04-07-2014 HRA MIN Elk �--� Meeting of the Elk River
III River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, April 7, 2014
Members Present: Chair Wilson, Commissioners, Kuester, Chuba and Motin
Members Absent: Commissioner Toth
Staff Present: Economic Development Director Brian Beeman, Economic
Development Specialist Colleen Eddy, Community Operations and
Development Deputy Director Jeremy Barnhart,and Sr.
Administrative Assistant 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. Pledge of Allegiance
The Pledge of Allegiance was recited.
III3. Consider 04/07/2014 Agenda
Moved by Commissioner Kuester and seconded by Commissioner Motin to
approve the April 7,2014 agenda. Motion carried 4-0.
4. Consent Agenda
Moved by Councilmember Motin and seconded by Councilmember Kuester
to approve the following consent agenda:
4.1 Minutes
• March 3,2014, Regular Meeting
• March 3, 2014,Workshop Meeting
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Report
Motion carried 4-0.
5. Open Forum
No one appeared for Open Forum.
III 6. Public Hearings
Housing and Redevelopment Minutes Page 2
April 7,2014
There were no public hearings. •
7.1 Property Assessed Clean Energy (PACE)
Brian Beeman presented the staff report. He then introduced Peter Klein,Vice
President of Finance from the St. Paul Port Authority.
Mr. Klein provided information regarding the Property Assessed Clean Energy
(PACE) program and discussed how the program is being utilized in other
communities. He also discussed loan terms,interest rates and how the loans are
repaid. Mr. Klein noted that the city has no financial risk but they would have the
task of collection/enforcement of the special assessments. He stated that currently,
the energy efficiency loans are limited to 10% of the assessed valuation of the
property,but that the legislature may be increasing that to 20%.
Dan Weber, Sherburne County Assessor/Economic Development Specialist, stated
that the County was approached by an individual to participate in the program.
Chair Wilson asked why the legislature was looking to increase the amount from
10% to 20%. Mr. Klein stated that they were finding that 10% of the valuation was
not a very large amount when a company was looking to make significant energy
improvements.
Mr. Klein stated that if a loan was to default, first the taxes would get paid, then the 4111
special assessment for the PACE loan,and then the mortgage on the property.
Mr.Weber stated that the city could participate on their own, or with the county
through the Joint Powers Agreement. Mr. Klein stated that the city could enter into
one joint powers agreement with SPPA on behalf of each city,rather than each
entering into agreements with each individual city.
Commissioner Chuba asked if a solar project were proposed,would the loan be just
for the cells. Mr. Klein stated that the loan could be for the entire project,including
reinforcing the roof, etc. He noted that the PACE program also includes energy
efficiency,which saves companies money and significant energy.
Motion by Commissioner Chuba and seconded by Commissioner Motion to
recommend that the City Council grant authorization to Sherburne County to
enter into a Joint Powers Agreement with the St. Paul Authority (SPPA) for
the issuance of proposed bonds by the Port Authority for the PACE of MN
Project. Motion carried 4-0.
7.2 Rental Rehabilitation Deferred Loan Program
The staff report was presented by Brian Beeman. He stated that CMHP has •
requested a Rental Rehabilitation Deferred Loan Program (RRDL) funding
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Housing and Redevelopment Minutes Page 3
April 7,2014
allocation in the amount of$2.5 million for 2014-2015. He stated that projects of 6
III or more rental units in Sherburne County are eligible to receive a zero percent
deferred loan. Eligible costs include roofing, siding,windows, doors, floor
coverings,boilers and mechanical systems and energy and water saving
improvements. He noted that RRDL funds may also be used for soft costs such as
lead-based paint assessments, architect fees, title fees and administrative fees. The
deadline for applications is April 10, 2014 at 4 p.m.
Seth Kauffman, Central Minnesota Housing Partnership, Inc.,Program Manager—
stated that anyone interested after the deadline should contact Jason Krebsbach,
Community Development Director of CMHP,as the application deadline may be
extended.
8.1 EDA/HRA Intern (Verbal)
Brian Beeman noted that Colleen Eddy, Economic Development Specialist,has been
working for approximately 2 weeks. He noted that the intern position will be filled
next and Ms. Eddy is creating a work plan for the intern position. He reviewed the
hours, salary and proposed job duties.
9. Adjournment
There being no further business, Chair Wilson adjourned the meeting of the Elk
IIIRiver Housing and Redevelopment Authority at 6:52 p.m.
Minutes prepared by Debbie Huebner.e _r,,...
..4 ffirii Stewart Wilson, Chair
Housing&Redevelopment Authority
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Tina Allard, City Clerk
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