06-07-2004 HR MIN MEETING OF THE ELK RIVER
4110 HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY,JUNE 7, 2004
Members Present: Chair Wilson,Commissioners Thompson and Lieser. Commissioner Motin
Arrived at 5:03 p.m.
Members Absent: Commissioner Toth
Staff Present: Executive Director of Economic Development Catherine Mehelich,
Assistant Director of Economic Development Heidi Steinmetz,City
Administrator Pat Klaers,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 June 7,2004 HRA Agenda
MOVED BY COMMISSIONER THOMPSON AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE JUNE 7,2004,HRA AGENDA
5 AS PRESENTED. MOTION CARRIED 3-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER LIESERAND SECONDED BY
COMMISSIONER THOMPSON TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
1. MAY 3,2004 HRA MINUTES
2. CHECK REGISTER
3. APRIL 2004 REVENUE/EXPENDITURE REPORT
4. APRIL 2004 BALANCE SHEET
5. MAY 2004 REVENUE/EXPENDITURE REPORT
6. MAY BALANCE SHEET
MOTION CARRIED 3-0.
Commissioner Motin arrived at this time (5:03 p.m.)
4. Open Mike
There was no one present for Open Mike.
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June 7,2004
5. Downtown Revitalization Project Update
• Director Catherine Mehelich explained that the Key Points to a Final Development
Agreement with MetroPlains were approved by the HRA in May,which included a plan for
the Bluff Block to proceed prior to,or simultaneously with,the Jackson Block construction.
She reviewed the next steps which include establishment of a tax increment financing plan
and drafting a final development agreement. She noted that drafting of the development
agreement will run concurrent to the TIF process and referred the Commissioners to the
schedule of events for the TIF plan submitted by Ehlers&Associates in their packet. Ms.
Mehelich stated that MetroPlains anticipates starting construction of the Bluff Block by
Spring 2005.
Commissioner Motin asked for clarification on the September 6,2004 reference to "Plans"
on the schedule of events. Ms.Mehelich stated that the"Plans" refer to the TIF Plan,
noting that there may be one district for both projects. He questioned why the Planning
Commission is scheduled to review the Plan before the HRA. Ms.Mehelich stated that this
is due to the timing of meetings and that the Planning Commission review could be
scheduled after the HRA,if desired. She explained that the Planning Commission's review
consists of making a determination for whether or not the Plan is in compliance with the
City's Comprehensive Plan. The Commission concurred that the schedule was satisfactory
as presented.
Chair Wilson opened the meeting to comments from the public.
Keith Holme, co-owner of the Kemper Drug building, stated that Mr.Nadeau informed
• him that no one has been in contact with him regarding purchase of his property.
Cliff Lundberg,400 Jackson Avenue,asked when the developer would be providing the
development cost information. He questioned how the TIF Plan could be completed
without knowing the costs of the project. Ms.Mehelich stated that the developer has
obtained preliminary bids and that firm costs will be included in the final development
agreement. Mr.Lundberg questioned what other types of funding the City would be
providing over and above the TIP. Ms.Mehelich stated that reductions in the SAC and
WAC,and a dedicated us of park dedication fees are under discussion. She noted that the
key points agreement includes language to ensure that the City is not providing too much
assistance.
Commissioner Thompson asked if the TIF will be set up as a"pay-as-you-go"note.Ms.
Mehelich stated yes.
Mr.Lundberg suggested that the financial information for the project be put on the City's
website.
Mr.Holme stated that he felt the information should be published in the Star News. He
asked if the two projects would be constructed simultaneously,and if not,would the Bluff
Block will be constructed first. Chair Wilson stated yes. Chair Wilson noted that Mr.
Holme's question regarding Mr.Nadeau's property should be directed to the developer.
Jeanne Kelsey of MetroPlains Development,explained that Ken Brooks,Broker for KJB
Real Estate Services,has been in contact with Mr.Nadeau and that the preliminary
• environmental work has been completed on his property.
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June 7,2004
Ms.Steinmetz suggested that Mr.Lundberg set up an appointment to go over the financial
• information with staff.
Ms.Mehelich noted that a proposal for relocation consultation services has been reviewed
and accepted by the City Attorney. She stated that Conworth,Inc.,the relocation advisors,
have been authorized to start working with the affected property owners and tenants and
that the cost for these services would be borne by MetroPlains.
6. Arrow Building Center Redevelopment Project Update
Assistant Director Heidi Steinmetz stated that Arrow Building Center has withdrawn their
request for City Tax Rebate Financing. She noted that they have decided to seek a site in
another city due to challenges on the redevelopment site to accommodate the needs of the
lumberyard expansion.
Commissioner Thompson asked if they have been working with staff for another site in Elk
River. Ms.Steinmetz stated that there are no other suitable sites where outdoor storage is
permitted. She noted that outdoor storage is allowed in Cascade Industrial Park,but all of
the parcels are sold and the new site would likely require city water for sprinkler systems.
The Commissioners expressed their regret that Arrow was planning to move out of Elk
River.
7. Call Special Meeting for Wednesday,June 30,2004 for a Worksession Regarding a
Redevelopment Plan for North of the Railroad Tracks Downtown
1111 Ms. Steinmetz stated that Wednesday,June 30,2004 has been tentatively set for the
worksession to discuss a redevelopment plan for the downtown area north of Highway 10.
MOTION BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER THOMPSON TO CALL A SPECIAL MEETING OF THE
HRA FOR A WORKSESSION AND TO DISCUSS REGULAR BUSINESS ON
WEDNESDAY,JUNE 30,2004 AT 4:00 P.M.IN THE UPPER TOWN
CONFERENCE ROOM AT CITY HALL. MOTION CARRIED 4-0.
8. Discuss Schedule Options for July I-RA Meeting
Ms.Mehelich stated that several HRA Commissioners have scheduling conflicts with the
July 6th Regular HRA meeting. She noted that calling a public hearing for the Downtown
Project TIF Plan could be approved as a consent agenda item at the June 30th Special
Meeting.
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO CANCEL THE JULY HRA MEETING.
MOTION CARRIED 4-0.
9 Adjournment
There being no other business,MOVED BY COMMISSIONER THOMPSON AND
SECONDED BY COMMISSIONER LIESER TO ADJOURN THE MEETING.
MOTION CARRIED 4-0.
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June 7,2004
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 5:30 p.m.
Debbie Huebner
Recording Secretary