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3. HRSR 07-07-2014 ty`-: Elk -- Request for Action �= liver To Item Number Housing and Redevelopment Authority 3.0 Agenda Section Meeting Date Prepared by N/A _July 7, 2014 Brian Beeman, Director of Economic Development Item Description Reviewed by Discuss 2015 HRA Budget& Budget Goals for Jeremy Barnhart, Deputy Director, CODD adoption at the August 4, 2014 Regular HRA meeting. Reviewed by Action Requested Information presented for discussion only. Action is to be taken at the August 4, 2014 HRA meeting. Background/Discussion As part of the budget process, a budget workshop is advisable to allow for informal discussions regarding the goals and objectives, major projects, and other items influencing the HRA budget. To this end, staff has prepared a draft budget that attempts to address several of the goals outlined in the strategic plan, downtown plan, the City's vision worksheet, and recent HRA discussion. In order to meet the requirements of the HRA Bylaws, the HRA must approve the budget at their August 4, 2014 regular meeting and make recommendation to the City Council at the September 2, 2014 regular meeting. The City Council is moving toward a biennial budget, so fiscal years 2015 and 2016 are shown on the worksheet. The HRA will review the 2016 budget at this time, next year. As drafted, the proposed expenditures are $319,450. A recent law change now has the HRA levy rate being applied against Estimate Market Value versus Taxable Marker Value. The HRA levy options are as follows: 1) Previous rate (.01440'o) = tax revenue of$274,612 (this would be if the HR.\ chose to draw down reserves for the 2015 budget) 2) Balanced rate (.01651°o) = tax revenue of$314,05() (this would be if the HRA did not want to add or draw against reserves for the 2015 budget) 3) Maximum rate (.01850"0) = tax revenue of$352,780 (this would be if the HRA desires to add additional revenues into the HRA reserves for 2015) P O W E R E D B Y Tcmplate 1=pdatud 4/14 NAIURE All levy options are applied against the Estimate Market Value obtained from Sherburne County of $1,907,026,900. In addition to the tax levy we also calculate interest income of 54,500. f Lecutive Director, Brian Beeman to review the HRA Budget Goals and preliminary 2015 Budget. Financial Impact None. Attachments • HRA 2015 Budget Goals • 2013-2016 EI7A/HRA Strategic Plan • HRA Budget Worksheet D,partmcnts\Community Dcvch_;pmcnr\I:cunorruc Dcvclopm nr\]IR-1'\-ldminisre-ar 1 c 1]a'`l,:ar2((14`,,7-7-2(E14 Bud z t Workshop HID 3() r 11:_1 1iudflct Discussi,m d,,cxl)ncumsnr2 Division Performance Measures & Goals for 2015 Division: Economic Development\HRA Completed by: Brian Beeman Date: May 12, 2014 Performance Measure 2013 Actual 2014 Estimated 2015 Projected Rehabilitate at least 12 properties 0 0 12 Promote the Elk River HRA 0 Send direct mailings to Target Area Send direct mailing to Target Area Rehabilitation Program 500 estimated 500 estimated Promote Small Cities Development Send direct mailing to Target Area Grant 500 estimated Related Vision Statement Division Goal Goal/Objective Comments Promote Small Cities Development Mississippi Connections Priority Projects Central Minnesota Housing Partnership(CMHP)will apply to State SCDP Program (SCDP)Grant program grant for Target Area income based housing rehabilitation funding. Promote new Elk River HRA Send direct mailing to Target Area to promote the program Work with Rehabilitation Program Mississippi Connections Priority Projects CMHP to send Press Releases about success stories. Update 2012 Market Housing Study FAST Study Update 2012 Housing study.As the market continues to evolve,the need to understand gaps in the system is highlighted. Research First-Time homebuyers Mississippi Connections Priority Projects, Based on phone calls from the public program Economic Development Strategic Plan Work to expand Senior Housing Housing Market Study,Housing Based on phone calls from the public options Diversification Downtown Redevelopment Plan Mississippi Connections Priority Projects Next step is to research redeveloping downtown north of Hwy 10. BUSINESS DEVELOPMENT Attract new businesses and support existing businesses to increase the city's industrial tax base, commercial tax base and employment base. INDUSTRIAL STRATEGIES Promote available sites, encourage business retention and expansion to grow existing light industrial base with business recruitment/attraction techniques • Diversify economic base to include professional services, corporate campuses, energy- related companies, and technology businesses • Review existing programs, resources, and services and recommend improvements to increase competitive advantage and support goals • Explore creative economic development collaborations Utilize Energy City and its tools to recruit new and assist existing businesses COMMERCIAL STRATEGIES Promote available sites, encourage business retention and expansion to grow existing commercial base with business recruitment/attraction techniques Diversify economic base to include a wide variety of retail and service industries, as well as additional fine dining opportunities • Review existing programs, resources, and services and recommend improvements to increase competitive advantage and support goals Explore creative economic development collaborations Enhance commercial district through business recruitment and activities ACTION STEPS • Complete minimum of one BRE visit a month (manufacturers and top employers) and distribute Business Finance Toolkit, Available Sites, Community Profile, Energy City Brochure, Business Recycling Toolkit and other pertinent information. • Promote available sites through exhibits at various expos (minimum 2x/yr.) • Utilize 171st FAST implementation plan to create a marketing piece for Nature's Edge Business Center and an annual redevelopment action plan to monitor progress of implementation • Partner with ERMU to identify applicable rebates for available city-owned property • Promote applicable incentives through direct mailings (minimum 3x/yr.) • Promote Elk River to the restaurant industry through website (www.elkrivermn.gov/restaurants), direct mailings, Constant Contact email blasts and other marketing venues • Partner with Elk River Area Chamber of Commerce to coordinate Chamber goals with economic development goals through various implementation tasks • Utilizing economic development publications make contact with businesses looking to expand, relocate, etc. • Review Micro Loan Program and recommend improvements to increase competitive advantage and support goals • Partner with ECC and ERMU to explore a joint incentive to attract energy-related technology businesses • Partner with local schools and manufacturers to hold quarterly meetings to encourage students to explore a career in manufacturing through plant tours, youth apprenticeship programs, energy city tours and programs, and job shadowing • Launch a powerful website for the Elk River Economic Development Department • Demonstrate support for existing manufacturers and raise awareness regarding their impact on the community through various promotional activities and tours during Minnesota Manufacturers Week • Identify target industries (e.g. data centers, energy-related companies, fine dining establishments, etc.) and create specific marketing pieces to identify advantages and programs to assist in business recruitment • Host quarterly Manufacturers' Connection events with local manufacturers to promote financial incentives, resources and relevant topics to promote business retention and appreciation • Build a targeted industry and trade media databases and send press releases 6x per year. • Produce an energy conservation best-practices brochure to provide to businesses • Coordinate with Energy City to plan and market energy city events e.g. Energy City Business of the Year • Partner with Energy City and the Streets Department to promote proper disposal of Fats, Oils and Grease through videos, flyers, emails, social media, and other media REHABILITATION AND REDEVELOPMENT Undertake strategies that facilitate rehabilitation and redevelopment of aging commercial, industrial and residential areas to ensure private reinvestment and sustainability. COMMERICAL/INDUSTRIAL STRATEGIES Maintain a listing of available commercial/industrial sites Promote available sites through various marketing initiatives • Identify and examine potential areas for revitalization • Review existing programs, resources, and services and recommend improvements to increase our competitive advantage and support goals • Enhance downtown commercial district through business recruitment and people- generating activities ACTION STEPS • Update windshield survey quarterly and post on website • Feature available property in quarterly 'Energized by Development' electronic newsletter • Promote www.elkriversites.com on billboard 1x/yr. (changed quarterly) • Partner with downtown business association and civic groups to promote existing and explore new downtown activities • Partner with Elk River Area Arts Alliance to explore funding concepts for an arts center within the downtown study area • Create and distribute a survey to businesses to identify recommended improvements to existing programs, resources and services, in addition to identifying preferred methods of communication to improve Elk River business climate • Identify current property owners' and businesses' interest in redevelopment efforts both north and south of HWY 10 and in 171st Focused Area Study area • Create a redevelopment policy regarding capitalizing the HRA development fund and identify parameters for purchasing parcels • Create and distribute comprehensive business directory to promote downtown Elk River • Partner with the Elk River Area Chamber of Commerce to hold annual event to promote economic development resources and incentives (Juice Up Your Morning, Chamber luncheon, Money Breakfast, etc.) • Create a short video promoting available sites and applicable initiatives to distribute through social media outlets, constant contact and website RESIDENTIAL STRATEGIES Maintain listing of vacant/foreclosed properties Address housing gaps with Comprehensive Housing Market Study recommendations :- Proactively review neighborhoods annually to ensure all home are properly maintained through the code enforcement process • Seek and promote available programs to improve existing housing stock and incentivize homeownership • Provide educational opportunities regarding foreclosure prevention and housing assistance programs ACTION STEPS • Continue to work with applicable departments and entities to maintain internal foreclosure tracking spreadsheet • Distribute MN Home Ownership Center foreclosure prevention, Energy City conservation brochure, and Elk River Housing Toolkit information to local lenders, realtors, churches, non- profits, builders, etc. (minimum 4x/yr.) • Partner with staff to devise a neighborhood inspection plan to ensure all homes are properly maintained through the code enforcement process • Utilize housing intern to research programs available to Elk River residents to improve existing housing stock and incentivize homeownership • Partner with North Metro Realtors Association to explore the creation of in house housing programs (down payment assistance, housing rehab, etc.) • Partner with applicable non-profits (MNHOC,Tri-CAP, etc.) to hold educational events to promote foreclosure prevention and housing programs (minimum 2x/yr.) • Identify a partner housing organization to fund and support a selective housing removal and rebuilding program • Host an annual Realtors' Day to educate realtors about the programs, processes and amenities offered by the city COMMUNITY BRAND Utilize community brand strategies to effect necessary changes to strengthen and enhance community image STRATEGIES r Continue to implement and enhance marketing plan that reflects the Powered by Nature brand, identifies desired target market(s), and complements other local efforts to promote the community internally and externally Maintain existing and build new community support for the Powered by Nature brand Establish benchmarks for performance measurement ACTION STEPS • Work with area businesses and civic organizations to incorporate brand into their marketing strategies through presentations (minimum 6x/yr.) • Create PbN logos for area businesses and civic organizations (minimum 6x/yr.) • Meet with each city department to ensure all documents (staff reports, applications, business cards, presentations, letterhead, etc.) adhere to brand guidelines as outlined on SharePoint • Maintain poweredbynature.blog.com site (minimum 3x/wk.) • Distribute window clings and larger windows signs of the logo • Distribute brochures explaining the brand to residents to municipal liquor stores, Guardian Angels, Pullman Place, Sherburne County, local banks, Chamber of Commerce, local hotels, etc, • Utilize community brand throughout the new Economic Development and citywide website • Promote the brand, engage residents, and distribute materials at expos (3x per year) and at events such as Realtors' Day, Leadership Elk River, and Manufacturers Connection • Create profiles on first-tier business owners in Synchronist—a tracking software used to record information on local businesses and visits • Launch an online marketing campaign through pay-per-click and keyword advertising • Benchmark the impact of the Powered by Nature brand with data from Google Analytics and a search engine optimization analysis. TRANSPORTATION Advocate and support proactive planning for improvements to the local and area transportation system in a way that will support existing businesses and complement new economic growth. STRATEGIES r Advocate regional and local transportation improvements r Encourage transportation improvements as part of redevelopment/development opportunities r Support efforts to leverage local funds with state/federal resources ACTION STEPS (submitted by City Engineer) • Increase contact with legislators for state highway transportation improvements • Complete low cost/high benefit enhancements to improve traffic flow through the existing street intersections • Advocate for the continued use and expansion of Northstar commuter rail service. • Continue implementation of transportation improvements as detailed in the 171st Focused Area Study • Assure all proposed development improvements are consistent with our local and regional transportation plans. • Leverage State and Federal investment for mobility improvements to TH 169 and TH 10 with the already spent local dollars for the planning of improvements to these sections. • Evaluate all available grant opportunities to determine if the local matching amounts are a cost effective and feasible solution to support our objectives and strategies. 2015-2016 BUDGET DETAIL SHEET Dept: Housing&Redevelopment Authority Acct. Explanation/Detail of Supplies or Services 2012 2013 2014 BUDGET 2015 BUDGET 2016 BUDGET No. Actual Actual Detail I Total Detail I Total Detail I Total Comments: PERSONAL SERVICES 4101 Regular Pay 51 230 40,310 56,450 54,050 57,700 4103 Part T.me Pay 8,000 4104 PERA 3 691 2,730 4,100 4 050 4,300 4105 FICA 2,908 2,318 3,500 3 350 3,600 4107 Medicare 690 542 800 800 800 4108 Insurance 7,163 6,047 9,200 6 950 7,300 4109 Workers Comp 316 256 400 300 300 TOTAL PERSONAL SERVICES 65,998 52,203 82,450 69,500 74,000 SUPPLIES 4201 Office Supplies (shared with EDA) 4212 Fuels&Lubes 1,400 1,400 1,400 1,400 TOTAL SUPPLIES 1,400 1,400 OTHER SERVICES&CHARGES 4304 Legal Fees 1,584 217 10,000 10,000 10,000 Misc 10,000 10,000 10,000 4319 Other Professional Services 28,059 10,877 20,400 32.450 20,450 Downtown Plan implementation 20,000 20,000 20,000 Directional Signage&River's Edge Protects Small Cities Development Grant 400 400 400 Application Fee Solid Waste fee(downtown parking lot) 50 50 Housing Study 12,000 Update 2012 study starting in 2015 4322 Postage 257 61 7,000 7,000 7 000 7,000 7 000 7,000 4331 Travel,Conferences&Schools 4,250 4,250 To attend Housing workshops&Annual Residential Misc Training 1,500 1 500 Real Estate Conf Housing Conf NDC Training 1,250 1 250 Housing Development Finance Professional(HDFP) NDC Travel 1,500 1 500 Four Courses One per year 4349 Advertising/Marketing 1,149 15,000 12,500 12,500 Housing programs-marketing 10,000 12,500 12 500 Advertising new Rehab Program&existing programs Downtown Marketing-brand plan 5,000 Update downtown brochures event marketing 4359 Publishing 165 45 5,000 5.000 5,000 Housing Program(s)Printing 5,000 5,000 5,000 Update brochures,new Rehab Program 4361 Insurance 1,311 _ 1,500 Insurance open meeting law/Property in the open) 1,500 4389 Utilities 133 600 600 Downtown parking lot&light poles electrical usage Water/electric-ERMU 600 600 per Jennie avg $50/month 4401 Building Repair&Maint 6,431 716&720 Main 4409 Contractual Services 27,672 50,000 150,000 150,000 Grant leverage funds-SCDP 50,000 50 000 50 000 For SCDP through CMHP State Grant Rehab Prograi Elk River HRA Rehab Program 100,000 100 000 To fund internal Housing Rehab Program next 3 year 4437 Taxes&Licenses 300 Current rate is$23 p/month year to Sherburne Solid Waste Fees Downtown Parking-moved to 4::19 300 County Auditor TOTAL OTHER SERVICES&CHARGES 66,761 11,200 109,200 221,800 209,800 CAPITAL OUTLAY 4530 Improvement Project Contract 174,815 TRANSFERS OUT 26,350 26,750 26,750 4720 Transfers 4721 General Fund 15,000 18,200 22,850 23,250 23,250 Jeremy's salary 4735 Economic Development Authority i shared expenses) 3,500 3,500 3,500 3,500 3 500 TOTAL HOUSING&REDEVELOPMENT AUTHORITY 326,074 85,103 218,000 319,450 311,950 7/2/2014