5.2. HRSR 03-01-2004 ITEM 1 5.2.
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City of
Elk -�-�
River
MEMORANDUM
TO: Housing & Redevelopment Authority
ors
FROM: Heidi Steinmetz, Assistant Director of Economic Development
DATE: March I, 2004
SUBJECT: Downtown Property and Business Owner Feedback
Attachments
• Memo from Jim Prosser, Ehlers &Associates, dated January 27, 2004
• DRAFT Rivers Edge Downtown Business Association Minutes, December 10,2003
and January 14, 2004
• Issue
Twenty one-to-one meetings with approximately thirty-five downtown property and
business owners took place during the month of January and February. Jim Prosser of
Ehlers and Associates and Chris Leeseberg, City Planner conducted most of the meetings.
The purpose of the meetings was to gather additional input on the Downtown Revitalization
Project and particularly parking options from the downtown property and business owners.
The meetings were an additional tool used to communicate the project to the public.
The attached memo from Jim Prosser summarizes the results of the property and business
owner feedback gathered during the January one-to-one meetings. Five meetings were held
in February. Most of the feedback was consistent with the January meetings with the
exception of the below two issues.
• A few business owners mentioned a concern for their employees' safety in walking
to/from the recommended surface parking lot behind the Brick Block. One
business owner requested "extra" lighting be installed in the lot.
• The City should continue to explore additional parking options with the School
District.
•
Downtown Property and Business Owner Feedback
Page 2 of 2
. List of Meetings Held
• Ed Barder, Property Owner — Olde Main Eatery
• Jeff Krueger, Property&Business Owner — Daddy-Os
• Tony Mikols,Business Owner — Mikols River Studio
• Sue Anderson& Cookie,Business Owners — Sunshine Depot
• Mike Rafferty,Property&Business Owner — Elk River Chiropractic, P.A.
• Keith Holme, Property Owner&Joy McChesney,Business Owner — Kemper Drug
• Frank Galli,Property Owner — Diamond City Bread
• Richard Hinrichs, Property Owner — The Jungle
• Steve Johnson,Property Owner — Antiques Downtown
• Dennis Larsen,Property Owner&Mike Scheevel,Business Owner — Waterfall Spa
• Tammy Weeks,Business Owner — The Jungle
• Jeff Jenson, Property&Business Owner — Marlo's Haberdashery&Jenson&
Associates
• Chuck Christian,Property Owner — Cinema Building&the following tenants:
—Bruce Bromen,Bromen Systems
—Richard Anderson, Senior Estates Specialists
—Curt Snesrud,Thrivant Financial for Lutherans
—Bernice Johnson, Receptionist, Cascade I Land Co.,LLC
—Bob Pampusch, Farmers Union Insurance
• —Dean Peterson,Allstate Insurance
• Lyla Aaland,Business Owner — Creative Genius
• Steve King,Bank Manager — American National Bank
• Tom Kolar,Linden Corp. — Property Manager for several Brick Block businesses
and Keith Herr,Business Owner — KLH Design&Drafting
• Karen Attia,Business Owner — Olde Main Eatery
• Marcy VanValkenburg, Business Owner — Elk River Travel
• Tamara Ackerman,Business Owner — Avalon Contemporary Salon
• Rob VanValkenburg,Property Owner — Sunshine Depot
Those property and business owners not listed did not participate in the meetings due to
lack of interest or no response.
S
Page 1 of 3
EHLERS
& ASSOCIATES INC
0 To: Cathy Mehelich, City of Elk River
From: Jim Prosser, Ehlers Associates
Subject: Downtown Property and Business Owner Feedback
P
WDate: January 27, 2004
Ehlers & Associates and City staff member Chris Leeseberg have conducted a series of
thirteen interviews with downtown business and property owners. The purpose of these
meeting was to seek feedback on parking issues, including reaction to several options to
address the removal of the public parking in the Jackson Block. In addition feedback and
IIquestions were solicited on general issues related to the proposed development.
In total, fifteen meetings including about thirty people were conducted. Those
interviewed were advised that their comments would be shared with the HRA and the
City Council on a non-attribution basis. A summary of the findings is as follows:
FINDINGS
1. All of those were generally well informed and cooperative. It was clear that they
were concerned about assuring the long-term viability of the downtown area
Most recognized the need to stimulate a positive change to achieve long-term
viability. There was some misinformation about project details (i.e. the type of
proposed housing and the underground parking for retail and housing tenants) that
was corrected, however it is likely that those not interviewed may still have
misconceptions about some project details.
2. Several of the businesses along Main Street currently provide off-street parking
for employees or rent space from adjoining property owners.
3. Most agreed(including Cinema tenants) that the Jackson parking lot was
primarily in daytime hours used by Cinema Building employees and clients.
Observations during the days interviewed appeared to confirm this
• N
Jim Prosser,CIPFA (651)697-8503 Fax:(651)697-8555
Executive Vice President/Director jim @ehlers-inc.com
3060 Centre Pointe Drive http://www.ehlers-inc.com
Roseville,MN 55113-1105
Page 2 of 3
4. No one supported the idea of a pedestrian bridge over Highway 10.
5. There was strong support for the idea of an expanded parking lot behind the Brick
Block whether the proposed development proceeded or not. Most (including
Cinema Building tenants) thought that this would mitigate the loss of the Jackson
Block parking. This support was conditioned on the premise that the expanded
parking would be in place prior to the loss of the Jackson Block and that the lot
would contain an area reserved for employees of the downtown merchants.
6. There was support to close King access to Highway 10 to accommodate the
expanded parking. Some observed that this would discourage the commuter
parking that presently occurs on this site. One interviewee did indicate that the
loss of King access would degrade traffic flow in the downtown area
7. There was minimal support for preserving the Utilities building both because of
perceived lack of historical significance and the need for parking.
8. There was general support for a parking ramp (two level) behind the Brick Block.
But recognition that the cost may not be justified based on current parking
requirements.
. 9. Most of those interviewed acknowledged that employee on street parking reduced
the available parking for customers.
10. Two business owners (out of the 15 property and business owners interviewed)
opposed the development on Jackson block under any circumstances. One of
those encouraged the City to evaluate moving the proposed Jackson development
to the north of Highway 10 and across the railroad tracks as a superior location.
11. There was strong support for a pedestrian countdown timer for the Highway 10
and Jackson Avenue intersection.
12. There was mixed, but generally positive, support for the renewed enforcement of
three hour parking limits if reserved parking was provided for employee parking
in the expanded parking lot behind Kemper Drug.
13. One business identified the potential for creating more private off-street parking,
however cooperation between the City and adjoining property owners would be
required.
3060 Centre Pointe Drive «Phone» Fax:(651)697-8555
Roseville,MN 55113-1105 «Email_Address»
hdp://www.ehlers-inc.corn
Page 3 of 3
•
RECOMMENDATIONS
Based on the interviews conducted the following recommendations are provided:
1. The City should construct the surface parking lot behind the Brick Block. This
recommendation includes removal of the Utilities building. The parking should be
installed prior to removal of Jackson parking.
2. Additional efforts should be made to encourage usage of existing commuter "ride
share" parking options on the north side of Highway 10. This could include
signage and public education. Those currently parking on the south side of
Highway 10 within the downtown area should be interviewed to assess barriers to
use of designated parking.
3. The City and the existing downtown business group should cooperatively develop
efforts to encourage education and self-policing of employee parking.
4. The City should renew its enforcement of 3 hour parking limits within the
downtown area in conjunction with the cooperative efforts with downtown
merchants.
• 5. A couple of business owners thought that in the long term, consideration should
be given to evaluating development of additional ramped parking in cooperation
with the Bank of Elk River as an option for additional parking in the future.
6. A pedestrian countdown timer should be installed at the intersection of Highway
10 and Jackson Avenue.
7. The City should consider some cost sharing with business for building and
maintaining employee parking within the downtown area.
8. The City should explore options to permit the private development of additional
off-street parking as permitted.
9. The City should consider assisting Brick Block businesses in design and funding
for improvements to the rear entrances of their businesses.
• a
3060 Centre Pointe Drive «Phone» Fax:(651)697-8555
Roseville,MN 55113-1105 «Email_Address»
http://www ehlers-inc.com
A FT
Rivers Edge Downtown Business Association Minutes
• December 10, 2003
The meeting was called to order at 8AM at the Elk River Chamber of Commerce Meeting
Room. Attending were Tony Mikols, Lance Lindberg, Cliff Lundberg, Meryl Gisselquist,
Marlys Ellingson, Pat Klaers, Heidi Steinmetz, Jeff Gongoll and Wendy Simenson.
Secretary's Report: The minutes from the last meeting were accepted as written.
Treasurer's Report: The Balance is $2453.92.
We have receive 2003-2004 dues from the following businesses and individuals: Sara
Hartman, Bank of Elk River, Mikols Photography, Antiques Downtown, Kemper Drug,
Dr. Jarmoluk (Elk Dental Center), Cynthia's Stamps, Creative Genius, First National
Bank, Sherburne County Abstracts, Lance Lindberg, St Maximilian Catholic Book Store,
Cliff Lundberg, Elk River Arts Alliance, Elk River Chamber of Commerce, Elk River
Travel, American National Bank of Elk River, Marlos Haberdashery, Meryl Gisselquist.
Please tell Wendy or Jim if you have paid your dues and your name is not listed. If you
have not yet paid your dues, please feel free to give them to Wendy at Kemper Drug or
Jim Simpson at the Bank of Elk River.
Old Business
• City Update: Heidi Steinmetz stated that the HRA will be scheduling one-on-one
meetings with individual property owners and downtown businesses to discuss impact of
revitalization and parking.
The question was raised why some businesses downtown were not included in the
proposal for the potential downtown improvement loans. The answer was that those
businesses located in areas where redevelopment was proposed for the future would not
initially be eligible for the loan money.
The City has been looking at safe pedestrian crossing of Hwy 10. Pat Klaers mentioned
that the City Engineer is looking into MnDot's pedestrian countdown timers for Highway
10 and Jackson Ave that would count down from the walk signal to the green light so that
people would know how much time was left for them to cross before the light would
change. The City is also looking at the costs and feasibility of putting a pedestrian bridge
over the highway for pedestrian traffic.
Many businesses voiced concern about existing parking downtown. With the potential
loss of the Jackson Square Lot, the City has been looking at finding more parking in the
area behind the Brick Block. MnDot and the School District have been approached to
discuss closing King and using that space for additional parking for downtown. There is
also the possibility that the Utilities Building will be torn down to make way for more
parking. The elevations of the lot area would make it a possible spot to build a two level
•
ramp and the City is looking at the costs and practicality of doing that.
[nip A..F1113
Holiday Lights Downtown: Meryl did a great job putting lights on the boulevard trees
downtown. Thank you Meryl! She suggested that we take off the lower bulbs on the red
•
and blue trees to help preserve them from vandalism.
Planters: If you are interested in having one of the cement planters outside of your
business in the spring and have not already signed up for one, let Wendy of Tony know.
You will be responsible for keeping the plants watered and there is a small planting fee to
cover the cost of the plants.
New Business
Downtown Business Listing: Two years ago, Meryl compiled a list of downtown
businesses. It is time to update and fill in the holes on the list. The list included
businesses on Main Street East and West of the Railroad along highway 10 to Hardees,
Railroad Drive and Jackson Ave and adjacent streets. It was discussed that this entire area
comprises the downtown area. We have at times sent minutes and updates to the people
across the tracks but there has always been more input from the businesses on the river
side of highway 10. We will again try to encourage the other areas to become more
involved in activities downtown. We will drop off flyers at all of the downtown area
businesses and ask them for names and addresses of businesses to include in a downtown
directory.
It was also brought up that other individuals, groups and businesses outside the
downtown area have a commitment to "Downtown Elk River" and should be encouraged
to be part of our group.
Roles of Rivers Edge:
1. We are a liaison between the City of Elk River and the downtown business and
property owners.
2. We work to keep downtown looking attractive and inviting to the people who
work and do business here.
3. We help downtown businesses coordinate sales and advertising to bring more
people downtown.
Advertising downtown businesses helps to bring more people into downtown which
increases the visibility of both retail and service businesses. It was agreed that it would
benefit the Rivers Edge Association to use some of our funds to advertise our downtown
in Local and Regional Publications.
Downtown Promotions: Next Y ear we need to coordinate with the Lions and other
groups to encourage people to come downtown after having breakfast with Santa. We
also should try having a day where we can advertise "shopping downtown on your lunch
break" and serve snacks in the stores to entice people to shop downtown Elk River.
The meeting was adjourned at 9AM
Next meeting will be Wednesday January 14, 2004 at Sam at Elk River Chamber of
• Commerce Conference Room.
Rivers Edge Downtown Business Association Minutes
111 January 14, 2004
The meeting was called to order at 8AM at the Elk River Chamber of Commerce Meeting
Room. Attending were Steve King, Kathy McManus,Tony Mikols, Lance Lindberg, Cliff
Lundberg, Marlys Ellingson, Heidi Steinmetz, Jeff Gongoll and Wendy Simenson.
Secretary's Report: The minutes from the last meeting were accepted as written.
Treasurer's Report: The Balance is $2150.12
Old Business
City Update: Heidi Steinmetz stated that the HRA will be scheduling one-on-one
meetings with individual property owners and downtown businesses to discuss impact of
revitalization and parking. Chris Leesburg, an Elk River City Planner, and Jim Prosser, a
representative from Ehlers and Assoc. Project Coordinator for Revitalization, will
represent the HRA.
New issues with negotiations with MetroPlains. The HRA is looking at including in the
development agreement financial consequences if both stages of development(Jackson
Square and the Bluff Block) are not completed. Possible consequences could be that the
Jackson Square Property would revert back to the city and that there would be a loss of
• TIF Money. MetroPlains is looking for short term financing from the City to help them
purchase the properties on the Bluff Block. The City is evaluating the financial risk of
this financing. MetroPlains needs to have 60% of residential property in the new
development on the Bluff Block presold.
In order for the Development to be eligible for tax credits from the Housing Finance
Agency, the percentage of new affordable housing available downtown has to be greater
than the existing affordable housing downtown.
The City has been looking at safe pedestrian crossing of Hwy 10. The City looked at the
costs and feasibility of putting a pedestrian bridge over the highway for pedestrian traffic.
The estimated cost would be over$700,000.00
Rivers Edge's Goals for Downtown Revitalization: Our goal remains to enhance the
attractiveness and viability of downtown and to develop the area along the River to
maximize its visibility and use by the Community.
Fishing Pier: Tony is talking to Scott Schroeder from the DNR to discuss the
reactivation of the application for a fishing pier on the river.
Updating Downtown Directory: A form will be going out with the February Agenda so
that we can make sure we have current information on downtown businesses. Being able
to e-mail and fax information makes it much easier for us to be able to send out
•
information about what's happening downtown and also saves us mailing expenses.
Please take a moment to fill out the form and send the information back.
• New Business
Marketing Downtown Elk River:
Marlys brought in a copy of the Elk River Star News Business Almanac. We discussed
putting in a Downtown Rivers Edge Page. Tony is going to work with her to see if we
can do a full page article and then have small ads from downtown businesses to share the
cost. February 3, 2004 is the deadline.
2004 Promotions:
We need to be working on"Events"to bring people downtown. This is the off year for
Art Soup. If you remember events that you enjoyed participating in here in Elk River or
elsewhere across the country,please share them with us.
The meeting was adjourned at 9AM
Next meeting will be Wednesday January 14, 2004 at 8am at Elk River Chamber of
Commerce Conference Room.
S
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13065 Orono Parkway
Elk River,MN 55330
February 26, 2004
Mr. Richard Hinrichs
Garage-Toys.com
641 Main Street, Suite#2
Elk River, MN 55330
Dear Mr. Hinrichs,
I am responding to your request regarding an update on the status of the potential development
being discussed in the downtown area. We work hard to keep the public informed of the matter
as shown in the material posted on the City's website.
As you know, the City of Elk River HRA has been in the process of considering various different
• projects for downtown Elk River. At this time,there have been no decisions to proceed with any
project that would impact your property. The City of Elk River has been working with
MetroPlains Development on concepts for what is commonly referred to as the Jackson Block
and the Bluff Block, but at this time there is no developer agreement and no commitment from
the City, the HRA or MetroPlains to commence or complete any project.
Because there has been no decision to proceed with any project, the HRA is not in a position to
comment on whether or not you should purchase, sell, or improve the property. There is nothing
prohibiting you from proceeding at this time as a result of the potential development activity. As
with any other project or potential sale, to the extent that municipal approvals are required, you
will still be required to proceed through the nolinal permitting process.
Please call me at (763) 635-1041 with any questions.
Sincerely,
7
Catherine Mehelich
HRA Executive Director
CC: Pat Klaers, City Administrator
Stewart Wilson, HRA Chair
•
Phone: 763.635.1000
Fax 763.635.1090
www.ci.elk-rivei:mi.us
Page 1 of 1
Mehelich, Catherine
From: Mehelich, Catherine
Sent: Thursday, February 26, 2004 2:39 PM
To: 'Info @garage-toys.com'
Subject:RE: Property purchase as part of agreement
Richard,
See attached letter of response. Hard copy to follow by mail.
Cathy
Original Message
From: Richard Hinrichs [mailto:Info @garage-toys.com]
Sent: Wednesday, February 25, 2004 4:40 PM
To: cmehelich @ci.elk-river.mn.us
Subject: Property purchase as part of agreement
Cathy I hope this attachment expresses my concern. If you have any questions please get back to me as
soon as possible.
Also did Jim contact you and do you have a written update for me as we spoke about last Monday. I really
need this asap. Thanks
•
Richard Hinrichs
Garage-Toys.com
763-633-1336 Phone
707-248-2608 Fax
Info @garage-toys.com
www.garage-toys.com
641 Main Street
Suite#2
Elk River MN
55330
3/1/2004
Page 1 of 1
Ash Mehelich, Catherine
From: Richard Hinrichs [Info @garage-toys.comj
Sent: Wednesday, February 25, 2004 4:40 PM
To: cmehelich@ci.elk-river.mn.us
Subject: Property purchase as part of agreement
Follow Up Flag: Follow up
Flag Status: Flagged
Cathy I hope this attachment expresses my concern. If you have any questions please get back to me as soon as
possible.
Also did Jim contact you and do you have a written update for me as we spoke about last Monday. I really need
this asap. Thanks
Richard Hinrichs
Garage-Toys.com
763-633-1336 Phone
707-248-2608 Fax
Info @garage-toys.com
www.garage-toys.com
641 Main Street
• Suite#2
Elk River MN
55330
2'2 6'200
To Whom It May Concern:
I am writing this proposal so that the city and others concerned are aware of the situation of the
property at 641 Main Street.
Plat 405 Village of Elk River Sec. 34 T33N R26W E 56.5 Ft of Lot 2 Blk 4
This property has two buildings on it attached by a breezeway. 641 is on Main Street and
has(800 Square feet main 400 square feet storage)I have had more than 15 potential rental
customers express interest until they are aware of the unstable situation in the downtown
development. I have not been able to sign a high quality long-term agreement or purchase.
The other building facing the river houses three companies that I am involved with and has 1000
square feet. My intent was to expand this building to accommodate our growth. We have 5 full
time employees and are growing quickly and are now in need of more storage space within Elk
River.
I have also had 6 parties inquire about selling the property...they also back off when they find out
about the development plan. I but wanted to contact the city/developersbecause it would be in
their best interest to purchase this property.
I am requesting:
• As a tax payer($6200 per year on this property alone)
• From a person that has gone to every meeting in the last two years on this development
and is aware of the negotiations taking place. •
• As a downtown businessman handcuffed in this ongoing negotiations.
• That this property be written into the agreement as the"first property purchased"
as part of the agreement to show a commitment and investment in this
development.
This property could be used as a sales office or this could be the important staging property that is
so badly needed.
Richard Hinrichs
Garage-Toys.com
641 Main Street, Suite#2
Elk River,MN 55330
1-877-812-0272 toll free
info @garage-toys.com
707-248-2608 Fax
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