7.1 HRSR 08-03-2015 ti Request for Action
River
To Item Number
Housing and Redevelopment Authority 7.1
Agenda Section Meeting Date Prepared by
General Business August 3, 2015 Amanda Othoudt, EDD
Item Description Reviewed by
2016 HRA Budget and Resolution Establishing Cal Portner, City Administrator
HRA Levy Reviewed by
Action Requested
Review and approve the 2016 HRA Budget and attached Resolution establishing the HRA Tax Levy for
collection in year 2016. Following the HRA's action, the City Council must approve and certify the HRA
levy to Sherburne County by September 15,2015.
Background/Discussion
The Economic Development Division consists of two separate budgets including:
• Economic Development Authority
• Housing&Redevelopment Authority
Revenues
The budget proposes a balanced budget of the operating levy at 0.01512%. The state caps an HRA
operating levy at 0.0185%.
Revenues generated from the HRA tax levy for the 2016 budget are estimated based on an estimated
market value of$1,986,191,600 as provided by the Sherburne County Assessor. This will generate
revenue of$300,250 plus an additional$4,500 in interest income.
Expenditures
The proposed 2016 budget was developed with the goals and action steps outlined in the 2017-2020
HRA/EDA Strategic Plan, the Mississippi Connections Downtown Plan, City Vision& Goals, and the
branding implementation plan.
Major initiatives from these documents include:
• Rehabilitating at least 12 properties by utilizing the new HRA Housing Rehabilitation Loan
Program
• Applying to the Small Cities Development Program (SCDP) Grant utilizing$50,000 in grant
leverage funds to rehabilitate other target areas of the city which will be developed through
coordination of the HRA and Central Minnesota Housing Partnership (CMHP)
• Updating the 2012 Market Housing Study
• Develop a Blighted Properties Commercial and Residential program
• Overhaul the EDA website to include an HRA component
� r i ii 1r
NATURE
Major Changes
Direction from the budget workshop included the following changes:
At the July 6, 2015,HRA budget workshop,it was decided to increase the levy from the previous rate
(.01440%) to a balanced rate of(.1512%) to reduce drawing down on the reserves for the 2016 budget
and allow funding new revolving loan programs out of reserves.
Direction from the commission included leaving the$50,000 for the Small Cities Development Program
(SCDP) in the 2016 budget as a placeholder in the event that the SCDP grant is not received in 2015.
Additionally, the commission discussed the overhaul of the EDA website to include an HRA component.
This new component will allow residents and developers to keep updated on upcoming housing
programs,new policies and development projects.
Any non-spent funds remaining at the end of the year stay in the HRA fund for future housing and
redevelopment purposes/projects. If a non-budget item comes up in 2016 we can use the fund balance
and make a budget amendment.
As of July 30,2015, the HRA has a fund balance available for Housing and Redevelopment purposes of
approximately$1 million.
Financial Impact
The expenditure budget is $304,750.
Attachments
• Resolution Establishing the HRA Levy for Collection in Year 2016
• 2016 HRA Goals and Performance Measures (internal document used for budgeting process)
• Proposed 2016 Budget Detail Spreadsheet
• July 6, 2015 HRA Budget Workshop Packet
N:\Departments\Community Development\Economic Development\HRA\Administrative\Agenda\2015\8-3-2015\x7.1 sr HRA budget and
Levy.docx
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Oty of
Elk
River
Resolution I5-0I
A Resolution of the City of Elk River Housing and Redevelopment Authority,
Establishing the Tax Levy for the Elk River Housing and Redevelopment
Authority for the City of Elk River, Minnesota
WHEREAS, Minnesota Statutes, Section 469.033, Subdivision 6,authorizes the Housing
and Redevelopment Authority to levy an amount not to exceed .0185 percent of the
estimated market value within the city to be used for housing and redevelopment purposes;
and,
WHEREAS, the Elk River Housing and Redevelopment Authority anticipates
expenditures in 2016 for various housing and redevelopment activities; and,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River,Minnesota, as follows: The Housing and Redevelopment Authority requests the City
Council of the City of Elk River,levy a tax in the amount of.01512 percent of the estimated
market value of the city for the benefit of the Authority to be used as provided by Minnesota
Statutes.
Passed and adopted this 3rd day of August, 2015.
Stewart Wilson, Chair
ATTEST:
Amanda Othoudt, HRA Executive Director
[ IMF . / r
NATURE
Division Performance Measures & Goals for 2016
Division: Economic Development\H RA
Completed by: Amanda M Othoudt
Date: June 30, 2015
Performance Measure 2014 Actual I 2015 Estimated 2016 Projected
Rehabilitate at least 12 properties 3 6 3
Promote the Elk River HRA Send direct mailings to Target Area Send direct mailing to Target Area
Rehabilitation Program 500 500 estimated 500 estimated
Made application in November 2014 for Anticipate applying for SCDP in Work with CMHP on the SCDP
Apply for the Small Cities Fiscal Year 2015,Application went to the November 2015 for Fiscal Year provided that the application gets
Development Grant 2nd round,got denied. 2016. accepted.
Develop a Blighted Residential
Properties Program 2 4
Commercial/Industrial Properties 1 2
Related Vision Statement
Division Goal Goal/Objective Comments
Promote Small Cities Development Mississippi Connections Priority Projects Central Minnesota Housing Partnership(CMHP)will apply to State SCDP
Program(SCDP)Grant program grant for Target Area income based housing rehabilitation funding.
Promote new Elk River HRA Send direct mailing to Target Area to promote the program.Work with
Rehabilitation Program Mississippi Connections Priority Projects CMHP to send Press Releases about success stories.
Update 2012 Market Housing Study FAST Study Update 2012 Housing study.As the market continues to evolve,the need
to understand gaps in the system is highlighted.
Research First-Time homebuyers Mississippi Connections Priority Projects, Based on phone calls from the public.
program Economic Development Strategic Plan
Work to expand Senior Housing Housing Market Study,Housing Based on phone calls from the public
options Diversification
Downtown Redevelopment Plan Mississippi Connections Priority Projects Next step is to research redeveloping downtown north of Hwy 10.
Update EDA/HRA Website
2016-2017 BUDGET DETAIL SHEET
Dept: Housing&Redevelopment Authority
Acct. Explanation/Detail of Supplies or Services 2013 2014 2015 BUDGET 2016 BUDGET 2017 BUDGET
No. Actual Actual Detail I Total Detail I Total Detail I Total
PERSONAL SERVICES
4101 Regular Pay 40,310 39,023 54,050 56,100 59,550
4103 Part Time Pay 3,209
4104 PERA 2,730 2,647 4,050 4,200 4,450
4105 FICA 2,318 2,265 3,350 3,500 3,700
4107 Medicare 542 530 800 800 850
4108 Insurance 6,047 4,975 6,950 7,250 7,700
4109 Workers Comp 256 209 300 300 300
4110 Re-employment Comp 252
TOTAL PERSONAL SERVICES 52,203 53,110 69,500 72,150 76,550
SUPPLIES
4201 Office Supplies 187
(shared with EDA)
4212 Fuels&Lubes 1,400 1,400 1,400
1,400 1,400 1,400
TOTAL SUPPLIES 187 1,400 1,400 1,400
OTHER SERVICES&CHARGES
4304 Legal Fees 217 7,807 10,000 10,000 10,000
Misc. 10,000 10,000 10,000
4319 Other Professional Services 10,877 7,618 32,450 20,450 20,450
Downtown Plan implementation 20,000 20,000 20,000
Small Cities Development Grant 400 400 400
Solid Waste fee(downtown parking lot) 50 50 50
Housing Study 12,000
4322 Postage 61 6 7,000 7,000 7,000 7,000 7,000 7,000
4331 Travel,Conferences&Schools 4,250 4,500 4,500
Misc.Training(Housing courses-Colleen) 1,500 1,500 1,500
NDC Training(Housing Finance Prof.-Colleen) 1,250 1,250 1,250
NDC Travel 1,500 1,750 1,750
4349 Advertising/Marketing 400 12,500 6,000 6,000
Housing programs-marketing 12,500 150 5,000
Downtown Marketing-brand plan 150 1,000
EDA Website 5,700
4359 Publishing 45 893 5,000 5,000', 5,000
Housing Program(s)Printing 5,000 5,000 5,000
4389 Utilities 600
Water/electric-ERMU 600
4409 Contractual Services 18,763 150,000 150,000,
Grant leverage funds-SCDP 50,000 50,000 50,000
Elk River HRA Rehab Program 100,000 100,000 100,000
TOTAL OTHER SERVICES&CHARGES 11,200 35,487 221,800 202,950 202,950
CAPITAL OUTLAY
4530 Improvement Project Contract
TRANSFERS OUT 26,750 28,250 28,250
4721 General Fund 18,200 22,850 23,250 24,750 24,750
4735 Economic Development Authority(shared expenses) 3,500 3,500 3,500 3,500 3,500
TOTAL HOUSING&REDEVELOPMENT AUTHORITY 85,103 115,134 319,450 304,750 309,150
7/31/2015
iGi of
lk. Request for Action
River
To Item Number
Housing and Redevelopment Authority 7.2
Agenda Section Meeting Date Prepared by
N/A July 6,2015 Amanda Othoudt,FED
Item Description Reviewed by
Discuss 2015 HRA Budget&Budget Goals Cal Portner,City Administrator
Reviewed by
Action Requested
Information presented for discussion only.Action is to be taken at the August 3,2015, HRA meeting.
Background/Discussion
As part of the budget process,a budget workshop is advisable to allow for informal discussions regarding
the goals and objectives,major projects, and other items influencing the HRA budget.
To this end, staff has prepared a draft budget that attempts to address several of the goals outlined in the
strategic plan, downtown plan,the city's vision worksheet,and recent HRA discussion. In order to meet
the requirements of the HRA Bylaws, the HRA must approve the budget at their August 3,2015,regular
meeting and make recommendation to the city Council at the September 7,2015,regular meeting.
As drafted,the proposed 2016 expenditures are$304,750.The 2017 budget is for informational purposes.
The HRA levy options are as follows:
1) Previous rate (.01440%) = tax revenue of$286,000 (this would be if the HRA chose to draw down
reserves for the 2016 budget).
2) Balanced rate (.01512%) = tax revenue of$300,250 (this would be if the HRA did not want to add or
draw against reserves for the 2016 budget).
3) Maximum rate (.01850%) = tax revenue of$367,450 (this would be if the HRA desires to add
additional revenues into the HRA reserves for 2016).
All levy options are applied against the Estimate Market Value obtained from Sherburne County of
$1,986,191,600. In addition to the tax levy we also calculate interest income of$4,500.
Financial Impact
None
Attachments
• HRA 2016 Budget Goals
• 2013-2016 EDA/HRA Strategic Plan
• HRA Budget Worksheet
11MEA11 / 1
Template Updated 4/14 NATURE
Division Performance Measures & Goals for 2016
Division: Economic Development\HRA
Completed by: Amanda M Othoudt
Date: June 30,2015
Performance Measure I 2014 Actual ( 2015 Estimated 2016 Projected
Rehabilitate at least 12 properties 3 6 3
Promote the Elk River HRA Send direct mailings to Target Area Send direct mailing to Target Area
Rehabilitation Program 500 500 estimated 500 estimated
Made application in November 2014 for Anticipate applying for SCDP in Work with CMHP on the SCDP
Apply for the Small Cities Fiscal Year 2015,Application went to the November 2015 for Fiscal Year provided that the application gets
Development Grant 2nd round,got denied. 2016. accepted.
Develop a Blighted Residential
Properties Program 2 4
Commercial/Industrial Properties 1 2
Related Vision Statement
Division Goal Goal/Objective Comments
Promote Small Cities Development Mississippi Connections Priority Projects Central Minnesota Housing Partnership(CMHP)will apply to State SCDP
Program(SCDP)Grant program grant for Target Area income based housing rehabilitation funding.
Promote new Elk River HRA Mississippi Connections Priority Projects Send direct mailing to Target Area to promote the program.Work with
Rehabilitation Program CMHP to send Press Releases about success stories.
Update 2012 Market Housing Study FAST Study Update 2012 Housing study.As the market continues to evolve,the need
to understand gaps in the system is highlighted.
Research First-Time homebuyers Mississippi Connections Priority Projects, Based on phone calls from the public.
program Economic Development Strategic Plan
Work to expand Senior Housing Housing Market Study,Housing Based on phone calls from the public
options Diversification
Downtown Redevelopment Plan Mississippi Connections Priority Projects Next step is to research redeveloping downtown north of Hwy 10.
Update EDA/HRA Website
2013— 2016 EDA/HRA Strategic Plan Final
BUSINESS DEVELOPMENT
Attract new businesses and support existing businesses to increase the city's industrial tax base,
commercial tax base and employment base.
INDUSTRIAL STRATEGIES
➢ Promote available sites,encourage business retention and expansion to grow existing
light industrial base with business recruitment/attraction techniques
> Diversify economic base to include professional services,corporate campuses,energy-
related companies,and technology businesses
➢ Review existing programs,resources,and services and recommend improvements to
increase competitive advantage and support goals
➢ Explore creative economic development collaborations
➢ Utilize Energy City and its tools to recruit new and assist existing businesses
COMMERCIAL STRATEGIES
> Promote available sites,encourage business retention and expansion to grow existing
commercial base with business recruitment/attraction techniques
➢ Diversify economic base to include a wide variety of retail and service industries,as well
as additional fine dining opportunities
➢ Review existing programs,resources,and services and recommend improvements to
increase competitive advantage and support goals
➢ Explore creative economic development collaborations
➢ Enhance commercial district through business recruitment and activities
ACTION STEPS
• Complete minimum of one BRE visit a month with participation from EDA and Council members
(manufacturers and top employers)and distribute Business Finance Toolkit,Available Sites,
Community Profile,Energy City Brochure, Business Recycling Toolkit and other pertinent
information.
• Promote available sites through exhibits at various expos(minimum 2x/yr.)
• Utilize 171st FAST implementation plan to create a marketing piece for Nature's Edge Business
Center and an annual redevelopment action plan to monitor progress of implementation
• Partner with ERMU to identify applicable rebates for available city-owned property
1
Approved EDA January 14,2013, HRA January 7,2013
• Promote applicable incentives through direct mailings(minimum 3x/yr.)
• Promote Elk River to the restaurant industry through website
(www.elkrivermn.gov/restaurants),direct mailings,Constant Contact email blasts and other
marketing venues
• Partner with Elk River Area Chamber of Commerce to coordinate Chamber goals with economic
development goals through various implementation tasks
• Utilizing economic development publications make contact with businesses looking to expand,
relocate,etc.
• Review Micro Loan Program and recommend improvements to increase competitive advantage
and support goals
• Partner with ECC and ERMU to explore a joint incentive to attract energy-related technology
businesses
• Partner with local schools and manufacturers to hold quarterly meetings to encourage students
to explore a career in manufacturing through plant tours,youth apprenticeship programs,
energy city tours and programs,and job shadowing
• Launch Update a powerful website for the Elk River Economic Development Department
• Demonstrate support for existing manufacturers and raise awareness regarding their impact on
the community through various promotional activities and tours during Minnesota
Manufacturers Week
• Identify target industries(e.g.data centers,energy-related companies,fine dining
establishmentscraft brewery,manufacturing and medical device,etc.)and create specific
marketing pieces to identify advantages and programs to assist in business recruitment
• Host quarterly Manufacturers'Connection events with local manufacturers to promote financial
incentives,resources and relevant topics to promote business retention and appreciation
• Build a targeted industry and trade media databases and send press releases 6x per year.
• Produce an energy conservation best-practices brochure to provide to businesses
• Coordinate with Energy City to plan and market energy city events e.g. Energy City Business of
the Year
• Partner with Energy City and the Streets Department and continue toto promote proper
disposal of Fats,Oils and Grease through videos,flyers,emails,social media,and other media
• Host and Promote a quarterly business rountable event with local business leaders and
community stakeholders.
• Partner with the Elk River Area Chamber of Commerce to hold annual event to promote
economic development resources and incentives(Juice Up Your Morning,Chamber luncheon,
Money Breakfast,etc.)
•
2
Approved EDA January 14,2013, HRA January 7,2013
REHABILITATION AND REDEVELOPMENT
Undertake strategies that facilitate rehabilitation and redevelopment of aging commercial,industrial
and residential areas to ensure private reinvestment and sustainability.
COMMERICAL/INDUSTRIAL STRATEGIES
> Maintain a listing of available commercial/industrial sites
> Promote available sites through various marketing initiatives
• Identify and examine potential areas for revitalization
> Review existing programs, resources,and services and recommend improvements to
increase our competitive advantage and support goals
> Enhance downtown commercial district through business recruitment and people-
generating activities
ACTION STEPS
• Update windshield survey quarterly and post on website
• Feature available property in quarterly'Energized by Development'electronic newsletter
• Promote www.elkriversites.com on billboard 1x/yr. (changed quarterly)
• Partner with downtown business association and civic groups to promote existing and explore
new downtown activities(i.e. BNI,Chamber Connections,etc.).
• Partner with Elk River Area Arts Alliance to explore funding concepts for an arts center within
the downtown study area
• Create and distribute a survey to businesses to identify recommended improvements to existing
programs,resources and services,in addition to identifying preferred methods of
communication to improve Elk River business climate
• Identify current property owners'and businesses'interest in redevelopment efforts both north
and south of HWY 10 and in 171st Focused Area Study area
• Create a redevelopment policy regarding capitalizing the HRA development fund and identify
parameters for purchasing parcels
• Create and distribute comprehensive business directory to promote downtown Elk River
• Create aUpdate short videos promoting available sites and applicable initiatives to distribute
through social media outlets,constant contact and website
3
Approved EDA January 14,2013, HRA January 7,2013
RESIDENTIAL STRATEGIES
• Maintain listing of vacant/foreclosed properties
➢ Address housing gaps with Comprehensive Housing Market Study recommendations
• Proactively review neighborhoods annually to ensure all home are properly maintained
through the code enforcement process
➢ Seek and promote available programs to improve existing housing stock and incentivize
homeownership
> Provide educational opportunities regarding foreclosure prevention and housing
assistance programs
ACTION STEPS
• Continue to work with applicable departments and entities to maintain internal foreclosure
tracking spreadsheet
• Distribute MN Home Ownership Center foreclosure prevention,Energy City conservation
brochure,and Elk River Housing Toolkit information to local lenders,realtors,churches, non-
profits,builders,etc. (minimum 4x/yr.)
• Partner with staff to devise a neighborhood inspection plan to ensure all homes are properly
maintained through the code enforcement process
• Utilize housing intern to research programs available to Elk River residents to improve existing
housing stock and incentivize homeownership
• Partner with North Metro Realtors Association to explore the creation of in house housing
programs(down payment assistance,housing rehab,etc.)
• Partner with applicable non-profits(MNHOC,Tri-CAP,etc.)to hold educational events to
promote foreclosure prevention and housing programs(minimum 2x/yr.)
• Identify aContinue to partner with the CMHP housing organization to fund and support a
selective housing removal and rebuilding program
• Host an annual Realtors' Day to educate realtors about the programs,processes and amenities
offered by the city
4
Approved EDA January 14,2013,HRA January 7,2013
COMMUNITY BRAND
Utilize community brand strategies to effect necessary changes to strengthen and enhance community
image
STRATEGIES
> Continue to implement and enhance marketing plan that reflects the Powered by
Nature brand,identifies desired target market(s),and complements other local efforts
to promote the community internally and externally
➢ Maintain existing and build new community support for the Powered by Nature brand
> Establish benchmarks for performance measurement
ACTION STEPS
• Work with area businesses and civic organizations to incorporate brand into their marketing
strategies through presentations(minimum 6x/yr.)
• Create PbN logos for area businesses and civic organizations(minimum 6x/yr.)
• Meet with each city department to ensure all documents(staff reports,applications, business
cards,presentations,letterhead,etc.)adhere to brand guidelines as outlined on SharePoint
• Maintain poweredbynature.blog.com site(minimum 3x/wk.)
• Distribute window clings and larger windows signs of the logo
• Distribute brochures explaining the brand to residents to municipal liquor stores,Guardian
Angels, Pullman Place,Sherburne County,local banks,Chamber of Commerce,local hotels,etc.
• Utilize community brand throughout the new Economic Development and citywide website
• Promote the brand,engage residents,and distribute materials at expos(3x per year)and at
events such as Realtors' Day,Leadership Elk River,and Manufacturers Connection
• Create profiles on first-tier business owners in Synchronist Salesforce—a tracking software used
to record information on local businesses and visits
• Launch an online marketing campaign through pay-per-click and keyword advertising
• Benchmark the impact of the Powered by Nature brand with data from Google Analytics and a
search engine optimization analysis.
• Promote Public Art Installation and research opportunities to expand public art within the city.
5
Approved EDA January 14,2013,HRA January 7,2013
TRANSPORTATION
Advocate and support proactive planning for improvements to the local and area transportation system
in a way that will support existing businesses and complement new economic growth.
STRATEGIES
➢ Advocate regional and local transportation improvements
➢ Encourage transportation improvements as part of redevelopment/development
opportunities
> Support efforts to leverage local funds with state/federal resources
ACTION STEPS(submitted by City Engineer)
• Increase contact with legislators for state highway transportation improvements
• Complete low cost/high benefit enhancements to improve traffic flow through the existing
street intersections
• Advocate for the continued use and expansion of Northstar commuter rail service.
• Continue implementation of transportation improvements as detailed in the 17152 Focused Area
Study
• Assure all proposed development improvements are consistent with our local and regional
transportation plans.
• Leverage State and Federal investment for mobility improvements to TH 169 and TH 10 with the
already spent local dollars for the planning of improvements to these sections.
• Evaluate all available grant opportunities to determine if the local matching amounts are a cost
effective and feasible solution to support our objectives and strategies.
• Promote the Quiet Zone,Northstar Commuter Train and Bike paths.
6
Approved EDA January 14,2013, HRA January 7,2013
2016-2017 BUDGET DETAIL SHEET
Dept: Housing&Redevelopment Authority
Acct. Explanation/Detail of Supplies or Services 2013 2014 2016 BUDGET 2016 BUDGET 2017 BUDGET
No. Actual Actual Detail 1 Total Detail I Total Detail 1 Total
PERSONAL SERVICES
4101 Regular Pay 40,310 39,023 54,050 56,100 59,550
4103 Part Time Pay 3,209
4104 PERA 2,730 2,647 4,050 4,200 4,450
4105 FICA - 2,318 2,265 3,350 3,500 3,700
4107 Medicare 542 530 800 B00 850
4108 Insurance 6,047 4,975 6,950 7,250 7,700
4109 Workers Comp 256 209 300 300 300
4110 Re-employment Comp 252
TOTAL PERSONAL SERVICES 62,203 53,110 69,600 72,160 76,660
SUPPLIES
4201 Office Supplies 187
(shared with EDA)
4212 Fuels&Lubes 1,400 1,400 1,400
1,400 1,400 1,400
TOTAL SUPPLIES 187 1,400 1,400 1,400
OTHER SERVICES&CHARGES
4304 Legal Fees 217 7,807 10,000 10,000 10,000
Misc. 10,000 10,000 10,000
4319 Other Professional Services 10,877 7,618 32,450 20,450 20,450
Downtown Plan implementation 20,000 20,000 20,000
Small Cities Development Grant 400 400 400
Solid Waste fee(downtown parking lot) 50 50 50
Housing Study 12,000
4322 Postage 61 6 7,000 7,000 7,000 7,000 7,000 7,000
4331 Travel,Conferences&Schools 4,250 4,500 4,500
Misc.Training(Housing courses-Colleen) 1,500 1,500 1,500
NDC Training(Housing Finance Prof.-Colleen) 1,250 1,250 1,250
NDC Travel 1,500 1,750 1,750
4349 Advertising/Marketing 400 12,500 6,000 6,000
Housing programs-marketing 12,500 5,000 5,000
Downtown Marketing-brand plan 1,000 1,000
4359 Publishing 45 893 5,000 5,000 5,000
Housing Program(s)Printing 5,000 5,000 5,000
4389 Utilities 600
Water/electric-ERMU 600
4409 Contractual Services 18,763 150,000 150,000 150,000
Grant leverage funds-SCDP 50,000 50,000 50,000
Elk River HRA Rehab Program 100,000 100,000 100,000
TOTAL OTHER SERVICES&CHARGES 11,200 36,487 221,800 202,950 202,960
CAPITAL OUTLAY
4530 Improvement Project Contract
TRANSFERS OUT 26,750 28,250 28,250
4721 General Fund 18,200 22,850 23,250 24,750 24,750
4735 Economic Development Authority(shared expenses) 3,600 3,600 3,500 3,500 3,500
TOTAL HOUSING&REDEVELOPMENT AUTHORITY 85,103 115,134 319,450 304,760 309,150
7/1/2015