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.
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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
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