09-04-2012 HRA-CC JOINT MEETING MIN SPECIAL MEETING OF THE ELK RIVER
• HOUSING AND 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 Jennifer Johnson
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:
4110 • 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 community. 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 24th. 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 Deb.'- uebner.
TAI Allard
Ci Clerk 2
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Stewart Wilson
Chair,Housing and Redevelopment Authority
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