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6.0. HRSR 09-22-2003 ITEM 1 6. • ,^", City of Elk -�-� River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: September 22, 2003 SUBJECT: Downtown Revitalization Project Update Attachments • Downtown Revitalization Project Description,July 2003. • Downtown Project Communications Update memo dated September 22, 2003. • MetroPlains Development Preliminary Time Table. • • Fact Sheet- Small Cities Development Program. Background In the past few months the HRA has been considering staff's research to issues and questions raised by the public with regard to MetroPlains'attached concept for the redevelopment of the Jackson Block and Bluff Block. The attached memo from the Assistant Director of Economic Development summarizes the recent communications outreach. At its July meeting the HRA directed staff to proceed in preparing a Development Agreement with MetroPlains. Staff continues to work closely with the project attorney and the developer to prepare a draft agreement for the HRA's review and consideration at a regular meeting within the next 30 to 60 days. Next Steps The financial feasibility of the project depends on the city and developer's ability to receive financial assistance from a variety of resources. In July the HRA and City Council authorized MetroPlains to submit a financing application to the MN Housing Finance Agency for the Jackson Block project. Notification of financing award from MHFA is anticipated the end of October. In addition to the MHFA application,the financial plan prepared by MetroPlains is dependant upon funds from the Small Cities Development Program (SCDP), administered • by the MN Department of Employment and Economic Development (DEED). These Downtown Revitalization Project Update September 22,2003 HRA Meeting Page 2 of 2 grants will be contingent upon final project approval. Application does not commit the City or HRA to final project approval. It is important to note that a larger portion of the City's SCDP application will include a request for grant funds to be used for commercial and rental property rehabilitation within the downtown area. The grant funds may be provided to property owners as a deferred low interest loan that could be used to leverage the City's existing Micro Loan Redevelopment Financing Program and conventional financing. The rehabilitation of adjacent properties supports the City's revitalization objective to recognize buildings that have potential for rehabilitation. Rehabilitation must include building,fire and energy efficiency code improvements, and can include façade improvements. A portion of the SCDP application will include a request for gap financing of the Jackson Block project. It is important to note that even if these grants are obtained there is still a project funding "gap". The developer, city staff and Ehlers will be working to reduce the size of that gap as well as to identify funding sources over the next few weeks. This issue will be included as part of the final development agreement terms for consideration by the City Council and HRA within the next 30 to 60 days. With the HRA and City Council's direction, staff and the developer will proceed to secure funding from these various sources in order to meet deadlines that will permit the project to proceed next year if approved by the City and HRA. Within the next month the City Council will be asked to consider a series of resolutions that are required as part of the SCDP application. The resolutions are similar to the resolutions approved for the Sportech MN Investment Fund grant application. In addition, staff will be working to meet with property owners to gauge level of interest and estimates for rehabilitation improvements. • ,/r Vtaeliàtth,et'Dlln24°1/1/ ■Ci ty of PROJECT Elk - .-, "� JULY 2003 Rvet* Enhancing Downtown Elk River's Role,. `" As a Vital Retail,Commercial and Residential Area Primary Goal of Downtown Revitalization Project: To assure the long-term viability of downtown by mak �, , ing a connection to the rest of the community and by , i} utilizing the riverfront location. Redevelopment will , _' , enhance downtown.Elk River's role as a residential, retail and commercal area and also revitalize invest � � invest- ment in the downtown business district. t Development Objectives: r "" • Mixed use(residential/retail/service) � f � ' �4114 _ • Consideration of the historic context study results 4 ' • Strengthen connection to the community °� ° ' d 4. « > � aft • '� '4 t Wi: Traditional downtown design elements -t° �. � �°- 71i• Brick, stucco,stone materials with visual breaks in _(f ) "'� the building design iN ,' ` `__?, • Increased residential density �3. 4 � • Pedestrian orientation . , 4,. • Increase exposure to the riverfront . , • Recognize those buildings that have potential ` for rehabilitation ' ` " • Replace market/economic obsolete buildings ♦BLUFF BLOCK DEVELOPMENT • Multiple types of housing products (i.e.townhomes, senior rental coops, :' market rate apartments) • BLUFF BLOCK DEVELOPMENT �� — 10,000 sr e. commercial on first floor along � � Main Street($13/s.f. avg. rent) — 52 units of for-sale housing t °'' v, � — 3 and 4 stories 7 f t ; ■' -.',<1>, ., , — 70-80 below grading parking stalls for housing 1 -� n - & commercial residents i ��. — Connection to City's Riverwalk development ' s • JACKSON BLOCK DEVELOPMENTIS ,= ° •I — 10,000 s.f. commercial on first floor along f r _ � a Jackson Street and at the corner of Jackson ,r `S i 10,11'€ �t )11411131,4• and Main � . _ — 32 units rental housing(16 1-bedroom units at _ - $600 per month &16 2-bedroom units .- , at$700 per month) - - 3 stories lb - Up to 52 below grade parking units for housing residents and commercial and 18 surface units •JACKSON BLOCK DEVELOPMENT • City of Elk -1 River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Heidi Hall, Assistant Director of Economic Development DATE: September 22, 2003 SUBJECT: Downtown Project Communications Update Attachments • Downtown Revitalization: City Receives Feedback, City of Elk River Newsletter The Current,September 2003 • Rivers Edge Downtown Business Association August 13, 2003 Meeting Minutes and • September,2003 Agenda Recent communications on the Downtown Revitalization Project include the following: City of Elk River Newsletter The Current Periodic articles on the Downtown Revitalization Project have appeared in The Current. The Current is distributed in the Elk River Star News every other month. The attached article was distributed in the September 3,2003 issue of the Star News and is available at City Hall. Direct Mail On July 14th, the City Council directed staff to send HRA meeting notices to downtown property owners and tenants. Meeting notices for the July 28,August 25, and September 22, 2003 HRA meetings were sent to a list of approximately 200 people,which included the property owners, tenants,and citizens who have specifically requested project updates. Future meetings notices will be sent to the same group of people. City Web Site Downtown Revitalization Project updates are available on the Downtown Revitalization page of the city Web site. The page is updated as project activities occur. Rivers Edge Downtown Business Association City staff is allowed to provide Rivers Edge with monthly updates on the project as a regular Rivers Edge meeting agenda item. Staff attended the September 10, 2003 Rivers Edge • meeting to provide a status report and answer questions (see attached August 13,2003 Rivers Edge Meeting Minutes and September 10, 2003 Agenda). Future Open House MetroPlains is working to schedule an open house meeting for prospective commercial tenants for sometime in October. The purpose of the meeting will be to provide information about the proposed project and details about lease space,improvements, and rates. • City of Elk River Newsletter �/ Volume 13. No.5 September 2003 City of 0 , Elk , River City Directory 11111.1rhe c. o nt DOWNTOWN REVITALIZATION COMMUNITY 0-464-A�' CITY RECEIVES FEEDBACK EMERGENCY C 4d 4 Rr�� + ;�� RESPONSE � v t' ' frequent concern ,.4.-7,44, expressed by the public TEAM �i'i°_—! was whether there } _ �� 15-20 tir would be sufficient X44, ," 211'4011 ilk:,- - Volunteers Needed I ; �r „y a parking during con- Iie� K ' �` ''-ii—P-' i RS � t' - s " struction and after the ry {'. 3 " 5t° E i - The City of Elk River r * l'!..4-,,,',11 development was com- +� ' e 1' I a P.1444,7;:.:1'.k ett _ received a grant from the .i I-:. ,I � � - -. a , �n �� a _ �� °'� In addition to feed- Minnesota Division of t. � � ` .` i - Homeland Security and back received at the ' Emergency Management Open House, down- � ^ Bluff Block Development for the devel0 ment i. �.,,‘14.44z, town owners and ten- p `u' At a June 18 Open House ants presented their issues equipment purchase, and held at Lions Park Center and concerns regarding the wining of a Community "177..':1-14,4''''' '',-14,4,'-`241,R4i77,A the community provided project at the July 28 Emergency Response Team 'ire:,,,,I*0.14,r;b9"iiiltib--P4,"01 important feedback on the Housing and (CERT). With the events inside and outside the Downtown Revitalization Redevelopment Authority C I ty Council Project. Comments were (HRA) and City Council United States in recent received on a range of top- meetings.At the August 25 years, the President has � called on all Ameri cans to � ics. The majority of com- HRA meeting, city staff !,-,it-.4"..??,,r„.4.„.-1,L,;;;4§-...,,..-t...„4,5--,..ti:m.74,,it-1,';‘,..,:t`til pP p give back to theircommu- menu reflected support for will res and to the issues the use of commercial and raised by the HRA and the nities and become an active F „ � retail space in the concept, public. volunteer. a the design features, and the The city and MetroPlains The city has organized a 7-4',..;777"-,41 waterfront connection. are exploring a variety of CERT development team �' and a member of our com- �, Opinions were split on the alternatives that include 1 , relocation of the Gazebo to better utilization of some munity, Larry Narikawa, the o en space between the has stepped up to the plate p P existing parking, Cinema Building and the to take the helm as the $ Downtown Revitalization '°" -R` Sunshine Depot. The most continued on page 2 CERT continued on page 4 1,44470,Mtil• d M -,.. . Enjoy Using the Library? Help Out by Joining the Library Board! ° The •city •is seeking volun- the Board is to oversee the -Parkway, (763)635-1000, at teers to fill a vacancy on physical library facility and the Elk River Public -), ' E the Library Board. The to promote the best possible Library 413 Proctor Board meets on the fourth use of all library resources. Avenue, (763)441-1641, or - Tuesday of each month at Applications are available visit the city website at . : ;,. , 6:30 p.m. The function of at City Hall, 13065 Orono www.ci.elk-river.mn.us. : .�..x .-..- -. _. _. .r ..—.y...i,.._..... ..........:_-_....�-.:....::_:is r:: New Oak Wilt Programs fir=.5 AMSULANCE.OPEN.>-Hous�' : .NCE Sherburne County the county, ............:_,,..._.........__...-.:�_:..:: he or ,.:::.. :.. ... in some ,... ...: ....... , ::::� �F.�,_,:.,,.r�,;a::::..::»:,�<. Si4'F1'JRDA�€`StEP'TEMBER":.ZQ,2003:. downers interested in cases, through their local earning more about oak township or city. Sherburne Tickets:will be mailed to- ....:.'on.the.evening of the wilt disease and the Oak County has administered a residents and may be pur- dance. If you can't attend Wilt Suppression Programs suppression program since chased• by returning the . the dance but would like available to them are invit- 1991 treating over 1,000 . ticket with your ten .: . to make a donation,you ed to an Open House meet- infection centers. With dollar:r payment.Tickets are • may do so by returning th e ing to be held on newly developed programs also.available at the fire tickets with your contribu. Wednesday, October 1, this year in the City of Elk station;and will be available -:don. 6:30-9:00 p.m. at the River, Baldwin Township, at the gate(for ten dollars) Sherburne County Big Lake Township, and Government Center. Livonia Township, the -4 °eii-F t uie at Fire:Statiion The meeting will first increased grant funds can 415 Jackson Avenue include an outside informal assist more landowners in :,'CEDUCE OF EVENTS. - discussion and demonstra- Sherburne County with tion on the suppression suppression costs,preven- tools available to landown- tion and awareness, and "' ers, including the vibratory community outreach. -EM plow and fungicide injec- In addition, the grants can SAFE ESCAPE HOUSE , tions.At 7:30 p.m., repre- assist communities with RIDES ON ANTIQUE FIRE TRU+ sentatives from the DNR developing management _.- OQ•ot. DEVERAGES . , , and Sherburne County will plans specific to their area. ;ALLO.0NS & MOONWALK FO . be on hand to review the The funds originate from a ` .3 .. status of oak wilt within the DNR program called T y unty, review the new pro- Minnesota ReLeaf, which is rams and guidelines in a matching grant program `.:.. place, and explain how to with funds provided by the , .4 _ ..r go about obtaining cost- Legislative Commission for i •- . ..?.,:k share assistance. Minnesota Resources _ Residents and landowners (LCMR). For further infor- z in Sherburne County hav- mation on the meeting or , ; � 'rr= - - . ing oak wilt can apply for about oak wilt,please call = Tou from assistance either through (763)241-2939. >" -4:3 I A �t a.Parkway r Downtown Revitalization...continued from page I accelerating the timing of of the businesses rely on and planning issues before Avenue; 52 underground parking construction, clos- public parking, adequate entering a fmal develop- parking stalls; 18 surface ing off King Avenue, and and well located parking ment agreement. It is parking stalls to the east of utilization .-- spaces are expected that the city and the building; and 32 apart- of other ' key ingre- MetroPlains could enter a ments within a three story •4 existing y t.l dients to final development agree- building. The Bluff Block space for to s� "` i the contin- ment this year will include about 10,000 parking. +� �? 3 r!i tied vitality The Downtown sq. ft. of commercial space g , t � g Project - along Parkin •-•-•:-� � , of existing Revitalization Pro ect on the first floor alon plans will -r�� 4,,_•_ .�.. .. and new includes development in Main Street; 70-80 under- --4.-----'.i.--•-_-- be pre- businesses two blocks - Jackson and ground parking stalls; 52 pared for in our Bluff. The Jackson Block units of for-sale housing Jackson Block Development th the downtown. will include about 10,000 within a three-to-four story onstruction period and The city and MetroPlains sq. ft. of first floor commer- building; and a riverwalk final development. The city will resolve the parking cial development along connection to a city park to recognizes that since many issues and any other design Main Street and Jackson be built along the river. • Rivers Edge Downtown Business Association Meeting Minutes August 13, 2003 Treasurers Report: By Jim S. Current balance in the account is $1,315.47. There was a note made that a$50.00 check written to the City of Elk River,had not yet been cashed.It was dated over a year ago. President Mikols indicated that the check would probably not be cashed and the $50.00 was to be entered back into the account. New balance is $1,365.47. Motion was made by Cindy to accept the new balance and seconded by Wendy. Secretary Report: By Wendy S. Minutes from the last meeting were given to all members prior to our meeting today. Motion was made by Cindy to accept the minutes as written,and seconded by Tony Mikols. Old Business: EDA: Downtown redevelopment: By Cathy M The HRA and City Council are reviewing responses given to the City from interested parties regarding the redevelopment of the downtown area.August 25th is the next HRA meeting. The staff will need approximately 30-60 days to review • current findings and request action to proceed. A relocation company will be out to speak with the owners of the stores that will need to be relocated during the construction of the new facilities. There will be meetings also set up for potential new commercial businesses, who are looking to relocate in the downtown area. The current focus is on financing and relocation issues. The Jackson square is a hot topic at the current time,with the findings that the new building will take 21 of the 39 spaces currently located on Jackson street(Gazebo parking lot). This has become a major issue with the project, as this parking is vital to the local merchants. Alternative parking is being reviewed at this time as well. One solution is to vacate King Ave. and take out the current utility building to allow for more parking. This would add approximately 45 new parking spaces. Alternative parking,across Hwy 10 has been looked at as well,but the safety issue of crossing Hwy 10 is a big concern. The idea's of an overpass or tunnel under Hwy 10 have been looked at,but no decision has been made to date. NOTE: HRA MEETING AT 5:00PM,AUGUST 25TH. LOCATION: LIONS PARK NOTE: CITY COUNCIL MEETING,AUGUST 18TH, LOCATION, CITY HALL This is expected to be a two year project,with phase I being the Main street bluff block and phase II being the Jackson Square block. Get you voice heard and attend these meetings! Farmers Market: We have learned that the farmers market will not be coming to downtown Jackson • square,as previously hoped. The insurance carrier no longer will insure this event. • Sidewalk sale: Next June,during our sidewalk sale,we will be looking into having music in the Gazebo for the event. This will be further reviewed next spring. New Business: Three Winners Fundraiser: Grace Gulden Grace was at our meeting and introduced a new fundraising idea. Discounts are available online for anyone who purchases a packet. The cost is$20.00 to the buyer, and the money is split 50/50 between the seller and Three Winners.Wendy and Grace will be working together to try to put this together for our group. NEW OFFICERS: The new officers were elected at today's meeting. They are as follows: President: 2003-2004: Wendy Simonson,Kemper Drug Vice President: 2003-2004: Tony Mikols,Mikols Photography Treasurer: 2003-2004: Jim Simpson, The Bank of Elk River Secretary: 2003-2004: Cindy Koonce,American National Bank of Minnesota This will be effective September 1,2003- September 1, 2004. WE WANT YOU!! WE NEED MORE OF OUR MEMBERS TO ATTEND THE MONTHLY MEETINGS! Please take a moment to complete the attached sheet and mail or fax it to Cindy. See attachment for details. • • Survey for all members: • What is the best time to meet? Currently meet at 3:00 pm. • Where would you like to meet? Currently meet at Lion's Park • Topics you would like to see us discuss? Please fax back to Cindy at 763-241-1313 or mail to: American National Bank 305 Jackson Ave. Elk River, Mn. 55330 Cindy's phone: 763-241-1300. S • Rivers Edge Downtown Business Association Agenda for Wednesday, September 10, 2003. Lions Park: 3:00pm Treasurers Report: By Jim Simpson Secretary's Report: By Cindy Koonce Old Business: Downtown Revitalization: By Heidi Hall Any update on the downtown project will be offered. NOTE: MetroPlains would like to schedule an open house meeting for prospective commercial tenants in the next 30-60 days (tentative date is October 14th, but not yet confirmed). The purpose of this meeting will be to provide information about the proposed project and details about lease space, improvements and rates. This meeting is not intended to be a general open house for the public. As stated above, the meting is for prospective commercial tenants. Please call Heidi Hall with any questions on this issue, at 763-635-1042. Please note: Nothing has been approved for construction at this point, this is a meeting to find out what interest there will be in the site, • if built. New Business: Kent Robertson will be in downtown Elk River on October 8t1. There will be a panel discussion at 3:00 that day. NOTE: We will be moving our meeting time next month to 2:00 to allow time to attend Kent's seminar. We may also be moving our meeting place on this date. Look for updates soon. Scarecrow/Halloween decorating contest: By: Tina @ Natural Expressions We will be having our annual scarecrow/Halloween decorating contest downtown this year again. Tina will be organizing this, so please offer your assistance. Pumpkin giveaway: By: Cindy Koonce American National Bank will be holding the third annual pumpkin giveaway contest again this year. The details will be given at this meeting. Farmers Market: There has been several people who talked about having a farmers market • this fall, during our scarecrow contest and pumpkin giveaway week. We will be discussing the prospect at this meeting. • Adopt a Pot program: We will be discussing the adopt a pot program, and it's feasibility, at this meeting. Meryl is looking to plant mums this fall in all the pots, as they will be left out until after Halloween this year. We will discuss the placing of the planters (pots) for next year and come up with idea's for next years plantings. We also need to provide a diagram to Phil for next years placing of the planters. NOTE: Roadwork will begin the third week in September! Main street between Hwy 10 and the tracks will be affected and Main street between Hwy 10 and the Otsego bridge also will be affected. We will be passing out information on design standards for downtown storefronts and new construction. Anyone interested contact Cindy Koonce @763-241-1300. • ELK RIVER REVITALIZATION PRELIMINARY TIMETABLE July `03 Purchase Agreement or Memo of Understanding w/City of Elk River July 24, `03 MHFA Application Aug-Oct `03 Development Agreement Sept. `03 Environmental Review Sept.-Oct. `03 TIF Conclusion Oct. `03 DTED Application/Small Cities Group Nov. `03 MHFA Award Sept.`03-Jan. `04 Site Acquisition/Relocation Sept.-Nov. `03 Plan Preparation Nov.- Dec. `03 Plan Approvals Jan.-June `04 Pre-sales of `For Sale' Units Jan.-March `04 Financial Closings Jan.-March `04 Jurisdictional Authorities Sign-offs/Approvals April-May `04 Demolition May-June `04 Infrastructure Improvements June'04-June `06 Construction of Two Phases • • Communities- Assistance Programs- Financial Resources- [Fact Sheet:] Small Cities Dev... Page 1 of 2 III Fact Sheet Small Cities Development Program Program purpose To provide decent housing, a suitable living environment and expanding economic opportunities,principally for persons of low-and-moderate income. . How It Works Provides federal grants from the U.S. Department of Housing and Urban Development(HUD) to local units of government on a competitive basis for a variety of community development projects. Eligible Applicants Cities and townships with populations under 50,000 and counties with populations under 200,000. Indian tribal governments,which can receive funds directly from HUD, are ineligible for this program. Minimum requirements Small Cities Program projects must comply with fair housing in and equal opportunity requirements. HUD's web site has • more information about fair housing and Equal opportunity Elzokt 40Dstr.ei requirements. OPPORTMTY Proposed projects must meet one of three national objectives: 1. Benefit to low-and-moderate income persons; 2. Elimination of slum and blight conditions; or 3. Elimination of an urgent threat to public health or safety. In addition, proposed project activities must be eligible for funding, project need must be documented, and the general public must be involved in the application preparation. Eligible projects State program rules subdivide grant funds into three general categories: 1. Housing Grants. Small Cities Development Program(SCDP) funds are granted to a local government which, in turn, loans funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental single-family or multiple family housing.ehabilitation. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by • grantees for the purpose of making additional rehabilitation loans. 5CDP funds may also be used as sist new housing construction projects. Funds may also be used for land acquisition, site improvements, infrastructure or housing unit construction. In all cases,housing funds must benefit low-and- http://www.dted.state.mn.us/02x01x01x05.asp 1/31/2003 Communities- Assistance Programs- Financial Resources- [Fact Sheet:] Small Cities Dev... Page 2 of 2 moderate income persons. 2. Public Facility Grants. SCDP funds are granted for wastewater treatment • projects, including collection systems and treatment plants; fresh water projects, including wells, water towers, and distribution systems; storm sewer projects; flood control projects; and, street projects. 3. Comprehensive Grants. Comprehensive projects frequently include housing and public facility activities described above. In addition, comprehensive projects may include an economic development activity, which consists of loans from the grant recipient to businesses businessesiathuilding renovation/construction,purchase of equipment, or working capital. The most common economic development activit is rehabilitation of local commercial districts. Maximum available The maximum grant award for a Public Facility or Housing project is $600,000. The maximum grant for a Comprehensive project is $1.4 million. Other funds required The amount of other funds required is variable and contingent on the project type, other available sources of funds for the project, and the financial capacity of the applicant and local benefiting residents. Terms The length of project period is normally between two and three years, depending on • the size and scope of the project. Application accepted Part I pre-applications of the Business and Community Development application can be submitted year-round. Complete applications (including Part II) must be submitted by Oster 1 of each year. Grant awards /414/4445€ The annual review and ranking period will commence on Ctetkylget 1. Grant awards will be announced each March. Approving authority Department of Trade and Economic Development. Disbursement of funds Grant monies are disbursed as project costs are incurred. lir Contact DIED.._...Regional Representative Print This Page 1111 Copyright©1999-2003,Minnesota Department of Trade and Economic Development.All rights reserved. http://www.dted.state.mn.us/02x01x01x05.asp 1/31/2003 411 '►1�j City of Elk -�-. River MEMORANDUM TO: Housing and Redev oprment Authority FROM: Michele McPhers I irector of Planning DATE: September 22, 2003 SUBJECT: Comprehensive Plan Update This memo is to remind the Housing and Redevelopment Authority of the remaining scheduled meetings for the adoption of the Comprehensive Plan. The Planning • Commission will hold a public hearing on the plan at its October 28, 2003 meeting. The Commission will take testimony during the public hearing and make a recommendation to the City Council regarding adoption of the plan,with or without suggested changes. The City Council will then also conduct a public hearing at its November 17, 2003 meeting. At that time,the City Council may,by 4/5's vote, chose to adopt the plan as presented or with changes directed to be made prior to publication. If there are any questions regarding the plan,please feel free to contact Rusty Fifield at Hoisington Koegler Group Inc. at 612/252- 7133, or me at 763/635-1031. • S:\PLANNING\Comp Plan\Memos\3-22 IHRA memo.doc