4.1 HRSR 06-01-2015 DRAFT MINMeeting of the Elk River
Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, May 4, 2015
Item 4.1
Members Present: Chair Wilson, Commissioners Burandt, Chuba, Kuester, and Toth
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt, Economic
Development Specialist Colleen Eddy, 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.
3. Consider 5/4/2015 Agenda
Moved by Commissioner Toth and seconded by Commissioner Kuester to approve
the May 4, 2015, agenda. Motion carried 5 -0.
4. Consent Agenda
Moved by Commissioner Toth and seconded by Commissioner Kuester to approve
the following consent agenda:
4.1 April 6, 2015 Regular Meeting Minutes
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue /Expenditure Report
4.5 Satisfaction of Mortgage Release Form
4.6 Appointment of Executive Director
Motion carried 5 -0.
S. Open Forum - No one appeared for Open Forum.
6.1 Public Hearings - None
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May 4, 2015
7.1 Housing & Redevelopment Authority (HRA) Housing TIF Policy
Amanda Othoudt presented the staff report.
Motion by Commissioner Chuba and seconded by Commissioner Toth to approve
the amended Housing & Redevelopment Authority Housing TIF Policy and Score
Sheet. Motion carried 5 -0.
7.2 HRA Rehabilitation Loan Program
Colleen Eddy presented the staff report.
Motion by Commissioner Chuba and seconded by Commissioner Kuester to approve
the mortgages and repayment agreements per the Rehabilitation Loan Program
Policies:
1. 606 Jefferson Lane NW - $20,650
2. 928 Main Street NW - $24,900
Motion carried 5 -0.
Ms. Eddy stated that she will ask CMHP to provided addresses on their updates to the HRA.
The HRA adjourned to worksession at 5:40 p.m.
8.1 Worksession - Demolition Loan Program
Ms. Eddy reviewed the Demolition Loan Program policy and application drafted by the city
attorney.
Chair Wilson stated the program offered a lower interest rate and quicker repayment term
for the demolition portion of a rehab project, than a traditional loan.
Commissioner Chuba asked if staff could foresee any issues a property owner might have
with title insurance. Ms. Eddy stated she would ask the city attorney.
Chair Wilson suggested the option of a forgivable loan after 10 years would be incentive for
a property owner to demolish an existing blighted home and build a new one.
Ms. Othoudt stated the HRA can decide if the program will be strictly a low interest loan
program in which the funds are eventually recaptured and can be used then for other
projects; or, a forgivable loan where the funds are just given away.
Commissioner Burandt asked how far $15,000 would go. Ms. Eddy stated that it would
likely not cover all demolition costs.
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May 4, 2015
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Commissioner Kuester asked what their goal was — to get the building demolished and sell
the lots, or do they want them to rebuild, as well.
Commissioner Chuba questioned whether all blighted property owners have the resources to
rebuild. He stated that a contractor could purchase the blighted property, demo the building
and have the option of selling or rebuilding. Ms. Eddy noted that the HRA could buy a
property and complete the demolition, but that would require a new program and
application.
Discussion followed regarding identifying blighted properties, forgivable versus pay -back
loan options, and a time period for a forgivable loan (5 years - 10 years), and who would be
eligible for the loan program (property /homeowners, developers, or both).
Commissioner Kuester asked how it is determined a property is blighted. Ms. Eddy stated
that the city's building inspection department would make that determination.
Commissioner Toth asked who would determine what properties were inspected. Ms. Eddy
stated that the process would be application- driven.
Commissioner Chuba stated he did not care whether the program benefitted homeowners or
developers, but that he was in favor of a forgivable loan program.
Chair Wilson stated that since the focus seems to be shifting more to blighted properties, he
suggested that they "go back to the drawing board" and maybe look at what other
communities are doing, as far as tearing down structures and replacing with new.
Ms. Eddy stated she will research blighted property programs.
Commissioner Kuester asked if staff or the HRA are aware of blighted sites in the city.
Commissioner Kuester asked if they should base findings on safety hazards. Commissioner
Chuba stated that properties can be function and non - functional and be obsolete. He did
not see the purpose is throwing "good money after bad" by rehabbing properties that lived
out their usefulness. He noted that there are a number of properties that are old but not
very many are historical and worth saving.
Chair Wilson stated the question is whether or not there are blighted properties that a
program would benefit. He noted that updating sites with new structures would also
increase the tax base.
Ms. Eddy stated that she will talk with the building, fire and code inspectors and come up
with a list of blighted properties they are aware of.
9. Adjournment
There being no further business, Chair Wilson adjourned the worksession of the Elk River
Housing and Redevelopment Authority at 6:15 p.m.
Housing and Redevelopment Minutes
May 4, 2015
Minutes prepared by Debbie Huebner.
Tina Allard, City Clerk
Stewart Wilson, Chair
Housing & Redevelopment Authority
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