3.1. HRSR 07-28-2003 • SPECIAL MEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY,JUNE 30, 2003
Members Present: Chair Toth,Commissioners Thompson,Motin and Wilson
Members Absent: Commissioner Lieser
Staff Present: Executive Director Catherine Mehelich and Economic Development
Assistant Heidi Hall
1. Call Meeting To Order
Pursuant to due call and notice thereof,the special meeting of the Elk River Housing and
Redevelopment Authority was called to order at 5:00 p.m. by Chair Toth.
2. Comprehensive Plan Update
Commissioner Motion asked if research was done regarding the waste water treatment plant
capacity. Commissioner Thompson explained that the Comprehensive Plan Update Task
Force had not be asked to conduct research regarding that issue. Director of Economic
Development Catherine Mehelich mentioned that she would forward Commissioner Motin's
question regarding the issue to the Comprehensive Plan Update consultant Rusty Fifield of
• Hoisington Koegler Group,Inc.
3. Downtown Revitalization Project Update
Economic Development Assistant Heidi Hall summarized the results of the Downtown
Revitalization Project Open House, comment forms, and other related communications for
the project. Ms. Hall explained that Open House attendees were asked to fill out the
comment form based on the following five aspects of the Bluff and Jackson Block
development concepts and how those aspects address the City of Elk River's primary goal
and development objectives for the Downtown Revitalization Project. Ms. Hall presented
the following comment form results:
• Use of Commercial and Retail Space-Majority of comments reflected approval
• Design Features-Majority of comments reflected approval
• Relocation of Gazebo/Jackson Square Open Space-Half of the comments reflected
approval and half reflected disapproval
• Waterfront Connection-Majority of comments reflected approval
• Parking-Wide range of comments reflected parking concerns and suggestions
Commissioner Wilson stated that he had been contacted by Keith Holme regarding parking
concerns during construction.
Ms.Mehelich provided the HRA with the next steps in the project,including a staff
recommendation that the HRA consider a motion in support of MetroPlains and the City to
submit a Multifamily and Housing Tax Credit application to the MN Housing Finance
Agency(MHFA). Ms.Mehelich added that receipt of funds from the MHFA would be
contingent upon a final development agreement between the City and MetroPlains. Vern
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June 30,2003
Hanson of MetroPlains Development further explained why the MHFA application is
necessary to make the project financially feasible. Ms.Mehelich stated that while the MHFA
application needs to be submitted,receipt of the funds will be contingent on the HRA and
developer reaching a final development agreement.
The HRA directed staff and MetroPlains to prepare the list of development agreement
issues. Ms. Mehelich requested that the HRA identify any issues that need to be addressed
as part of a final development agreement with MetroPlains. Commissioner Motion asked
that the following issues be addressed in the final development agreement:
• Clarification of proposed parking&transitional parking
• Description of proposed walking path,etc. along river
• Confirmation of project timeline&penalty for non-performace
• Description of visual access to river from lower level on Bluff Block design
Chair Toth inquired about whether or not the building of a parking ramp behind the Brick
Block has been researched. Ms. Mehelich explained that a smaller surface level ramp was
researched for the rear Brick Block concept but not the Jackson and Bluff Block concepts.
Ms. Mehelich provided the following summary of parking options during project
construction:
• Dares Funeral Home parking lot
• Remove Elk River Municipal Utilities building&close off King Ave.
• City green space east of Sunshine Depot
• • Contractor parking in city lots north of Hwy 10
COMMISSIONER MOTIN MOVED TO SUPPORT METROPLAINS AND THE
CITY IN SUBMITTING A MULTIFAMILY AND HOUSING TAX CREDIT
APPLICATION TO THE MINNESOTA HOUSING FINANCE AGENCY AND
THAT THE HRA RECOMMEND THAT THE CITY COUNCIL ALSO
SUPPORT THE APPLICATION AND FAVORABLE CONSIDERATION TO A
LETTER OF INTENT TO TRANSFER THE CITY-OWNED JACKSON BLOCK
PROPERTY. COMMISSIONER WILSON SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
COMMISSIONER MOTIN MOVED TO DIRECT STAFF TO PREPARE A LIST
OF DEVELOPMENT AGREEMENT ISSUES TO BE BROUGHT BACK TO
THE HRA FOR CONSIDERATION. COMMISSIONER THOMPSON
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
4. Review&Comment on Downtown Design Standards
Planner Chris Leeseberg reported that the HRA requested to review the Downtown Design
Guidelines for a second time. The HRA reviewed the first draft in March and provided
several issues of concern.
Several HRA members expressed that the guidelines were too restrictive and asked if
MetroPlains would have a problem complying with the new standards. Commissioner
Thompson mentioned that MetroPlains should have been invited to all Planning
• Commission meetings regarding the design standards. Mr.Leeseberg explained that
MetroPlains had been consulted throughout the process but that developers are typically not
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June 30,2003
• invited to Planning Commission meetings to discuss the establishment of planning
guidelines in order to prevent guidelines from being catered to a developer or project.
Commissioner Thompson suggested that the boundary of the district include the buildings
directly west of Lowell Ave.
Vern Hanson of MetroPlains was asked to comment on the design standards. Mr.Hanson
mentioned that his main concern is who will review and approve the final design.
Commissioner Wilson expressed concern that the design standards would cause new
downtown development to be too homogeneous in design and that a variety of building
designs is important to downtown. Mr.Leeseberg agreed with Commissioner Wilson yet
explained that the main purpose of design standards is to create variety with vertical
separations,rather than to create a development to look like a single developer completed
the project. Commissioner Wilson inquired how existing businesses would be required to
conform when making an expansion using existing materials that would not conform to the
proposed standards.
Mr.Leeseberg asked the HRA what could be done to make the standards less restrictive.
Commission Motin provided Mr.Leeseberg with several grammatical/composition
suggestions regarding the standards.
5. Housing Work Plan Session III: St. Cloud HRA
Ms.Hall introduced St. Cloud HRA Deputy Director Bruce Thielman and St. Cloud HRA
• Housing Development Manager Wendy Hulsebus. Mr.Thielman provided an overview of
the St. Cloud HRA and Ms.Hulsebus gave a presentation explaining the St. Cloud HRA's
housing programs and also provided the following opportunities/challenges to developing a
housing program:
• Cities must identify their housing needs through a market study
• Some cities have to deal with high land costs,a lack of developers,and NIMBYism
(not in my backyard)
• Developing partnerships and being an educator to partners is important(non-
profits,experienced developers,power companies,local employers,banks, etc.)
• Staff expertise in construction& financing is important
• A large amount of staff time must be dedicated to coordinate the program and write
applications for projects
• Cities must acquire different streams of income to fund the program,such as
developer fees
• Each city must find its own niche to fill a need not being met by the private sector
Mr.Thielman mentioned that he and Ms. Hulsebus would be willing to provide additional
insight to the HRA if the HRA decides to development a housing program.
6. Adjournment
There being no other business, COMMISSIONER THOMPSON MOVED TO
ADJOURN THE MEETING. COMMISSIONER WILSON SECONDED THE
MOTION. THE MOTION CARRIED 4-0.
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June 30,2003
• The meeting of the Elk River Housing and Redevelopment Authority adjourned at 7:00 p.m.
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Heidi Hall
Economic Development Assistant
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