4.1. DRAFT MINUTES 01-05-2015 City of
Elk Meeting of the Elk River
River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, November 3, 2014
Members Present: Chair Wilson, Commissioners Chuba,Motin and Toth
Commissioner Kuester arrived at 5:33 p.m.
Members Absent: None
Staff Present: Community Operations and Development Deputy Director Jeremy
Barnhart; Economic Development Specialist Colleen Eddy and Sr.
Administrative Assistant Debbie Huebner
I. Call Meeting to Order
Pursuant to due call and notice theree,'tbe ee ting NtheElk r H ousing 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.
3. Consider 11/0312014 Agenda `,
Moved by Commissioner Motin an' 'seconded by Commissioner Toth to
approve the November 3, 2014 agenda. Motion carried 4-0.
4. '.,Consent Agenda � N14%V
Moved by Commissioner Toth and seconded by Commissioner Chuba to
approve the following consent agenda:
4.1 Minutes
■ October 6, 2014
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Report
4.5 HRA October Report
Motion carried 4-0.
S. Open Forum
No one appeared for Open Forum.
Housing and Redevelopment Minutes Page 2
October 6,2014
6. Public Hearings - None
7.1 Small Cities Development Program Preliminary Application
Authorization
(Commissioner Kuester arrived at this time—6:33 p.m.)
Jeremy Barnhart stated that last year the city completed a pre-application for a
$575,000 Small Cities Development Program (SCDP) grant, to facilitate forgivable
loans for rehabilitation of owner-occupied homes in the older part of the
community. The grant was to be administered by Central Minnesota Housing
Partnership (CMHP) and the HRA's contribution was to be $50,000. Staff seeks
authorization to reapply in 2015. Staff also recommends reducing the size of the
study area by about one-half, adding 5 commercial projects on the north side of
Highway 10 and 5 projects on the south side of Highway 10, and increasing the HRA
contribution to $100,000. He noted that$50,000 was budgeted for this grant and the
additional$50,000 could come from the HRA's cash reserves. If authorized, CMHP
will begin the grant writing process to meet the November 13, 2014 deadline at a
cost of$600 for preparation and submission of the preliminary proposal.
Commissioner Toth asked what the size of the study area was previously. Mr.
Barnhart stated he did not have the acreage. Commissioner Motin asked clarification
of the boundaries. Mr. Barnhart referenced the map attached to the staff report to
the HRA which outlined the previous area and the proposed area. Mr. Barnhart
reviewed the details of the grant program,also detailed in the staff report.
Commissioner Motin stated he had a concern with providing grants to commercial
properties that may be impacted by the realignment of Jackson due to Highway 10
changes. Mr. Barnhart stated that was a valid point and those properties can be
removed. Commissioner Motin asked if the city set the criteria for the grants for the
commercial properties, such as job creation. Mr. Barnhart stated no,that the criteria
includes health, safety and bringing properties up to code.
Commissioner Toth stated that there were some areas along Norfolk which were
previously included, but now are not. He felt the Evans Meadows apartments and
Catholic Church properties should not be included. Mr. Barnhart explained that the
boundary was drawn logically,not meandering to avoid a particular property.
Discussion followed regarding details of grant program (owner occupied vs.
commercial, maximum amount, owner contributions,percentage of funds, and
forgivable and repayment terms).
Further discussion focused on the percentage of owner occupied residential and
commercial properties to be eligible for the grant. Chair Wilson stated he would not
want to see over 50 percent of the funds going to commercial. Commissioner Toth
concurred. Mr. Barnhart suggested a 60-40 percent of residential to commercial.
Commissioner Motin agreed and suggested a "drop dead" date for applications. Mr.
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Housing and Redevelopment Minutes Page 3
October 6,2014
Barnhart suggested putting a time limit on when opening areas for applications,in
order to restrict where projects are awarded.
Commissioner Motin asked if any of the projects budgeted for the existing
rehabilitation program will go into 2015. Mr. Barnhart stated that they will not know
until early 2015, but if the funds are not spent they will go into the 2015 cash
reserves.
Motion by Commissioner Motin and seconded by Commissioner Kuester to
authorize the following:
1. Authorize CMHP to make a pre-application for the SCDP grant in the
amount of$635,000 at a cost of$600 for preparation and submission of
the preliminary proposal.
2. HRA to pledge $100,000 to the program,with$50,000 from the HRA
budget and$50,000 from HRA cash reserves.
Motion carried 5-0.
8.1 Announcements
There were no announcements.
9. Adjournment
There being no further business, Chair Wilson adjourned the meeting of the Elk
River Housing and Redevelopment Authority at 5:55 p.m.
Tina Allard, City Clerk
Stewart Wilson, Chair
Housing&Redevelopment Authority
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