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02-02-2004 HR MIN MEETING OF THE ELK RIVER • HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, FEBRUARY 2, 2004 Members Present: Chair Wilson,Commissioners Thompson and Lieser Commissioner Motin arrived at 5:01 p.m. Members Absent: Commissioner Toth Staff Present: Director of Economic Development Catherine Mehelich,Assistant Director of Economic Development Heidi Steinmetz,City Administrator Pat Klaers,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 5:00 p.m.by Chair Wilson. 2. Consider February 2,2004 HRA Agenda MOVED BY COMMISSIONER THOMPSON AND SECONDED BY COMMISSIONER LIESER TO APPROVE THE FEBRUARY 2,2004 HRA AGENDA AS PRESENTED. MOTION CARRIED 3-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER THOMPSON AND SECONDED BY COMMISSIONER LIESER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 1. JANUARY 5,2004 HRA MINUTES AND WORKSESSION NOTES — APPROVED 2. CHECK REGISTER-APPROVED MOTION CARRIED 3-0. 4. Open Mike There was no one present for Open Mike. 5.2. Consider Extension of Preliminary Development Agreement with MetroPlains Development,LLC Executive Director Catherine Mehelich stated that the October 2002 Preliminary Redevelopment Agreement provided the framework for examining the MetroPlains proposed project. A six-month extension was granted in April 2003 and a second extension to January 30,2004 was granted in October 2003. MetroPlains is now requesting an extension to March 1,2004 in order to work out the terms of the development agreement • and to draft the necessary language for the HRA's review and consideration at a regular meeting. Staff recommends that the HRA grant the extension to April 5,2004. HRA Meeting Minutes February 2,2004 Page 2 Commissioner Motin asked Mr.Vern Hanson of MetroPlains when the financing would be approved. Mr.Hanson stated that MetroPlains was awarded their first allocation of tax credits for the Jackson Block housing in fall of 2003. He stated that he did not want the Commission to feel that they were being strung along,and that the only remaining issue is the language for the Bluff and Jackson Block developments. Mr.Hanson explained that a request for additional tax credits will go to the Minnesota Housing Finance Agency in early February 2004 and that the Department of Employment and Economic Development grant application award has been extended to early April. Keith Holme,co-owner of the Kemper Drug building,stated that he discussed parking issues when he met with Jim Prosser of Ehlers&Associates. Mr.Holmes stated that local realtors feel that MetroPlains'estimates for parking needs in the downtown area are not adequate. He asked if additional parking will be provided before construction begins. Mr. Holmes stated that he felt the lack of parking will affect jobs in the downtown. Chair Wilson suggested that Mr.Prosser address this question when he arrives for the meeting. Chair Wilson stated that he did not see any reason not to approve the 60-day extension. Commissioners Lieser,Thompson and Motin agreed. MOVED BY COMMISSIONER THOMPSON AND SECONDED BY COMMISSIONER MOTIN TO GRANT AN EXTENSION OF THE PRELIMINARY REDEVELOPMENT AGREEMENT WITH METROPLAINS DEVELOPMENT, LLC FORA PERIOD UP TO APRIL 5,2004. MOTION CARRIED 4-0. 6. Housing Work Plan—Housing Availability/Affordability Survey Results Assistant Director of Economic Development Heidi Steinmetz explained that as a result of the low response to the housing availability/affordability survey,the HRA directed staff to re-send the survey to the retail/service businesses. Ms.Steinmetz noted there was a 39% response rate from the manufacturers and a 28%response rate from the retail/service businesses. She reviewed the results of the survey,noting that 66%of the sample of retail/service employers feel that Elk River is meeting the housing needs of their employees and 64%of the manufacturing employers feel that Elk River is meeting their employees' needs. The HRA Commissioners concurred with the following recommendations by staff, regarding housing availability and affordability in Elk River: • Utilize existing city plans, such as the Comprehensive Plan and the Economic Development Strategic Plan,to guide housing decisions. • Utilize workforce data to analyze the types of workers and wages in Elk River and compare it to housing affordability/availability in Elk River. • Continue to consider the appropriate housing balance for Elk River. • Conduct an informal housing survey to manufacturers and retail/service businesses on a biannual basis. • HRA Meeting Minutes February 2,2004 Page 3 • 5.1. Downtown Property&Business Owner Feedback Director Catherine Mehelich stated that fifteen"one-to-one"meetings with approximately thirty downtown property and business owners took place during the month of January. The purpose of the meetings was to gather additional input on the Downtown Revitalization Project and parking options. Ms.Mehelich stated that the list of property and business owners who participated in the interviews was provided in the staff report to the HRA. She noted that ten property and business owners did not participate in the meetings due to a lack of interest or no response. Ms.Mehelich reviewed a summary of the thirteen findings generated from the meetings,as listed in the memo from Jim Prosser of Ehlers Associates dated January 27,2004. She then reviewed the nine recommendations from Mr.Prosser regarding parking issues,pedestrian crossing timer for Highway 10 and Jackson Avenue,and improvements to the rear entrances of businesses. Chair Wilson stated that in response to Mr.Holmes question,John Houlton of the First National Bank has offered use of the bank parking during construction. Ms.Mehelich stated that there has been numerous discussions with the business owners regarding options for parking during construction. Mr.Holmes stated that he feels additional parking must be provided before construction begins and that the City needs to promote the commuter parking across Highway 10. • Cliff Lundberg,400 Jackson Avenue NW,stated that the parking on the east side of the Jackson Block needs to be reviewed. He proposed a joint ramped parking project by the City,the developer,and the Bank of Elk River. Mr.Lundberg stated that Nadeau's and US Bank's parking would be lost,and that there would be no customer parking for the new businesses. Commissioner Thompson stated that Nadeau's and US Bank's parking areas are for their own customers,although he is aware that US Bank does allow some public parking. Mr.Hanson stated that the proposed plan does address the parking. He explained that when the existing three curb cuts are removed from the Bluff Block project,the new parking nearly doubles what is currently there. Mr.Hanson noted that there will be some parking stalls on the east side of the Jackson block and that underground parking will be provided for the tenants of the Jackson Block. Ms.Mehelich stated that as the plan is developed,it will go to the Planning Commission and ultimately,to the City Council for approval. Marcy VanValkenburg(business owner,Elk River Travel) stated that she was not contacted for a meeting. Ms.Steinmetz stated that the property owners were contacted first,and asked whether they wanted their tenant(s)to meet with them or separately. The HRA directed staff to proceed in also contacting business owners. Ms.Mehelich stated that staff will follow up with additional meetings with business owners. • HRA Meeting Minutes February 2,2004 Page 4 Tammy Weeks, (business owner of The Jungle),stated that she would like her business to • be considered for buyout and/or relocation before construction of the Jackson Block begins. Ms.Mehelich stated that these considerations are being negotiated and will be worked out prior to approval of the final Development Agreement. Lance Lindberg, (local businessman),asked what is the net number of parking stalls,when considering how many parking stalls there are existing in the Bluff Block area,and how many there will be when the project is completed. Ms.Mehelich stated that she did not recall the exact number for the Bluff Block,but that the information was presented at the August 2003 meeting and that Mr.Lindberg could contact her for the report. Richard Hinrich, (owner of The Jungle building),asked if staff was participating in the negotiations with MetroPlains. Ms.Mehelich stated yes. Mr.Hinrich stated that it appears there is a stalemate between the City and the developer as to whether the Bluff Block will be included. Ms.Mehelich stated that negotiations will continue and that the City needs assurances that both project will move forward. She noted that this takes time and therefore,the extension is needed. Commissioner Motin stated that he would anticipate that the terms of the agreement would be completed by March 1st and that the remaining time is needed to work out the final language. He stated that it is the HRA's position that both projects move forward or there will be no project. He stated that the process is taking so long because there are so many issues and they are attempting to accommodate so many people. • 7. Adjournment MOTION BY COMMISSIONER THOMPSON AND SECONDED BY COMMISSIONER LIESER TO ADJOURN THE MEETING. MOTION CARRIED 4-0. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:00 p.m. Debbie Huebner Recording Secretary •