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4.1. DRAFT MINUTES 11-05-2012 SPECIAL TI THE ELK IV HOUSING REDEVELOPMENT AUTHORITY AND CITY COUNCIL HELD AT THE ELK RIVER CITY HALL TUESDAY, SEPTEMBER 4, 2012 HRA Members Present: Chair Wilson, Commissioners Kuester,Lieser,Toth, and Motin Council Members Present: Mayor Dietz, Councilmembers Gumphrey,Motin,Westgaard,and Zerwas Members Absent: No one Staff Present: City Administrator Cal Portner,Planning Manager Jeremy Barnhart;Director of Economic Development Annie Deckert; Assistant Director of Economic Development Clay Wilfahrt and Recording Secretary Debbie Huebner 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 6:00 p.m. by Mayor Dietz. Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment Authority was called to order at 6:00 p.m. by Chair Wilson. 2. Housing Study Presentation—Maxfield Research Assistant Director of Economic Development Clay Wilfahrt introduced Matt Mullins of Maxfield Research. Mr. Mullins provided a PowerPoint presentation of the housing needs analysis completed by Maxfield Research. He stated that the purpose of the housing study is to identify current and future housing needs for residents and provide the framework for meeting those needs. Mr. Mullins reviewed population and income demographics. He also discussed new construction building permits,housing units for sale,rental,and senior housing. Mr. Mullins explained recommendations of the study including: • Absorb existing supply of single-family lots before approving new subdivisions/lots • Absorb existing supply before approving additional townhome developments • Consider additional 65-80 units (25-30 active adult/40-50 congregate units) • Consider increasing overall number of rental units,since this is a very active market right now Mr. Mullins reviewed a number of topics addressed in the study including affordable housing,code enforcement,property taxes, challenges of development costs/versus achievable rents,and the impacts of the foreclosure market,transit station and excess supply of platted lots. Further recommendations included: ® Acquisition of land for future development Housing&Redevelopment Authority Page 2 September 4,2012 • Promotion of first-time home-buyer programs • Renovation of housing stock Mayor Dietz noted that Otsego,Zimmerman and Rogers are also in the same school tax district. Councilmember Motin asked if distressed properties were included in the total of housing sales. Mr. Mullins stated yes. Councilmember Motin stated that the purpose of the study was to figure out if there is the right mix of housing types in Elk River. He stated the study talks more about demand does not tell us what the proper mix should be. Councilmember Motin stated that if they built more affordable housing and subsidized housing the people would come,but he questioned if this is what we want. He stated he did not feel the city should provide additional affordable housing just for the sake of getting more residents. He stated the projected growth is 35,000-40,000 people,so we are not growing just for the sake of growth and they want to do it in the right way. Mr.Mullins stated that he felt the city has a diverse housing stock and is well-situated,as far as the housing products types that are offered. He did not find a lot of demand in the short term,since the existing stock will meet that need.He stated he would not recommend more than one affordable housing project. He explained that there is clearly a need for more upscale rental housing with amenities,such as the Granite Shores project. Elk River's vacancy rate is 2.5 percent and he feels that should be more towards 5 percent. He stated that multifamily development is where the short term needs are. Commissioner Toth asked for clarification on Mr.Mullins'statement that finding housing is not a problem for manufacturing employees. Mr.Mullins stated that this is an issue in some communities where employees cannot find housing that they can afford. He stated that a goal would be to have ample housing for new employees to move to Elk River. The comments he received indicated that this is true. Chair Wilson stated that he concurred that multifamily and single family rental housing is becoming more popular. He asked what effects the shift from home owner to renter will have on the cominunity. Mr.Mullins stated that the prediction is rental housing will continue to grow through 2014. He stated that 80 percent homeownership in Elk River is very high. The study indicates that rate will remain strong in Elk River. He stated that affordability for home ownership is at all-time high. Rents are quite substantial due to high costs of multifamily construction. He stated that one of the challenges for Elk River is the number of single family or townhomes are being rented today. With the low home prices, investors can come in a buy up properties at a low cost and provides a good cash flow for them. Chair Wilson agreed that there is a market for renting,but people would tend to stay in Elk River longer if they owned their home. 3. Review Downtown Task Force Plan HRA Chair Stewart Wilson presented the first portion of the Downtown Task Force Plan, which covered"why are we doing this?"and"how did we get here?" Planning Manager Jeremy Barnhart noted that an open house will be held on September 13th from 4-8 pm. He explained that comments will be taken thru September 241h. He anticipated that the final/revised plan will be presented to the Council in December. Housing&Redevelopment Authority Page 3 September 4,2012 Mr.Barnhart presented the last portion of the plan which outlines strategies to invigorate the core area of Elk River to create a theme that can be built on over time;additionally,signage could provide a link to the train station. The study also suggested new Main Street signage to reinforce the idea of entering a historical or heritage area. Mr.Barnhart stated the plan recognizes that we expect changes to occur;we don't know when they will happen,but when they do happen,they will have very drastic impacts on the businesses downtown as well as the adjacent residential neighborhood. He stated the idea is to strengthen those areas now, so that when the changes occur,the area can weather those impacts. Mr.Barnhart stated that the plan breaks the study into six different sub-areas with each sub are having specific strategies to achieve an objective. The areas are: 1) Recreational opportunities;2) Core downtown;3) Highway 10 area;and 4) North Highway 10;5) Residential areas;and 6) Proctor and Quinn. Councilmember Zerwas stated that he and Councilmember Gumphrey attended the Downtown Task Force meetings. He expressed"hats off'to Mr.Barnhart,HRA Chair Stewart Wilson and Planning Commission Chair Dana Anderson for their work on the plan. He stated that change is inevitable but the timing of those changes is unclear. He supported the plan,stating that the city needs to be mindful and plan for the changes so that we are not shocked when they occur. Commissioner Toth stated that some of the changes are better than the previous plans showed. He stated that he felt it was good to know where the city is going. 4. Adjournment There being no other business, Chair Wilson adjourned the meeting. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 7:15 p.m. The meeting of the City Council adjourned at 7:15 p.m. Minutes prepared Debbie Huebner. Tina Allard City Clerk Stewart Wilson Chair,Housing and Redevelopment Authority Mayor John J. Dietz 4l✓' i n 68 MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE CITY OF ELK IV (UPPER TOWN CONFERENCE ROOM) MONDAY, OCTOBER 0, 2012 Members Present: Mayor Dietz,Councilmembers Gumphrey,Motin(8:09 p.m.),Westgaard, and Zerwas Members Absent: None Staff Present: City Administrator Cal Portner,Finance Director Tim Simon,Parks and Recreation Director Michael Hecker,Human Resources Representative Lauren Wipper,Environmental Administrator Rebecca Haug, City Attorney Peter Beck,Street Superintendent Mark Thompson,Parks Supervisor Rodney Schreifels,Recreation Manager Steve Benoit,City Engineer Justin Femrite,IT Manager Robert Pearson,and Executive Secretary/Deputy City Clerk Jessica Miller 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:30 p.m. by Mayor Dietz. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider Council Agenda MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER WESTGAARD TO APPROVE THE AGENDA. MOTION CARRIED 4-0. 4. Consider Consent Agenda MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE FOLLOWING CONSENT AGENDA: 4.1. OCTOBER 1,2012,REGULAR MEETING MINUTES. 4.2. AGREEMENT BETWEEN THE CITY OF ELK RIVER AND ALLINA HEALTH EMERGENCY MEDICAL SERVICES FOR FIRST RESPONDER TRAINING AND MEDICAL DIRECTION OVERSIGHT SERVICES. 4.3. SPECIAL EVENT PERMIT TO EARLY CIIILDHOOD FAMILY EDUCATION FOR A 2K AND 5K RUN/WALK, SUBJECT TO THE FOLLOWING CONDITIONS: 1. APPLICANT SHALL BE RESPONSIBLE FOR GARBAGE CLEAN-UP IMMEDIATELY FOLLOWING THE EVENT. 2. WALKERS/RUNNERS ARE TO UTILIZE SIDEWALKS,TRAIL SYSTEMS, OR ROAD SHOULDERS THROUGHOUT THE ENTIRE ROUTE.NO ROAD CLOSURES WILL BE City Council&fiuoteo Page October 8,2012 PERMITTED. ITlS EACH RUNNER'S RESPONSIBILITY TO ENSURE THE STRBBTS/INIEBSECTlONS ARE SAFE PRIOR TO CROSSING. 3' IICFESBALL DESIGNATE RACE MARSHALS IO MONITOR THE RACE ROUTE AND PARTICIPANTS. MOTION CARRIED 4-0. 5. Open Forum No one appeared for open forum. 6. Work Session 6.1. Ditch Aacement Mr. Simon presented the staff report. Diane Arnold,Sherburne County Auditor and Mike lJndeuou Sherburne County Public Works Ditch/Drainage Technician provided uu overview and history of the Elk River ditches. Ms.Arnold distributed u map outlining Elk River's ditches. She stated that the city began paying 6orxU6itchnm6knithiuIlDxDivcriuG6cluto1990a. Shcu66c6t6utIDkRivoz is the only entity in Sherburne County currently not billing bcnefitted property owners. It was noted that there does not appear to be a contract on file between the city and the county relating to the ditch work. Mr.Beck stated his recollection io that the 6tydoo�ed to take over control of the 6�c6work work�ronu6uotocoonmtccimpact fee ounew development. f{o stated that the city needed special legislation auth i i the county to turn over control of the ditch work and the county assisted the city in obtaining this permission. He stated that this is a good time to revisit that policy. Ms.Haug stated that ditch work is currently funded through a surface water management fee that developers pay when new development occurs. She added that with the lack of new development, the fund is nearly depleted and a new source of revenue is necessary. Ms.Arnold explained that the county only does ditch work when a request or complaint is received. She stated that there iauo preventative maintenance,J ontoiumoozmaintenance. Mayor Dietz requested that roouryand city staff come back with additional information. I{o added that he would like to see information on how much residents would have been uaa0000d for ditch work ifthe county had Jouc the u000uaoucuto. 6.2. 2013 Flexible Benefit Desiga Ms.Wi`per presented her staff report. She outlined the options and the potential savings if cozploy000uzo given tboop6outooptnotoFhoulthiuonruuco. Council consensus was to move forward with the change in fife insurance carriers,a 4% increase bu the city contribution,u 1%increase io the I{SA contribution,and to uUon/ City Council Minutes Page 3 October 8,2012 employees the option to opt out of the city's health insurance. This item will come back next week for formal approval. 6.3 Yellow Ribbon Suns Mayor Dietz indicated that the Yellow Ribbon Committee would like to install four small Yellow Ribbon Community signs on Elk River's population signs. He stated the Yellow Ribbon Committee will pay for the signs and MnDOT will install. Mr.Portner noted that he discussed this issue with Councilmember Motin and he has no concerns. Council consensus was to move forward with the Yellow Ribbon Community signs. 6.4 Houlton Property Update Mr. Hecker stated that staff and members of the Parks and Recreation Commission toured the Houlton property for sale.Mr.Hecker presented pictures from the tour. He also discussed some possible funding partners. Mayor Dietz questioned what the land could be used for.Mr. Hecker stated that there is the potential for ball fields and other recreational amenities.He noted that some funding options could limit the recreational uses and certain conservation funding could prohibit any public use of the land. Mayor Dietz stated he has no problem exploring funding sources for the property but the city would be unable to purchase the property without funding support. 6.5. Recycling Rebate Program Ms. Haug presented her staff report. Council consensus was to terminate the recycling rebate.This item will be brought back at the next meeting for formal approval. 6.6. Activity Center Staff Restructuring Mr.Hecker presented the staff report. He noted that the city no longer has office space at Guardian Angels. Council consensus was to increase Annette Bonin and Natalie Anderson's hours to 40 per week,approve the revised senior citizen coordinator position description and appoint Ms. Bonin to that position,and approve the revised senior citizen programmer position description and appoint Ms.Anderson to that position.This item will come back next week for formal approval. 6.7. Assessment Manual/Policy/Funding Options Mr. Femrite outlined his staff report. City Council Minutes Page 4 October 8,2012 The Council discussed the pros and cons of switching to a tax-based levy approach or a franchise fee process similar to some other cities for funding street improvement projects. There was some concern about how to treat those that have paid assessments in the past. Councilmember Gumphrey indicated he believes a levy-based program would provide consistent funding and allow for more projects to be completed each year.He also noted that he would like to see a way to credit residents who have paid assessments in the past five to seven years. Councilmember Westgaard concurred. (Councilmember Motin arrived 8:09 p.m.) Mr. Femrite stated that if the Council would like,staff can do a more in-depth study on what the public process to change the policy would entail and come back with proposed options for making it fair on those that have paid previous assessments. Mr. Femrite stated that he will hold off on the Assessment Manual updates until a more definite decision on funding is made. He proposed beginning the 2013 Street Improvement project continuing with past practice of assessing the project. This will allow for the preliminary work on developing the project to begin while reserving the ability to assess the project if no funding policy changes are made. Councilmember Gumphrey would like to make the change soon if a change is going to be made. Councilmember Motin stated he is in favor of switching to the levy-based approach but would like the financing phased in to make the process fair for residents who have recently paid assessments. Council consensus was for Mr. Femrite to report back to the Council with additional information about a franchises fee versus tax-based approach and the options for making it fair to residents who have recently paid assessments. 6.8. 2013—2017 Capital Improvement Plan Mr. Simon presented his staff report on the city's Development Fund, Capital Outlay Reserve Fund,Park Dedication,and GRE Reserve Fund. Mr.Pearson reviewed the technology replacements over the next five years. Mr. Hecker and Mr. Schreifels reviewed proposed park projects.They stated that staff will work to prioritize the projects. The Council would like staff to see if trail repairs in Kliever Lake Fields can be tied back to the developer since the development is still in progress. Mr. Hecker stated that the Parks and Recreation Commission unanimously supported removing the downtown parking lot landscaping from next year's Capital Improvement Plan. It was noted that the school district would like to complete the Oak Knoll irrigation repair soon and is interested in splitting the cost with the city.Mr. Simon stated he will provide an update once actual pricing on the repair has been received. City Council Minutes Page 5 October 8,2012 Discussion took place on increasing the transfer from the municipal liquor store to the Park Improvement Fund in order to begin addressing park maintenance projects. Councilmember Zerwas stated that he does not have an issue increasing the amount but believes tripling the amount is excessive. Councilmember Westgaard concurred. He added that purchasing and installation is only a portion of the funding process and that staff should also budget maintenance when considering improvements. Mayor Dietz indicated that he believes increasing the transfer to$300,000 is not unreasonable. Council consensus was to continue discussion on the parks Capital Improvement Plan when the remainder of the CIP discussions are held next month. 6.9. 20132013 Budget Mr. Simon presented his staff report. Council consensus was to spread the Spectrum PILOF over four years and to add a.5% employee turnover into the budget and the rest of the adjustments as listed. 6.10. Council Omen Forum Mr.Portner stated that most of the iPads have been updated.He stated that a Council Information folder has been added to Dropbox and that staff will put documents the Council may find interesting in this folder.He reminded the Council not to delete documents from Dropbox. 7. Announcements There were no announcements. 8. Adjournment There being no further business,Mayor Dietz adjourned the meeting of the Elk River City Council at 9:57 p.m. Minutes prepared by Jessica Miller. John J.Dietz,Mayor Tina Allard,City Clerk