11-01-2004 HR MIN MEETING OF THE ELK RIVER
1111 HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER I, 2004
Members Present: Chair Wilson, Commissioners Thompson,Toth,Lieser and Motin
Staff Present: Director of Economic Development Catherine Mehelich,Assistant
Director of Economic Development Heidi Steinmetz,Director of Planning
Michele McPherson,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 November 1,2004 HRA Agenda
MOVED BY COMMISSIONER THOMPSON AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE NOVEMBER 1,2004,HRA
AGENDA AS PRESENTED. MOTION CARRIED 5-0.
3. Consider Consent Agenda
• MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
THOMPSON TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
1. OCTOBER 4,2004 HRA MINUTES
2. CHECK REGISTER
MOTION CARRIED 5-0.
4. Open Mike
There was no one present for Open Mike.
5. Downtown Revitalization Project Update
Director of Economic Development Catherine Mehelich provided an update for the HRA
regarding the Downtown Revitalization Project. She provided information regarding the
establishment of the TIF District,land use approvals,and status of the Development
Agreement.
Vern Hanson of MetroPlains reviewed the Project Schedule, starting with land acquisition in
Winter 2004 and Spring 2005, demolition,and construction of the various phases of the
project through completion in 2006. He noted that this timeline will be integrated into the
Developer Agreement.
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November 1,2004
Commissioner Toth asked when the Bluff buildings would be taken down, (with the
• exception of the US Bank). Mr. Hanson noted that demolition will begin when the King
Avenue parking lot project is started.
Chair Wilson asked when construction on the Bluff Block will begin. Mr. Hanson explained
that it is anticipated that construction will begin in October,in order for US Bank to
complete construction of their new building. Commissioner Motin asked if the US Bank
building would be purchased by MetoPlains and then leased back to US Bank until they
move out. Mr. Hanson stated that the details will be included in the Development
Agreement. Commissioner Motin asked if MetroPlains will close on the US Bank building
before starting on the Jackson Block. Mr. Hanson stated yes.
Mr. Hanson stated that they anticipate both projects will be completed in 2006.
Ms. Mehelich explained the City's risk in the project. She stated that if MetroPlains fails to
complete the Bluff Block project, then there would be no TIF revenue to reimburse the City
for eligible costs.
Larry Olson of MetroPlains discussed financing of the project.
Mary Ippel of Briggs &Morgan explained that the developer has already spent a great deal
of time and money on the project and they have not received any TIF yet. She explained
that there will be a mortgage on the Bluff Block. She explained that there will be five
conditions in the Development Agreement that must be completed before the Jackson
Block property will be deeded over to MetroPlains. She concluded that even though the
City will be at some risk, the developer will be at an even greater risk.
Chair Wilson stated that he felt all parties should proceed with the Development
Agreement.. He stated that he felt the projects are being linked together as best as possible
to develop them simultaneously. Commissioner Motin stated that he felt the five provisions
outlined in the November 1,2004 memo from MetroPlains secure the City well.
Ms. Mehelich stated that this issue will be brought back to the HRA within the Development
Agreement at their December 6th meeting for final approval of the construction schedule.
5.1. Small Cities Development Program Grant—Consider HRA as Local Development
Organization
Assistant Director Heidi Steinmetz explained that only MN Department of Employment&
Economic Development(DEED) requires that the City designate the HRA or EDA as the
Local Development Organization for the administration of the Small Cities funds. In order
for the HRA to be designated as the Local Development Organization (LDO) for the
Jackson Block housing portion of the Downtown Revitalization Project,a resolution
approved by the City Council is required. Staff recommends that the HRA consider
requesting that the City Council adopt a resolution requesting DEED to designate the HRA
as the LDO. Ms.Mehelich noted that a similar resolution was adopted for the Sportech
expansion project,in order to transfer the administrative responsibilities to the EDA.
Chair Wilson asked what the dollar amount was for the funds. Ms. Steinmetz stated
$400,000. Commissioner Motin asked if there was any obligation for the HRA if designated
• an LDO. Ms. Steinmetz stated that Short Elliot Hendrickson (SEH) will handle the project
administration as contracted. Commissioner Toth asked if it would be worthwhile to train
Housing&Redevelopment Authority Page 4
November 1,2004
S Ms. Steinmetz asked if the HRA would like to discuss a plan for the area to test the market
and financial feasibility. Chair Wilson stated that they will look at the revised concept next
month for possible land use changes and then discuss next steps.
7. Consider Adoption of 2004-2007 Economic Development Strategic Plan
Ms. Mehelich reviewed the changes made in the 2004-2007 Economic Development
Strategic Plan.
MOTION BY COMMISSIONER THOMPSON AND SECONDED BY
COMMISSIONER MOTIN TO ADOPT THE MODIFIED 2004-2007
ECONOMIC DEVELOPMENT STRATEGIC PLAN. MOTION CARRIED 5-0.
8. Overview of Greater MN Housing Fund(GMHF) Growth Corridor Initiative Conference
Assistant Director Heidi Steinmetz stated that staff obtained more information on the
Greater MN Housing Fund Growth Corridor Initiative program at the conference on
October 20,2004. The four pilot counties include Wright, Sherburne, Isanti and Chisago.
She explained that the four elements of the program include coordinated planning,land use,
housing, and community participation and local participation. A Request for Proposals was
announced in October and two communities within the four-county area will receive
funding and technical support from GMHF for"model"projects similar to the Cambridge
and North Branch projects. Model projects include area-wide master plans;life cycle
housing;efficient land use;increased citizen participation. The pre-application deadline is
• December 15, 2004 and applicants will then be invited to submit a formal application by
February 4, 2004. Staff would like to know if the HRA is interested in submitting an
application.
Commissioner Motin suggested that the area north of Highway 10 that is west of Proctor
and east of Quinn could be considered for a housing redevelopment project.
Commissioner Thompson stated that if the project is intended to bring the City closer to
being part of the Met Council,he is not interested.
Chair Wilson asked if there was any reason not to at least submit the pre-application. Ms.
Mehelich stated that the funds would go toward professional services for a project.
Commissioner Thompson stated that he felt the program would benefit other communities
such as Isanti, since they are not a developed at Elk River,but that he felt it was a little late
for Elk River.
Director of Planning Michele McPherson reviewed information about the program which
she learned at the workshop. She explained the North Branch and Cambridge projects.
Commissioner Motin stated that the City could possibly put together an affordable housing
project which would be eligible for funding.
The Commissioners discussed whether or not a pre-application should be submitted. Ms.
McPherson noted that this first step could possibly lead to an opportunity to qualify for
• other funding.
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November 1,2004
It was the consensus of the Commission to ask the City Council to consider the issue.
• 9. Adjournment
There being no other business,MOVED BY COMMISSIONER THOMPSON AND
SECONDED BY COMMISSIONER TOTH TO ADJOURN THE MEETING.
MOTION CARRIED 5-0.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:23 p.m.
Debbie Huebner
Recording Secretary
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