it makes more sense for the tree to go in the park, since it is more centrally located. He noted that they are still negotiating on the tree location. Mr. McCoy noted that he will be talking with the Cinema building owner and Parks&Rec regarding placing speakers in the park with a loop-fed system to play Christmas music every evening until about 9:30-10:00. Commissioner Kuester asked Mr.McCoy if he knew if ice cream sales were up during the concert series. Mr. McCoy stated that he did not have specific information,but he felt overall business was up during the concerts and Farmer's Market and the events were well received. Commissioner Lieser commended the Downtown Rivers Edge Association for coming up with great ideas to bring people to the downtown. Mr.McCoy noted that he felt the new downtown parking area makes the downtown more visible from Highway 10. Commissioner Toth stated that the HRA is very proud of what the River's Edge group has done to bring people to the downtown. Jennifer Wagner,Open Reel Media,stated that she,along with Wendy Simenson of Kemper Drug and Tamara Ackerman of Avalon Salon,are the administrators for the River's Edge Facebook page. She stated they focus on the current happenings in the downtown,posting comments and pictures. She stated she also share posts by Parks&Rec and Economic Development. She stated that businesses can ask her to post specials. She noted they are continuously updating the page to encourage people to come to the downtown. 6. Granite Shores—Jim Soderberg&Associates Presentation Jim Soderberg reviewed a report detailing the profile of the residents at Granite Shores, including demographics (i.e. age,income levels,gender,marital status,renter's previous locations,reasons for moving) and the methods of advertising which were utilized by the current residents. He reviewed changes and new amenities,including an entertainment with large flat screen TV,pampered paws dog wash,and community room with updates and improvements.He stated they are exploring the potential to add a larger deck to allow street side renters greater access to the river side. Mr. Soderberg discussed his concerns regarding the retail space. He stated that they have begun construction on approximately 2,000 square feet as Granite Shores Office Suites. One of the concerns that arises in discussions with potential tenants for the retail space is the parking. He stated that they feel there is an oversupply of office/retail space in the Housing&Redevelopment Authority Page 3 October 1,2012 downtown,and that it would be in everyone's best interest to convert the remaining 8,000 square feet into 8 additional luxury apartments. Mr. Soderberg reviewed the basis for his conclusion,including demands for on-street parking on Main Street,the positive impact on other commercial owners in the downtown by decreasing the amount of vacant retail/commercial space,and the finding in the Housing Market Study which indicates the highest demand is for rental. Commissioner Motin asked if any of the condominium owners that were bought out have stayed. Mr. Soderberg stated that one resident stayed. Commissioner Motin stated that he was concerned the housing study focused too much on immediate needs,which may not necessarily be in the best interest of the city for the future. He stated if they built more rental housing,residents are likely to come,but he was not convinced turning the office/retail space into residential was a good idea. Mr. Soderberg discussed his projections regarding future increase in the number of seniors looking for this type of housing. He suggested finding a way to add 30 of 40 parking spaces. He stated that he has not seen any demand for the commercial space,even though they have done extensive advertising. He stated he would love to fill the space up with commercial, but he does not feel there is enough parking. Commissioner Toth asked if the businesses have concerns about parking. Mr. Soderberg stated that the feedback he received from potential businesses is that there is not enough parking close to the building. He stated that a coffee shop or fitness facility would completely pack those spaces close to the building. He stated that he feels the residents will shop at the businesses downtown and having more residents is a win-win situation. Commissioner Kuester stated that she was unable to park near the cinema building and was told by the owner that the employees of the businesses fill up all the parking spaces close to the building. Commissioner Toth stated that if employee parking in front of the buildings is an issue,it needs to be look at. Commissioner Motin stated the businesses need to be encouraged to park behind the buildings. Mr. McCoy stated that most of the businesses in the Cinema Building are one-person offices and they have someone watch for the CSO to mark the tires,so everyone scrambles to move their cars. Commissioner Lieser asked if there would be enough underground parking if additional apartment were added. Mr.Soderberg explained that 22 spaces were reserved for the office space,and if 8 additional units were added with 2 spaces for each unit,the total parking required would only be 16 spaces. He discussed the various types of businesses he would like in the building such as a fitness center or coffee shop/wine bar,but there just isn't enough parking. Mr. Soderberg stated that there is a demand for 2-bedroom units,and they currently have very few. Commissioner Toth asked if the 22 spaces are available. Mr. Soderberg stated that the spaces could not be used by the public,because they would have access to the apartment building. He noted that all commercial tenants must go through a background and credit check for this reason. Commissioner Toth stated the parking in front of the building does seem to be full. Mr. Soderberg stated he will encourage all the tenants to use the underground parking,as well as contractors working in the building. Housing&Redevelopment Authority Page 4 October 1,2012 Commissioner Motin stated that even though he disagrees on changing the commercial/retail space to residential,he commended Mr. Soderberg on doing an extraordinary job with the building and stated that it looks great. Mr. Soderberg distributed information regarding his presentation at this time (Summary of Findings). Commissioner Toth stated he agreed with Commissioner Motin on how the building looks, but he also had concerns regarding the change to residential. Mr.McCoy stated he wished to complement the EDA Department on their huge support to the downtown businesses. He stated that they bend over backwards to help them with all their events,and he wanted to thank them. 7. Adjournment There being no other business,Vice Chair Toth adjourned the meeting. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:15 p.m. Minutes prepared by Debbie Huebner. Tina Allard City Clerk Larry Toth Vice Chair,Housing and Redevelopment Authority