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6.0. HRSR 10-27-2003 ITEM 1 6. . 4& City of Elk River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: October 27, 2003 SUBJECT: Downtown Revitalization Project Update Attachments • Downtown Revitalization Project Description,July 2003. • Staff Memo to City Council Regarding Public Hearing for SCDP Grant Application • Draft Minutes of the October 8, 2003 River's Edge Business Association Meeting • Correspondence from Mr. Steve Camp, and Ms. Loretta Moos • 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. Development Agreement 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. The development agreement will include a provision that requires the developer to present,prior to final project approval by the HRA and Council,a parking plan for the construction and post construction period. Staff has also been working with Ehlers &Associates to provide a financial analysis of the proposed projects,including estimated tax increment finance projections. The proposed TIF details will be presented to the HRA for consideration as part of the development agreement. An item of note is that the HRA's Preliminary Redevelopment Agreement with MetroPlains officially expires on November 1, 2003. Staff has been advised that a formal extension by written amendment to the agreement is not necessary. However,MetroPlains is requesting that the HRA consider a motion to continue to work with MetroPlains Development under the spirit of the Preliminary Redevelopment Agreement, but now including Jackson Block, for a period up to January 30, 2004. Downtown Revitalization Project Update October 27,2003 HRA Meeting Page 2 of 2 • Financing Applications 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. Staff will provide a verbal report at the HRA meeting regarding the result of the MHFA financing application,which will be announced on October 24`h. 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). In response to the HRA's recommendation,the Council directed staff to proceed in preparing the SCDP application for the purpose of obtaining grant funds for commercial and residential rehabilitation, and new residential rental construction,in the Downtown Revitalization Project Area. Following the HRA meeting,the City Council will hold a public hearing regarding the proposed SCDP application. Staff has met with several property owners who indicated interest in the proposed commercial and residential rehabilitation program. The City's SCDP application will be submitted to DEED at the end of October. Announcement of grant award is anticipated in early March of next year. • Communications The Director of Planning attended the recent meeting of the River's Edge Business Association. Draft minutes from the River's Edge meeting is attached. Staff also recently hosted a group of 25 students from the St.Cloud State University Downtown Development class on October 8th. Students started with a fieldtrip to downtown Elk River and a panel discussion with representatives from the River's Edge group,MetroPlains,the Heritage Preservation Commission, and city staff. Students commented on their opinions and observations of downtown Elk River's strengths and weaknesses. Staff received the attached correspondence regarding the proposed Downtown Revitalization Project. Staff did not provide any follow up response. Other Project Activities An open house meeting regarding commercial/retail leasing opportunities in the new proposed project,was recently hosted by MetroPlains and Brookstone,Inc. on Wednesday, October 22nd. There were approximately 25 attendees,most of which represented existing business and property owners from downtown Elk River. Staff continues to work with city attorney,Peter Beck to research the title and ownership of the Jackson Square property. An abstract has recently been created for the property. A survey and legal description is being prepared by the city engineer in order to prepare a title commitment,which is anticipated in the next 30 days. ETROPLAINS DEVELOPMENT LLC • PROPERTIES INC "housing the heartland " 1600 University Avenue,Suite 212 St.Paul,MN 55104-3825 Phone:651-646-7848 Fax:651-646-8947 January 27,2004-_ Catherine Mehelich Director of Economic Development City of Elk River 13065 Orono Parkway Box 490 Elk River MN 55330 RE: Pre-Development Agreement Dear Catherine: • We are rapidly approaching November 1st which is the date that the Preliminary Development Agreement expires. We are very active in the process of securing financing and working through the related issues of the Development Agreement with the City of Elk River. As you know these items are very complicated and sometimes take more time than anticipated. We, therefore, request that the Preliminary Development Agreement be extended until January 30, 2004. This should allow us to get through the issues relating to the Development Agreement at the same time working through the time frame of the holidays here at year-end. We appreciate the continued coordination and team building with the City of Elk River and MetroPlains to realize this important project in the revitalization of Downtown Elk River. Sincerely, LaVerne Hanson, Jr. cc: Jeanne Kelsey Rick Martens G:\Elk River\mdl\Letter Melevich re Predevelopment Agreement -i d, Dawg,t-a wit etiti,t-alt>zatiol/t/ • City of PROJECT DESCRIPTION Elk .., dowatim„,........ JULY 2003 , IE�. i_\7 e 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 e ' utilizing the riverfront location. Redevelopment will qr � , enhance downtown Elk River's role as a residential, �� f retail and commercial area and also revitalize invest- - ment in the downtown business district. Development Objectives: - � ��, " ,:'�� - r ' � ,� . • Mixed use(residential/retail/service) � �� • Consideration of the historic context study results ♦ ; • Strengthen connection to the community * • Traditional downtown design elements q��. �� � � ; � �- ,� . ' �, • Brick,stucco,stone materials with visual breaks ins � � a the building design _ t � ¢-et- z • • Increased residential density .ry . .,, _ k `' • Pedestrian orientation - a • Increase exposure to the riverfront - ' "` • Recognize those buildings that have potential - -° . . y .-- 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 s.f. commercial on first floor along g Main Street($13/s.f. avg. rent) — 52 units of for-sale housing ry,: , — 3 and 4 stories � '' ` — 70-80 below grading parking stalls for housing � i =c � , , &commercial residents � �� � ' r� � ( *lot t — Connection to City's Riverwalk development ,Ert { �� ,� , � • JACKSON BLOCK DEVELOPMENT °' ' (. S f l — 10,000 s.f. commercial on first floor along 4' V ;' t -- ii :4 - Jackson Street and at the corner of Jackson � � Ef ., '* 1 a' ' and Main . '€ '` — 32 units rental housing 161-bedroom units at ` t ' • $''''s,` $600 per month &16 2-bedroom units �.x at$700 per month) — 3 stories • — Up to 52 below grade parking units for housing residents and commercial and 18 surface units •JACKSON BLOCK DEVELOPMENT City of Elk. River MEMORANDUM TO: Mayor and City Council pelf: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: October 27, 2003 SUBJECT: Consider Small Cities Development Program Grant Application for Downtown Revitalization Project, Public Hearing & Resolutions Attachments • Notice of Public Hearing • • Map of Downtown Revitalization Project Areas • Draft Commercial and Mixed-Use (Residential) Building Rehabilitation Program • Local Government Resolution and Compliance Certification • Resolution Identifying"Slum and Blighting" Conditions Background At its meeting on October 27, 2003,the Elk River City Council will conduct a public hearing on the grant application to the MN Department of Employment&Economic Development (DEED). The City of Elk River seeks grant funding from DEED under its Small Cities Development Program (SCDP). If awarded,the SCDP grant funds will be used by the City to meet two federal objectives: to benefit low and moderate-income residents, and to alleviate blight conditions in the downtown target area. Funds will be requested to reduce the costs of financing commercial and residential building improvements in the downtown target area, and to reduce the cost of developing new rental housing in the target area by supplementing other sources of private and public financing. The purpose of the public hearing is to discuss the funding request to DEED and to discuss the impact this proposed grant has in meeting the City's community development objectives. Following the public hearing,the City Council may consider adoption of the applicable resolutions. The grant is contingent upon the City's final approval of the proposed Bluff Block and Jackson Block projects. Application does not commit the City to final approval. 4110 Small Cities Development Program Grant Application October 27,2003 City Council Meeting Page 2 of 3 4110 Staff will be present at the City Council meeting to discuss details of the proposed SCDP grant application. In addition, staff anticipates attendance from business and property owners within the downtown target area, some of which have indicated interest in the rehabilitation program. Details of Proposed Project and Funding Request to DEED Commercial and Mixed-Use (Residential) Rehabilitation The largest 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 attached Commercial and Mixed-Use (Residential) Building Rehabilitation Program outlines how financial assistance could be provided to commercial and residential rental property owners. The grant funds are proposed to be provided to property owners as a deferred 0%interest loan that could be used to leverage the City's existing Micro Loan Redevelopment Financing Program and private financing. The rehabilitation of adjacent properties in the downtown supports the City's revitalization objective to recognize buildings that have potential for rehabilitation. Rehabilitation must include building, accessibility,fire, and energy efficiency code improvements, as well as facade improvements. The following areas, highlighted on the attached map,will be included in the SCDP grant application for the purposes of commercial and residential rental rehabilitation: • "Brick Block" -the west side of Jackson Avenue between Main Street and Hwy 10 • Block of properties between Sunshine Depot and Mikols River Studios The above-mentioned blocks contain 13 commercial buildings and 5 residential rental units. New Residential Rental Construction A portion of the SCDP application will include a request for gap financing of the residential portion of the proposed MetroPlains Jackson Block development,described as follows: • 32 units residential rental housing (16 1-bedroom units at $600 per month, and 16 2- bedroom units at $700 per month. • 10,000 square feet commercial on the first floor along Jackson Street and at the corner of Jackson and Main. • Up to 52 below grade parking units for housing residents and commercial, and 18 surface units. Administration The SCDP application will include a request for administrative costs related to implementing the projects as described above. Staff has had discussions with the Tri-County Action Program, Inc. (TRI-CAP) for the administration of the grant funds. TRI-CAP has submitted a contract for administrative services proposal to staff and TRI-CAP is experienced in administering rehabilitation programs, including a SCDP project in Foley,MN. Upon grant award, staff recommends that the City consider contracting with TRI-CAP for the project administration. • Small Cities Development Program Grant Application October 27,2003 City Council Meeting Page 3 of 3 • Action Requested After conducting the public hearing on the SCDP grant application, staff recommends that the City Council adopt the following attached resolutions: • Local Government Resolution and Compliance Certification The Local Government Resolution formally authorized the Mayor and Director of Economic Development to submit the application to DEED and to execute agreements as necessary to implement the project on behalf of the city. The resolution also certifies that the City of Elk River will comply with all applicable laws and regulations as described in the attached Compliance Certification. • Resolution Identifying "Slum and Blighting" Conditions The application for rehabilitation funds requires a local resolution that summarizes the general conditions and states that the conditions,which exist in the target area,meet the statutory requirements and definitions necessary to meet the federal objective. The Tax Increment Finance Redevelopment District Eligibility Assessment and Building Condition Reports, completed by S.E.H. Engineers earlier this year,was evaluated by staff to determine conditions and specific properties that meet the slum and blight definition. Formal notification from DEED on the grant award is anticipated in early March of next year. • • • For publication on Wednesday, October 15, 2003 and Wednesday, October 22, 2003. Please contact Catherine Mehelich with any questions at (763) 653-1041. NOTICE OF PUBLIC HEARING CITY OF ELK RIVER The City of Elk River will conduct a public hearing on Monday, October 27, 2003, at 6:30 p.m. to be held at the Elk River High School Little Theater, 900 School Street, Door H on the north side of the building, to consider a grant application to the Minnesota Department of Employment and Economic Development (DEED). The City of Elk River seeks grant funding from DEED under its Small Cities Development Program. If awarded, the DEED grant funds will be used by the City to supplement other sources of public and private financing to benefit low and moderate-income residents and to • alleviate blight conditions in the downtown target area. Funds will be requested to reduce the costs of financing commercial and residential building improvements in the downtown target area. Funds are also being requested to reduce the cost of developing new rental housing in the target area. The purpose of the public hearing is to discuss the funding request to DEED and to discuss the impact this proposed grant application has in meeting the City's community development objectives. All persons desiring to appear at the public hearing will be afforded an opportunity to express their views with respect to the proposed Small Cities Development Program application and the impact this grant has in meeting the City's community development objectives. Interested persons may also file written comments expressing their views with Director of Economic Development to the date of the public hearing. If you would like information regarding the above-described public hearing, please contact the Director of Economic Development, Catherine Mehelich, at Elk River City Hall, (763) 635-1041. Catherine Mehelich Director of Economic Development :'�, '5= z City of Elk River • J , a all•1 • V KIA2II 8 U � � a N N eri,4 „ , , , .. tv, , . , my II tia, , ��• •• •:� H NM 0 N • /c5:)1 : 1-:,,:ixt.,o.:04.ftt4 1I:II ! / •��•� 44 P-I ----� i••♦ ♦ C s Z 9••�•�•i ►••►i❖i• C : � N y sip. I �•••••� H w � �••••• H V . ►'•'•••0 N , .,7* ii I y 7 : ,,,,,,v.,,.,,;,.t4;,, avii A •�•�• 4 H ►•�ii� '�•iiii• W ' sd.vaw k3 ■ • co 0 S 0 ; ;•�:••�;,A w 0 0 411 ■ 'i•••�iti� Q * 4, 4, JA V X07 Q 0•o •e. 53 ,* W J ilIPIIIMIN City of Elk River • Downtown Revitalization Project n ,� L Commercial and Mixed-Use (Residential) BuildinaDRAFT Rehabilitation Program Purpose The City of Elk River is notable for its downtown commercial district adjacent to the Mississippi River. There are many intact and historically unique buildings. The Commercial and Mixed-Use Building Rehabilitation Program has been designed to enhance the City's Redevelopment Financing Program (Micro Loan) and to provide the financial incentive necessary for property owners and business tenants to bring their properties up to desirable community standards. The City believes that it is crucial to preserve the older buildings, maintain the tax base and generally enhance the economic viability of the city core. New housing in the downtown will generate increased business further justifying renewed reinvestment. Eligible Improvements Building owners may make exterior improvements that will prevent or eliminate blighting conditions where the property has been determined to be substandard. Building improvements and repairs must correct defects and deficiencies that affect the safety, energy consumption,habitability, handicapped accessibility,or appearance of the property. Conditions of Participation Participants in the Commercial and Mixed-Use Rehabilitation Program must agree to the following program requirements: • Building condition inspection/evaluation • Approval by the State Historic Preservation Office • Asbestos and lead evaluations; abatement where required. Temporary relocation may be required if abatement is necessary. Costs may be included in loan. • Competitive bidding and federal labor standards (prevailing wages,weekly payroll reviews, etc.) will apply to the entire project. • Residential rental properties must agree to rent units to low and moderate income tenants at rents,including utilities, no more than HUD Fair Market rents. Financial Assistance Commercial Properties. The City of Elk River (with SCDP Program funds) will provide 5-year deferred loan financing for up to 40 percent of the project cost for eligible improvements. The City will commit its Redevelopment Financing Fund (Micro Loan) for up to $50,000 of the balance of the project,in addition to private sources - either new equity investment or commercial financing. Participants who retain ownership of the property for 5-years or more will not have to repay the loan. Repayment in full will be required if property ownership is transferred 5-years following closing. Residential/Mixed-Use Properties. Under the Residential Rehabilitation component, owners may request up to $15,000 per unit to make health and safety codes and energy efficiency improvements. There is no match requirement; however property owners will be responsible for financing • improvements in excess of$15,000. At least 51% of the units must be occupied by low and moderate-income households and rent levels shall not exceed the HUD Fair Market rents. Owners will be encouraged to use other public financing as might be available through the Minnesota Housing Finance Agency. CITY OF ELK RIVER • RESOLUTION NO. 03- A LOCAL GOVERNMENT RESOLUTION FOR THE CITY OF ELK RIVER RELATING TO THE SUBMISSION OF A BUSINESS AND COMMUNITY DEVELOPMENT APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT ON BEHALF OF THE CITY OF ELK RIVER MN 55330 BE IT RESOLVED that the City of Elk River act as the legal sponsor for project contained in the Business and Community development Application to be submitted on approximately October 31, 2003 and that the Mayor and the Director of Economic Development are hereby authorized to apply to the Minnesota Department of Employment and Economic Development for funding of this project on behalf of the City of Elk River. BE IT FURTHER RESOLVED that the City of Elk River has not violated any Federal, State, or local laws pertaining to fraud, bribery,kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state,the City of Elk River may enter into an agreement with the State of Minnesota for the above referenced project, and that the City of Elk River certifies that it will comply with all applicable laws and regulations as stated in all contract agreements and described on the Compliance Certification of the Business and Community Development Application. NOW,THEREFORE BE IT RESOLVED that the Mayor and Director of Economic Development, or their successors in office, are hereby authorized to execute such agreements, and d amendments thereto, as are necessary to implement the project on behalf of the applicant. I CERTIFY THAT the above resolution was adopted by the City Council of the City of Elk River on the day of , 2003. SIGNED: WITNESSED: Stephanie Klinzing Date Joan Schmidt Date Mayor City Clerk Catherine Mehelich Date • Director of Economic Development S:\Downtown Revitalization\Financing\SCDP\Local Govt Resolution2.doc Compliance Certification • 1. Single Audit Act Amendment of 1996 P.L. 104-156, Chapter 75 of title 31, g � USC), which establishes audit requirements for state and local governments receiving federal funds. 2. OMB Circular A-87 - Establishes Principles for Determining Costs Applicable to Grants and Contracts with State Local and Federally recognized Indian Tribal Governments. 3. Section 504 of the Federal Rehabilitation Act of 1973; the Americans with Disabilities Act (ADA), MN Statutes 1990, Chapter 363, Chapter 363 MN Human Rights Act - Require that all public facilities and programs be designed and constructed to be accessible to the physically handicapped. 4. The Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, the AUAR, (Federal Register March 11, 1988, Volume 53, Number 48) B Establishes requirements for procurement and financial management. 5. Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and subsequent regulations - It ensures access to facilities or programs regardless of race, color, national origin or sex. 6. Executive Order 11246, as amended by Executive Orders 11375 and 12086 and • subsequent regulations - prohibit employment discrimination on the basis or race, color, religion, sex or national origin. 7. Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended and subsequent regulations, the Uniform Act - Identifies procedures for the acquisition of property and the relocation of persons and businesses. 8. Executive Orders 11988 and 12148, Flood Plain Management - Requires action to minimize the impact of floods on assisted projects. 9. Executive Orders 11625 and 12138 - Encourage recipients to award construction,. supply and professional service contracts to minority and women's business enterprises. 10. The Flood Insurance Purchase Requirements of Section 102a of the flood Disaster Protection Act of 1973, (P.L. 93-234) - Requires the purchase of flood insurance in communities where such insurance is available for construction or acquisition projects in any area having special flood hazards. 11. The National Environmental Policy Act, NEPA of 1969 (42 USC, Section 4321 et. seq.) and other related acts related to the environment- Requires an analysis of projects, environmental impact and a description of efforts to mitigate the impact. Other related acts refer to environmental quality. • Compliance Certification Small Cities Development Program Grant Application Page 2 of 3 • 12. Section 401f of the Lead-Based Poisoning Prevention Act, as amended(42 USC, Section 4831 b) requires the removal and prohibits the use of lead-based paint. 13. Federal Fair Labor Standards Act (29 USC, Section 201 et. seq.) - Requires that employees be paid at least minimum wage and that they be paid one and one-half times their basic wage for all hours worked in excess of the prescribed work week. 14. State Laws, the Davis Bacon Act (40USC, Section 276a - 276a5), Copeland (Anti- kickback Act, 40 USC 276c) and the Contract Work Hours and Safety Standards Act of 1962 (40USC, Section 327-333) - Requires payment of wages, at hourly rates, as established by the Department of Labor. 15. Section 3 of the Housing and Urban Development Act of 1968, as amended _ Encourages the employment and training of lower-income people and awarding of contracts to businesses located with the community.receiving assistance. 16. Title VIII of Civil Rights Act of 1968, as amended and executive order 12259 - Requires equal opportunity in housing and non-discrimination in the sale or rental of housing and actions to affirmatively further fair housing. 17. Requirements specified in the Housing and Community Development Act of 1974, as amended - establishes the Small Cities Development Grant program. 18. Act Discrimination Act of 1975 - Prohibits discrimination on the basis of age. • 19. Minnesota Statutes Sections 176.181 - 176.182 - Requires recipients and subcontractors to have workers compensation insurance coverage. 20. Clean Water Act and Executive Order 11288 - Requires protection of surface and ground water resources. 21. Minnesota Statutes Sections 471.87 and 471.88 - Forbids public officials from engaging in activities, which are, or have the appearance of being, in conflict of interest. 22. The Minnesota Government Practices Act - Protects the privacy of individuals who participate in Community Development-assisted programs by prohibiting the public disclosure of participant=s income and other personal information. 23. Antitrust or unfair trade practices laws - Regulates and controls the sale of goods and services and prohibits deceptive and unfair competition between businesses. 24. 43 U.S.C. Section 18.100, entitled Limitation on use of appropriated funds to influence certain federal contracting and financial transactions. Requires a certification that no federal funds have been utilized to lobby or gain undue influence. 25. Executive Order 12549, Debarment and Suspension (43 CAR, Part 12 and Section 12.510) - Requires a certification regarding Federal debarment, suspension and other responsibility matters. F:\SHRDOC\Downtown Revitalization\Financing\SCDP\Compliance Certification.doc Compliance Certification Small Cities Development Program Grant Application Page 3 of 3 411 26. Executive Order 91 - 3, Wetlands - Requires grant and loan recipients to apply the principles of no-net-loss of Wetlands during the conduct of their project. 27. The Drug Free Workplace Act (P.L. 100-690, Title V, Subtitle D) - Requires that grantees certify that they will provide a drug free workplace. 28. Section 519 of Public Law 101-144 (1990 HUD Appropriations Act and Section 104(1) of HAD Act) - Requires that each local unit of government adopt, enforce a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations. 29. Section 1352, Title 31, U.S. Code- Requires that language of certification regarding lobbing for contracts, loans and agreements be included in award documents for all sub awards at all tiers. Section 319 of Department of Interior and Related Agencies Appropriations Act, known as the Byrd Amendment prohibits the use of federally, appropriated funds for influencing any Executive or Legislative Branch personnel in the awarding Federal contracts, grants, or loans. It also requires, where appropriate, the completion of Disclosure Form SF-LLL. 30. Subpart C of 24 CFR Part 12 - Provides for Disclosure/Update from applicants/recipients of HUD assistance relating to the amount of assistance received, sources and uses of funds, and interested parties, and requires the completion of HUD Form 2880. 31. M.S. 290.9705 - Requires that 8 percent of each payment paid to out-of-state contractors for work in Minnesota must be withheld on any contracts that exceeds or could reasonable be expected to exceed $100,000, unless the requirement is waived. The City of Elk River will comply with the Compliance Certification, and as so stated in the accompanying Local Government Resolution. Authorized Official Date F:\SHRDOC\Downtown Revitalization\Financing\SCDP\Compliance Certification.doc CITY OF ELK RIVER RESOLUTION NO. 03-__ RESOLUTION IDENTIFYING"SLUM AND BLIGHT" CONDITIONS WHEREAS, the City of Elk River is undertaking a program of downtown revitalization and redevelopment; and WHEREAS, the City of Elk River has identified a specific area hereafter referred to as the "Slum/Blight Area" in which revitalization activities will occur; and WHEREAS, the Elk River City Council has assessed the condition of the buildings and the other characteristics of the Slum/Blight Area and has determined that the area can be characterized as blighted by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design,lack of ventilation, light and sanitary facilities, excessive land coverage or deleterious land use or obsolete layout or any combination of these or other factors which are detrimental to the safety,health,morals, or welfare of the community,in accordance with M.S. 469.002, Subd. 11. FURTHERMORE, the Elk River City Council has identified deteriorating conditions of the commercial and residential units,the inability of commercial structures to meet codes,the general condition of deteriorating storefronts and rear entrances of the commercial buildings, and • rental units in mixed-use buildings that do not meet code requirements as contributing to the slum and blighting conditions of the targeted slum/blight area. THEREFORE, BY RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK RIVER THE AREA IDENTIFIED AS THE TARGET AREA(SEE ATTACHED MAP) IS CHARACTERIZED BY CONDITIONS MEETING THE DEFINITION OF "SLUM AND BLIGHT". Passed and adopted this 27th day of October 2003. Stephanie A. Klinzing,Mayor ATTEST: Joan Schmidt,City Clerk • S:\EDA\HRA\RESOLUIT\2003\slum blight resolution.doc 0 ___p 4171 r NW , 44, 8 0 A CEO z d�runxl �� va i m s�� : thy... ,o, G q �� 1 I1 Q �44 u MI 0 • G �.�- 0079 VWyWJ ` ■,wti , 1,V �Q �♦ ) sx��r 1 Vie►•.. s //,''' ' ■ It'lL W IN.4 LI] E7_ :I , V* 4,- ir 7711,107 ` �� ,. l, CT0 li Z ., 11..\ **4 t- ti f • Rivers Edge Downtown Business Association Meeting Minutes from Wednesday, October 8, 2003 Secretaries Report: Cindy Koonce The minutes were distributed and accepted as presented. Treasurer's Report: Jim Simpson Jim called in our current balance,which is $1,511.88. Old Business: Scarecrow decorating contest: Tina,and Peg (The Nook), and Lyla (Creative Genius) We will be having a scarecrow decorating contest again this year. Flyers have been passed out to the downtown businesses for this event. If you have not received a flyer,please contact Wendy at Kemper Drug. The above three ladies have volunteered to chair this event. Thank you to all of three of you! Adopt a Pot: Meryl G. Meryl has done a fabulous job with the flowers once again this year. Thank you • Meryl"' You can adopt a pot by contacting Meryl at#441-1317. For a$20.00 fee you can assure that you will have a pot in front of your shop and flowers planted. The flowers can be taken home this fall,for you to plant, or Meryl will move them down to the river park. This is a first come first serve offer. We cannot have two pots together on the streets, they need to be spaced apart. Call today to reserve your pot for next spring! Pumpkin Contest: Cindy Koonce This year will be our third annual pumpkin giveaway. Details and tickets will be passed out next week to all downtown merchants. This is a big draw for the downtown businesses. In order to get a free pumpkin,the children (along with their parent(s),must go into five downtown businesses and collect five tickets. They bring their tickets into American National Bank on October 30-31 and can pick out the pumpkin of their choice. Last year we gave away over 50 pumpkins and 10 prizes for best costume. New Business: Thursday Night Promotions Downtown: We are looking for businesses who will be willing to stay open at night,one or two nights a week,from Thanksgiving thru Christmas. This would be a great time to offer specials, sales and other enticements to come downtown to shop! Please contact Wendy at Kemper Drug if you are interested. • Christmas Holiday Decorating: Next month we will be discussing holiday decorating. We will want all downtown businesses to participate if possible.Please try to make the next meeting and bring your creative ideas! Group Holiday advertising: Marlys, Star News Marlys will be looking to the downtown group to see who would like to join in on a group advertising promo for the holidays.Please contact Marlys if you want to participate. Santa Claus: He's coming to town. We are looking for a business to sponsor Santa this year. In the past,Anne @ Avalon would have Santa come in and meet the children.This is a great holiday tradition.Please contact Wendy if you would like to have Santa come in for a day or two. Upcoming meetings of interest: October 13: City Council will hold their meeting to discuss the Downtown Revitalization Project. Information will be given at this meeting as to where the project status is at this time. Meeting time: 6:30 @Lions Park Center, 1104 Lions Park Drive. THIS IS ONE MEETING THAT YOU WILL WANT TO ATTEND TO GET YOUR QUESITONS ANWERED! • October 22: Open house for all businesses interested in leasing space,if the downtown renovation project moves forward. Time: 4:45-6:30 at the- T°hea r. October 24: Wine Tasting The Elk River Area Arts Alliance will be hosting a Wine Tasting event at the Rogers Community Center,21201 Memorial Drive,Rogers. Tickets for this event are $30.00 for individuals and $50.00 for two. The evening events will be: 7:00 ERAAA Annual report and remarks. 7:30 Wine Tasting followed by Great Music and Dancing with the Reuben Ristrom Jazz Quartet. Bring your own mask(optional),purchased or of your own creation, to wear during the earliest dances of the evening. Mask collections will be on display! This will be a fun evening. Reserve your tickets now by calling: 763-441-4725 or email your request to : elkriverart @sherbtel.net October 27: HRA meeting An update on the Downtown project will also be offered at this meeting. UPDATE: Not much has changed.The City is working with the developer to seek funding for this project,which will include a grant request.Part of the grant money will be used for rehab of current stores in the downtown district. The money will be • used for safety improvements first and code compliance. Then down the road to outside improvements (facade). • The EDA wants to hear from you as to what your thoughts are on the downtown improvements! Call Cathy or Heidi at City Hall with your questions and concerns or contact Heidi,via email, at hhall @ci.elk-river.mn.us. Gazebo parking update: The City continues to work on the title for this property and also are looking into the financial feasibility of building a structure in this area. Alternative parking is being researched. Call the EDA department with questions. Finally,it is with great sadness that I must resign my position with Rivers Edge.I have accepted a position at Woodlands National Bank of Onamia, and will begin my new job on November 3, 2003. My last day at American National Bank will be Friday, October 24`h. I have been offered my dream position,in an area where my husband and I have always wanted to live.I will miss all of you,very much. However,there is now an opening for the position of secretary for the club.Please contact Cindy at 241-1300 if you are interested in filling this position. Thank you! Sincerely, Cindy Koonce Secretary,Rivers Edge • • Mehelich, Catherine From: Campshoe [campshoe @sherbtel.net] Went: Tuesday, September 30, 2003 2:06 PM o: cmehelich@ci.elk-river.mn.us Subject: Downtown Dear Director Mehelich, I cannot believe that the officials of the City of Elk River would even consider losing the wide open space that is refered to as Jackson Square. That space, with the flagpole, and the new gazebo (remember, there was one there a long time ago) is part of Elk River's identity. I have been a resident of Elk River for 14 years, but as a child my parents and I came through elk river from Minneapolis every weekend. I vewry much miss the old iron bridge. I realize that the iron bridge had to be replaced, but please do not erase all semblance of the identy of this historic town. Any monetary gain cannot possibly be enough to pay for the loss of the openess of our present downtown. I do aggree with the part of the plan that is call the bluff block. I cannot even fathom how anyone would want to build the Jackson Block Development. I emplore you, please do not do this to our downtown! Steve Camp 1134 4th Street NW Elk River, MN 55330 763-441-1875 • • 1 • October 14, 2003 To the City Council: I can't believe that you would want to burden the people of Elk River with taxes for the down town development that has been proposed, or for the person hired as the engineer or director. I can walk less than a block and I have delivered handicapped persons to the back door of Kemper Drug to get their prescriptions. I have people all over asking me to do something about it. Because of my reputation as Court Administrator, they think I can save them! They trust me. I have a letter on file in your office that I hope you will read, or have it read to you! And I mean it. I don't mind spending money for our schools and activities which are 411 necessities or the street project because I know it is needed. The change proposed is not!!! After the first meeting this engineer told me that all they were going to do was change some of the storefronts. What a lie that was! Everyone wants the historic town atmosphere as is!! Talk about crime moving this way. You are certainly trying to help it. Attorney at Law, Paul Motin, must be looking for business. Only a miracle from God can save it. We have enough expansion to the North, East, and West of us. I pray to God that you will come to your senses. Uri:� Loretta Moos • To the Elk River City Council and to whom it may concern: lUlr 2. �� � I want you to know that I and 500 other people oppose the downtown renewal project proposals. We don't have to go to the Malls now for purchases we can get right downtown in Historic Elk River. A I 1 1 bakery /L best 14 1,..1 I 2 t1 /11 1�.....r....l. I 3 1 meat 1 No. the bakery (the best in the state); No. 2 Daddy v s restaurant; No. 3 the meat market. •of these stores have had their fronts given a new look. i see no reason to put them out of business, besides we need the extra parking behind the stores. We need all of the existing shops (beauty parlors, gift shops, barber, office bldgs., banks, the Jackson Avenue stores, laundromats, Champion Auto, etc.) We have 2 very attractive murals and could use a couple more. The talk of the river walk is preposterous. We already have one beautiful park across from the United Power, ruined by drugies and gay people, patrolled by the city police. We used to have a picnic area in the park. It was cool on a hot day. I lived in an upstairs apartment with no air conditioning so when I came home from work we would load up a picnic lunch and head for the park, a very refreshing breeze off the river. For 4th of July picnics, we need to get reservations for picnic tables. There are four picnic tables left and the restrooms have been vandalized. Now, new people have come to Elk River and they seem to know what Elk River needs. Like one lady said, the drug people have got to be someplace. I say not at the expense of the old timers. It has been predicted by the state that Elk River is a targeted crime area. The shootings will be next for police too. The movie theatre parking lot is not safe, none of the parking lots are safe at night or for ladies alone. Purses have been stolen, windows broken. It's in the police reports. Now back to the river. It will be dangerous and destructive too. I just returned from a visit with the senior citizens of this city and they saw no reason to disturb the downtown area. They like it the way it is. One person said when she worked in an office 20 years ago, looking out their office toward the river, there was drug dealing going on then. There was a well beaten path going across the old fairgrounds, toward the mouth of the Elk River where it joins the Mississippi. Motorcycles were using it from ,ceton, trespassing on the Bailey property. It was scary. No one wanted to be out at night. At the end o the mortuary parking lot, Dare's had erected steps for the residents who lived down there.They were destroyed by the youths so everyone was scared to go out at night. Residents on the river bank should be able to enjoy the river. Low income people live in the Guardian Angels apartments. They should be allowed to remain there in affordable housing. I attended one of the planning meetings and if I ever saw a snow job that was it. I have it figured out that only the newcomers to the city are pushing for the removal of the downtown. Proof of this is demon- strated further by the one running for council against John Dietz and Paul Motin is also a preacher. I asked one of them where they were when we were voting for the school bonds. If they don't like it here as is, why don't they go back where they came from and quit putting a financial burden on the rest of us. The paper is full of foreclosure notices. They are living beyond their means. I was talking with some- one from California and there are people out there that haven't had work for two years. She herself had been laid off in February and she said it is coming this way. That is where a lot of drugs are coming from because there are a lot of people buying them and all of the killings in Minneapolis are drug relat- ed. Have you ever looked into the eyes of a young person who had fried brains from drugs? They can no longer hold a job. A friend of mine (hwy. engineer) lost his only son to a drug overdose. Have you ever seen a young person who was sniffing glue. They are weird and don't know who they are. I have had 45 years of experience in the courts. Been on trials where drug people have come out to � bu drugs and because the man had made a decision to turn his life around and get out of the drug iness, they tortured him and set his body on fire several times and eventually he burned to death. Leave the drugs alone. You will either wind up in prison or dead. Keep our town free from trash. Let's keep our downtown historic!! The only people to benefit from this renewal are the planners and those trying to get the contract. I'm sure the police don't need the added responsibility. A7-i—eR-z7-----