Loading...
4.1 HR MIN 10-07-2013 DRAFT City of >144- ..., Elk .....„ Meeting of the Elk River Housing River And Redevelopment Authority Held at the Elk River City Hall Monday, October 7, 2013 Members Present: Chair Wilson, Commissioners Chuba, Kuester,Motin and Toth Members Absent: None Staff Present: Director of Economic Development Brian Beeman;Building Maintenance Assistant Butch Pelarski;Finance Director Tim Simon;CODD Deputy Director Jeremy Barnhart;Economic Development Intern Chanda Knoof; and Recording Secretary Debbie Huebner I. 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 5:30 p.m. by Chair Wilson. 2. Consider 10/07/2013 Agenda Moved by Commissioner Toth and seconded by Commissioner Chuba to approve the October 7, 2013 agenda. Motion carried 5-0. 3. Consider Consent Agenda Moved by Commissioner Toth and seconded by Commissioner Kuester to approve the following consent agenda: • 3.1 Minutes • September 3, 2013, Regular • July 8, 2013 Work Session • August 26,2013 Work Session 3.2 Check Register 3.3 Balance Sheet 3.4 Revenue/Expenditure Report Motion carried 5-0. Commissioner Toth asked for clarification on worker's compensation insurance under"other business". 4. Open Forum - No one appeared for Open Forum. 5. Public Hearings—There were no Public Hearings. HRA Minutes Page 2 October 7,2013 6.I Pledge of Allegiance It was the consensus of the HRA to add reciting the Pledge of Allegiance to the start of the HRA meetings beginning next month. 6.2 Black Hawk Woods Housing TIF Brian Beeman reviewed the request by Senior 30 Elk River Limited Partnership and Roger Derrick for a Tax increment Financing (TIF) project. The project consists of an 84-unit one-level rental project for age 55 and older with low and moderate incomes. The project includes 49 one-bedroom and 35 two-bedroom apartments and a clubhouse activity center. Mr. Beeman introduced Mikaela Huot of Springsted Inca Ms. Huot provided a PowerPoint presentation of Springsted's review of the TIF proposal. Ms. Hout concluded that based on the information provided by the applicant, Springsted could support the city proceeding with consideration of approval of the TIF District, as the project meets the "moderate" criteria of the City of Elk River's TIF Worksheet and Policy. Chair Wilson asked if the "55 and older" restriction would need to be maintained indefinitely. Ms. Huot stated that the age restriction would not be a requirement of the TIF. Commissioner Motin asked if the age restriction could be required in the Developer Agreement. Ms. Huot stated that would be up to the city. Commissioner Motin asked staff if there were any other residential TIF districts created in the past. Tim Simon, Finance Director, stated that the earliest residential TIF was TIF District #10 on 4th& 5th Street,back in 1992. The only other TIF where residential was included was the mixed use for the Bluff Block (commercial office/residential). Commissioner Motin stated that he did not feel this project was a good use of TIF, and he was not in favor of using TIF for residential use, since no jobs are being created. He stated that he questioned the the analysis criteria and scoring. Commissioner Motin expressed his concern for the city receiving no taxes on this property for 23 years. Ms. Huot stated that the applicants did provide a 15-year scenario,but that would leave a$15,000 gap upfront. She stated that by possibly cutting costs (i.e.,reducing developer fees, etc.) there could be flexibility for a 15-year TIF project. Chair Wilson asked if the HRA approved the resolution recommending the City Council call a public hearing on the matter,would there still be time to request a revision of the application. Ms. Huot stated yes. Commissioner Toth asked if the HRA could voice their opinion at the public hearing. Ms. Huot stated that the City Council will take public comment at the public hearing. Discussion followed regarding the current property tax ($6,000/year) and the fact that the city would not receive taxes on the property for 23 years. INATUREI HRA Minutes Page 3 October 7,2013 Commissioner Toth asked if the park shown in the map was part of the project. Ms. Huot stated the park was outside the project site. Commissioner Toth asked if the streets would be public or private. Mr. Barnhart stated that the streets would be public with private drives within the project. Commissioner Kuester asked if the project would be the same if the term were reduced to 15 years. Ms. Huot stated she would have to discuss the option of a 15- year project with the developer. She stated that if the term is the issue, she would explore the option to see if the same proposed 84 units would be a viable project. She did not know if amenities would need to be cut. Commissioner Toth asked if it would be a problem if the HRA approved the resolution and sent it on to the City Council,when they had concerns with the project as it was proposed. Commissioner Motin stated that he felt the HRA could still recommend a public hearing but also let the City Council know their concerns. Commissioner Kuester stated she felt there is a need for this type of housing,but felt maybe 84 units was rather large-scale. She stated that as a non-elected official, she would be more comfortable moving it on to the City Council. Commissioner Motin stated that the question for the HRA is whether or not to recommend the City Council hold a public hearing. Commissioner Kuester stated that she felt they should. Commissioner Toth stated that he was reluctant to send it on to the City Council. Commissioner Motin stated that he would be comfortable passing the issue along to the City Council,as long as they were made aware that the HRA has a lot of concerns. Chair Wilson stated that the HRA has concerns with the term,but does feel the project fits within the scope of the HRA for an increasing need in the community. He stated that he understands there would be very little job creation and felt that could be outweighed by the identified need for this type of housing. He concluded that the HRA has concerns that the city should not pledge too much of the city's future revenue potential. However, since there are currently very few TIF projects active ore being requested, Chair Wilson stated that he was in favor of moving ahead with the resolution. Motion by Commissioner Kuester to approve Resolution 13-03, including all of the concerns expressed by the HRA. Commissioner Motin asked if Commissioner Kuester's motion was to move the TIF request along to the City Council without a specific recommendation. Commissioner Kuester amended the motion to include that the HRA finds the project would meet an identified need for senior housing. Commissioner Toth seconded the motion. PI ■ ERE ® ET MATURE HRA Minutes Page 4 October 7,2013 Commissioner Toth stated that it may meet a need,but the question is whether or not the project meets the overall criteria of the City's TIF requirements. Recording Secretary Debbie Huebner asked if Commissioner Kuester was moving approval of the resolution. Commissioner Kuester stated yes, that she was moving approval to pass it along to the Council for consideration. Motion carried 5-0. Commissioner Motin stated that he voted in favor of the motion, as long as the motion was to move it along to the city council and not recommend a public hearing. Commissioner Kuester stated she assumed it was a "given" that there will be a public hearing. Commissioner Motin stated that he did not understand the motion as calling a public hearing. 6.3 Light Standards — Downtown Butch Pelarski discussed the condition of the electrical outlets and utility box in the downtown and the need for upgrades. Staff and the HRA discussed usage of the electrical by various groups, as well as the downtown business owners' desire for lighting of the trees and music. Discussion also followed regarding ERMU's plan to replace the light poles in 5—8 years. It was the consensus of the HRA that the upgrades cannot wait that long. Chair Wilson and Commissioner Motin left at this time to attend a closed session meeting of the City Council (approximately 6:12 p.m.). Motion by Commissioner Chuba and seconded by Commissioner Kuester to approve the expenditures for the following improvements: 1) installation of new electrical outlets,including downtown parking lot electrical outlets; 2) installation of new utility box; and 3) installation of a third switch for future musical speaker or other amenities,with staff obtaining two quotes for the work, and that the work be completed by the contractor submitting the lowest bid. Motion carried 3-0. It was the consensus of the HRA to continue discussion of the other improvements identified by the various groups,including the Arts Alliance and the Rivers Edge group and next month's HRA meeting (November 4, 20130). 7. Other Business Mr. Beeman briefly discussed the possibility of creating a Business Improvement District (BID) for funding of downtown improvements. Further discussion will follow at a future HRA meeting on this topic. P ® ■ f I E R I t INA1E HRA Minutes Page 5 October 7,2013 8. Adjournment There being no further business, Chair Toth adjourned the meeting at 6: 38 p.m. Minutes prepared by Debbie Huebner. Stewart Wilson,HRA Chair Tina Allard, City Clerk P ® / III . IV MATURE