4.1. DRAFT MINUTES (2 SETS) 12-02-2013Members Present.
Members Absent:
None
Staff Present. Economic Development Director Brian Beeman, Community
Operations and Development Deputy Director Jeremy Barnhart,
Community Operations and Development Director Suzanne Fischer,
and City Clerk Tina Allard
Meeting , Order
Pursuant to due call and notice thereof, the meeting of the Elk River Housing and
Redevelopment Authoritywas called to order at 5:30 p.m. by Chair Wilson.
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The Pledge of Allegiance was recited.
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Moved by Commissioner Chuba and seconded by Commissioner Kuester to
approve the November 4, 2013 agenda. Motion carried 5 -0.
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Moved by Councilmember Motin and seconded by Councilmember Chuba to
approve the following consent agenda:
4.1 October 7, 2013 regular minutes.
4.2 Check register as outlined in the staff report.
4.3 Balance sheet as outlined in the staff report.
4.4 Revenue /Expenditure report as outlined in the staff report.
Motion carried 5 -0.
RIMEN21
No one appeared for Open Forum.
There were no public hearings.
Housing and Redevelopment Minutes Page 2
November 4, 2013
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Mr. Beeman presented the staff report.
Fred McCoy, Downtown Business Owner and Chairman of the Rivers Edge
Association- stated the project Rivers Edge is most interested in is decorating the
downtown. He stated their goal would be to decorate all the trees, the street light
poles, and adding more lights to the Christmas tree and Rivers Edge Park. He stated
the Association would like to have lights working year -round for the trees and lights
along the streets.
Chair Wilson questioned who would be installing the lights.
Mr. McCoy stated the Association would do it this year but would like the city to
handle it in the future.
Commissioner Motin questioned if lighting was quoted at a bulk discount rate.
Mr. McCoy stated no but if this item were approved, they would look into it.
Chair Wilson questioned who would be responsible for the electricity costs.
Mr. Beeman stated Elk River Municipal Utilities is currently writing the expense off,
but if lighting were to be maintained year - round, there would need to be a discussion
on who is responsible for payment.
Staff was directed to work with the Association on getting a better price for the
lights.
Moved by Commissioner Kuester and seconded by Commissioner Chuba to
approve $2,600 for Christmas lights.
Commissioner Motin requested to amend the motion to cover sales tax and
suggested bumping the amount to $2,800.
The maker and seconder of the motion were amendable to change the
amount to $2,800.
Motion carried 5 -0.
Commissioner Chuba asked Mr. McCoy what the Association's thoughts are on
implementing a Business Improvement District.
Housing and Redevelopment Minutes Page 3
November 4, 2013
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Mr. McCoy suggested staff come to a future meeting to discuss the district. He stated
he can't speak for the Association and they would need more information on what
the amount of tax would be and what it would be used for.
ME
There being no further business, Chair Wilson adjourned the meeting of the Elk
River Housing and Redevelopment Authority at 5:40 p.m.
Stewart Wilson, Chair
Housing & Redevelopment Authority
Tina Allard, City Clerk
Me
Members Present: Mayor Dietz, Councilmembers Westgaard, Wilson, Burandt, and
Motin
HRA Commissioners Chuba, Kuester, and Toth
Members Absent: None
Staff Present: City Administrator Calvin Portner, Community Operations and
Development Deputy Director Manager Jeremy Barnhart, Director
of Economic Development Brian Beeman, Finance Director Tim
Simon, Community Operations and Development Director Suzanne
Fischer, and City Clerk Tina Allard
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 5:50 p.m. by Mayor Dietz,
The Pledge of Allegiance was recited.
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Mr. Beeman presented the staff report. He introduced Springsted Consultant
Mikaela Hout,
Ms. Hout discussed the following:
® Role of an HRA/EDA.
® Mission/ objectives for tax increment financing.
® Importance of establishing criteria /policies based on what the market will
support.
® Public purpose benefits.
® City's policy for use of Tax Increment Financing
® City's project qualifications.
® What drives the need for public financing assistance.
® What role the community wants to play to encourage development.
® Development efforts a city makes may affect the city's financial reputation.
Ms. Hout reviewed a survey that was sent our earlier to Council and Housing and
Redevelopment Authority members.
Joint Special City Council & ERA Minutes Page 2
November 4, 2013
Councilmember Wilson questioned the minimum numbers and when they were
established.
Ms. Hout noted the policy was amended in May 2006 but adopted in 1991 and stated
staff could check on how reasonable the numbers are for current tax increment
financing projects.
Mayor Dietz questioned Council and HRA on whether and how TIF should be used
for housing.
Ms. Hout stated they should consider if it is their objective that TIF be used for
housing. If so, then the policy should have some language to allow the city to explore
options. If no, then this change should be made clear in policy. She further stated the
city could limit the types of housing they would like to consider, such as making it
available only for senior housing.
Commissioner Toth questioned the criteria for the scoring sheet and had concerns
with it being too flexible and setting precedence when allowing exceptions.
Ms. Hout stated the policy acts as general guidelines for the city and would be
flexible and dependent upon community need.
Mayor Dietz suggested the policy be flexible enough so each project can stand on its
own.
Councilmember Westgaard stated he is not opposed to keeping housing as a
consideration in TIF districts but he is not sure if the city should narrow down to
development versus a redevelopment scenario. He'd like to allow for TIF for
housing but put it as a lower priority over other types of applications. He'd like to
stay more on the conservative side from the risk component.
Commissioner Kuester stated the commission hasn't covered much with housing
and believes the current project is an opportunity to go to market when there is a
need in the community for senior housing. She stated the Mayfield Study backs up
the need for senior housing.
Commissioner Toth commented he likes the set up the city has with the MN Central
Housing Partnership. He agreed on the need for some housing work done in the
city. He stated TIF maybe an avenue worth exploring but it needs to be done
carefully with a new evaluation criteria and looking to the long -term benefits for the
community.
Commissioner Chuba stated he feels it is important for the city to have life cycle
housing with a range of affordable housing for the young and elderly. He stated the
TIF financing should be flexible, but issues need to be worked out, such as how
much TIF to allow, how long it should be good for, and how much increase in value
is expected.
Joint Special City Council & HRA Minutes
November 4, 2013
Page 3
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Councilmember Motin stated he would not like to see TIF for housing purposes but
if the city votes to have it, then the developer would need to meet some other need
such as being in an area that also needs redevelopment or close to where it will help
a commercial area. He stated the Maxfield Study was done from the viewpoint of, if
you build it, they will come, rather than based on a community need. He also noted
there are other funding options available for developers.
Councilmember Burandt concurred with Commissioner Chuba regarding life cycle
housing and felt the need for having different types of availability for all income
levels. She felt there is a need to be flexible with the TIF policy and that TIF for
housing should be included. She stated there will be more seniors in the near future
and the city needs to plan for them coming back to their community.
Councilmember Wilson stated housing has not been addressed over the years by the
HRA. He stated he would like to address the city policy and limit TIF to senior
housing. He stated there is a gap between what Guardian Angels offers, which is low
income housing, versus affordable housing.
Roger Derrick stated people are already here and they need help now.
Commissioner Toth stated he has no issue with using TIF but the city needs well
maintained criteria.
Ms. Hout stated they would look at the changes that are needed to the existing policy
and prepare a new scoring worksheet based on the discussion tonight.
OEM I
There being no further business, Mayor Dietz adjourned the meeting at 6:55 p.m.
John J. Dietz, Mayor
Tina Allard, City Clerk