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09-07-2004 HR MIN MEETING OF THE ELK RIVER • HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL TUESDAY, SEPTEMBER 7, 2004 Members Present: Chair Wilson,Commissioners Toth,Lieser,Motin,and Thompson Members Absent: None Staff Present: Director of Economic Development Catherine Mehelich,Assistant Director of Economic Development Heidi Steinmetz,Recording Secretary Jessica Miller 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 September 7,2004 HRA Agenda MOVED BY COMMISSIONER THOMPSON AND SECONDED BY COMMISSIONER TOTH TO APPROVE THE SEPTEMBER 7,2004,HRA AGENDA AS PRESENTED. MOTION CARRIED 5-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER THOMPSON TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. AUGUST 2,2004 REGULAR MEETING MINUTES 3.2. CHECK REGISTER 3.3. JULY 2004 REVENUE/EXPENDITURE REPORT 3.4. JULY 2004 BALANCE SHEET 3.5. AUGUST 2004 REVENUE/EXPENDITURE REPORT 3.6. AUGUST 2004 BALANCE SHEET MOTION CARRIED 5-0. 4. Open Mike No one appeared for Open Mike. 5. Downtown Revitalization Project Update 5.1. Consider Recommendation to City Council on the Establishment of Downtown Phase One Tax Increment Financing District No.22 (A Redevelopment District) Director of Economic Development Catherine Mehelich stated that in June and July 2004, • the HRA and City Council authorized staff and fiscal consultants to prepare a Tax Increment Financing(TIF)Plan for the establishment of a TIF District for the proposed Housing&Redevelopment Authority Page 2 September 7,2004 Downtown Revitalization Project.Ms.Mehelich noted that the District will be a • Redevelopment Tax Increment Financing District. Sid Inman of Ehlers&Associates presented the TIF Plan.Mr.Inman stated that tax increment collected from the District will enable the city to facilitate the redevelopment of the area,which includes a four-story building with approximately 10,000 square feet of commercial space and 52 for-sale residential units on the Bluff Block.Mr.Inman also stated that a three-story building with approximately 10,000 square-feet of commercial space and 32 rental housing units will be included in the Jackson Block. Mr.Inman indicated that it is in the city attorney's opinion that the parcels of property included in this Plan are not contiguous;therefore,four parcels of land are being added to the TIF District.Mr.Inman stated that with the addition of the four parcels,staff would need to advertise for a rescheduled public hearing and this will require the postponement of the City Council public hearing on the Tax Increment Financing Plan and business subsidy scheduled for September 20,2004.Mr.Inman noted that the public hearing is expected to be pushed back about 30-days but this should not delay the project's construction. Commissioner Motin questioned if the additional four parcels are included in the Plan, would that require the city to develop those properties?Mr.Inman stated that the statute allows the city to be arbitrary and chose which properties included in the Plan that they would like to develop. Commissioner Lieser questioned if the Plan would require modification if Sherburne County requests TIF money to redo the road?Mr.Inman stated no,line items within the Plan can be modified but the budget cannot be made larger without going through a formal modification process. MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER THOMPSON TO POSTPONE THE RESOLUTION RECOMMENDING TO THE CITY COUNCIL FOR A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1,ESTABLISHING DOWNTOWN PHASE 1 TAX INCREMENT FINANCING DISTRICT NO.22 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR UNTIL OCTOBER 4,2004.MOTION CARRIED 5-0. 6. Three Properties for Sale on Main Street Assistant Director of Economic Development Heidi Steinmetz stated that as directed by the HRA at its August 2,2004 meeting,staff researched the details of three properties for sale on Main Street north of Highway 10.Ms.Steinmetz provided the details of these three properties and noted that some of the listing agents may be in attendance to answer questions.She indicated that staff is looking for input and direction from the HRA regarding these three properties. Chair Wilson indicated that he would like more time to think before making a decision on the properties. Commissioner Toth stated that the HRA does not have to make a decision right now as there is no hurry to develop the property. • Housing&Redevelopment Authority Page 3 September 7,2004 Commissioner Motin indicated that it would be premature to take too much action on the • properties as all four homes in that stretch would need to be purchased before any redevelopment could take place and only three are for sale at this time. Commissioner Lieser questioned if the city could purchase the three properties and rent them until the fourth property is available. Marilyn VanPatten,listing agent representing 414 Main Street property,stated that she has spoken with Northwoods Builders,who owns the property adjacent to the four properties being discussed,and they may be interested in partnering with the city to purchase all four lots and to develop them. Director of Economic Development Catherine Mehelich indicated that the land cost could be reduced through the city's Tax Rebate Financing.Ms.Mehelich suggested that Ms. VanPatten work with Northwoods to prepare a development proposal and present it to staff and then to the HRA. Chair Wilson questioned if the HRA would need to be involved in development discussions. Ms.Mehelich stated that neither the HRA nor City Council would need to be involved unless the developer requested assistance from the city. She noted that any developer is welcomed to discuss the development of this area with staff. Commissioner Motin stated that this area would be best suited as an office/commercial space. 4111 Commissioner Motin rovided information on the Greater Minnesota Housing Fund's P g Growth Corridor Initiative handout that was included in the HRA packet.He explained the program and stated that it may be something Elk River would be interested in participating in.He stated that a conference is being held on October 20,2004 at Riverwood Conference Center and suggested that staff attend.Ms.Mehelich stated that staff should be available to attend. 7. Adjournment There being no other business,MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER LIESER TO ADJOURN THE MEETING. MOTION CARRIED 5-0. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 5:45 p.m. Jessica Miller Recording Secretary •