01-05-2004 HR MIN WORKSESSION DOWNTOWN REVITALIZATION PROJECT WORKSESSION
• OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT ELK RIVER SENIOR HIGH SCHOOL
LITTLE THEATER
MONDAY,JANUARY 5, 2004
Members Present: Chair Wilson,Commissioners Thompson,Lieser,Motin and Toth
Staff Present: Catherine Mehelich,Executive Director;Assistant Director of Economic
Development Heidi Steinmetz,City Administrator Pat Klaers,and City
Engineer Terry Maurer
Call the Downtown Revitalization Worksession to Order
The Downtown Revitalization Worksession of the Elk River Housing and Redevelopment
Authority was called to order at 5:30 p.m.
1. Project Communications
Assistant Director of Economic Development Heidi Steinmetz provided the HRA with an
overview of project communications since the inception of the project two years ago. Ms.
Steinmetz asked the HRA for suggestions for change in the communications process. The
HRA had no comments.
• Cliff Lundberg,400 Jackson Ave.NW—Mr.Lindberg asked the HRA if the legal issues
regarding the ownership of the Jackson Square property had been resolved.
Director of Economic Development Catherine Mehelich informed the audience and the
HRA that the abstract of the Jackson Square property had been completed but that the legal
description of the property still needed to be reviewed for title commitment. Ms.Mehelich
explained that the delay in completing the title commitment was due to the non-existence of
an abstract and the issue of Sherburne County's conflicting information on the property.
City Engineer Terry Maurer added that the Jackson Square property will be surveyed once a
title commitment for the legal description is completed.
Ms.Mehelich mentioned that this is a very important issue to the developer and the City and
that the Jackson Square ownership issue must be resolved.
2. Downtown Parking Options
City Engineer Terry Maurer presented the HRA with the following downtown
redevelopment parking options,including the related expenses for each option:
• Constructing a pedestrian bridge over Hwy 10
• Removing the Municipal Utilities building,closing off King Ave.,constructing and
redesigning the lot behind Kemper Drug,and adding new parking stalls
• • Adding a ramp to the above mentioned parking lot
HRA Work Session Notes
January 5,2004
Page 2
Keith Holme, (co-owner of Kemper Drug) —Mr.Holme asked if the redesigned parking
lot would have downtown employee designated parking. Mr.Holme also mentioned the
issue that commuters currently use valuable parking spaces in the lot behind Kemper.
City Administrator Pat Klaers stated that a more suitable place for commuters to park is in
the lot along the railroad tracks on north side of Hwy 10.
Keith Holme, (co-owner of Kemper Drug) —Mr.Holme stated that closing King Ave.
would help solve the problem of commuters parking in the lot behind Kemper Drug and
that it is a good idea to force commuters to utilize the parking on the north side of Hwy 10.
Catherine Mehelich asked the HRA to consider if additional downtown parking will be
provided by the City regardless of a downtown revitalization project.
Discussion took place between the audience,city staff,and the HRA regarding the parking
options presented by Mr.Maurer. Several audience members concurred that the pedestrian
bridge option would be ineffective.
The HRA discussed whether or not it would be possible to add a parking ramp above the
redesigned lot option. Terry Maurer stated that it would be possible;however there would
be additional costs to prepare the lot to withstand a future ramp addition. Chair Wilson
asked Mr.Maurer to adjust the numbers to reflect the eventual addition of a parking ramp.
Commissioner Motin stated that he agreed with comments from the audience that a
pedestrian bridge would be ineffective. He stated that the demolition of the Municipal
Utilities building should take place regardless of the Downtown Revitalization Project. Mr.
Motin added that the pedestrian crosswalk countdown timers are a good idea.
3. Development Agreement Issues
Jim Prosser of Ehlers and Associates provided the HRA with an overview of the Downtown
Revitalization Project since the developer,MetroPlains,was chosen in August 2002 by the
HRA.
Sid Inman of Ehlers and Associates stated that there are two issues in which city staff
requests direction from the HRA: 1)The HRA's standards on the redevelopment of the
Bluff Block in conjunction with the Jackson Block and 2)The HRA's willingness to provide
MetroPlains with financing in the form of a loan for the construction of the Bluff Block.
Marcy VanValkenburg Baxter,MN(Elk River Travel) —Ms.Vanvalkenburg stated that at
a past City Council meeting,Mayor Klinzing stated that the Jackson Block development
would not occur without the Bluff Block development.
Chair Wilson concurred with Ms.VanValkenburg.
The HRA discussed the issue in length and concurred that the redevelopment project should
include both the Jackson and Bluff Block developments and that provisions must be made
in the development agreement to ensure both developments occur.
HRA members asked Mr.Inman and Mr.Prosser several questions regarding the second
410 issue of providing a loan to MetroPlains for the construction of the Bluff Block. The HRA
HRA Work Session Notes
January 5,2004
Page 3
did not concur nor deny the issue,but directed staff to resolve with MetroPlains the
• assurances that both projects would be completed.
Chair Wilson asked Mr.Inman what the cost would be of the potential financing request
from MetroPlains. Mr.Inman stated the potential request,if equal to the projected value of
the tax increment financing,would be approximately$1.2 million.
Chair Wilson stated that it is important that this project happen and asked Mr.Inman,Mr.
Prosser,and city staff to continue negotiations with the developer.
The work session of the Housing and Redevelopment Authority was adjourned at 6:45 p.m.
Submitted by,
Heidi Steinmetz
Assistant Director of Economic Development
•