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06-27-2001 HR MIN MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JUNE 27, 2001 Members Present: Commissioners Toth,Thompson,Motin and Wilson Staff Present: Executive Director Catherine Mehelich, City Administrator Pat Klaers 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment Authority was called to order at 5:00 p.m. by Chair Toth. 2. Consider June 27.2001 HRA Agenda COMMISSIONER MOTIN MOVED TO APPROVE THE JUNE 27,2001,HRA AGENDA AS PRESENTED. COMMISSIONER WILSON SECONDED THE MOTION. THE MOTION CARRIED 3-0. 3. Consider Consent Agenda • COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. APRIL 23,2001, HRA MINUTES—APPROVED 3.2. CHECK REGISTER—APPROVED 3.3. REVENUE/EXPENDITURE REPORT—APPROVED 3.4. BALANCE SHEET—APPROVED COMMISSIONER WILSON SECONDED THE MOTION. THE MOTION CARRIED 3-0. 4. Open Mike There was no one present for open mike. 5. Downtown Sidewalk Project Update Director of Economic Development Catherine Mehelich distributed a memo by City Engineer Terry Maurer, outlining the sidewalk project. She stated that the original bid for the sidewalk replacement project was $209,943.80, and with the extra cost of replacing the concrete curb and gutter the final cost of the project came in at$246,664.96. Ms. Mehelich noted that Elk River Municipal Utilities is responsible for another$23,279 for utility work. She stated that the project overhead is estimated to come in at$50,000.As a result,the beautification elements were reduced to$7,000 to keep the total project at the$280,000 • original estimate. • Ms. Mehelich stated that positive comments were received from members of the River's Edge Downtown Association regarding the sidewalk project. 6. Downtown Redevelopment Plan Update Director of Economic Development Catherine Mehelich stated that the visioning phase of the downtown redevelopment plan has been completed with the two joint meetings with the Planning Commission and River's Edge. She discussed the priority guiding principles that were determined from the group exercise: • Utilize the River for Public/Private Use • Creating a Pedestrian Friendly Downtown • Locating a Traffic Generator Downtown • Increasing Awareness of the Downtown • Strengthening the Gateways to the Core CBD • New Construction that Compliments Traditional Design Elements Ms. Mehelich stated that the priority projects identified by the group include: • Redevelop the Star News Building • Implement Guidelines for Rehabilitation and New Construction • Develop the River Plaza—Public Park/Open Space • Annual Events and Activities • Public Walk/Bike Trail Along River • • Redevelop Boelter's Area • Attract Hotel,Bed&Breakfast,Restaurant • Redevelop Post Office Area • Complete a Historical Context Study She stated that staff's next step is drafting an implementation plan based on these priorities unless otherwise directed. Ms.Mehelich stated that for the most part the two groups (Planning/HRA and River's Edge)were similar in ranking the priority lists but noted there were some differences in the order between them such as strengthening core CBD,historical context study, and redeveloping the Hunts Feed area. Commissioner Motin stated that he prefers the priorities developed by Planning/HRA but also felt that the HRA should take into consideration the input of people who attended the meetings. He stated that some of the River's Edge ideas are incorporated in the priorities project list. Commissioner Wilson and Chair Toth agreed and directed staff to use the priority lists identified by the HRA and Planning Commission for the purpose of developing the implementation plan. 7. Consider Downtown Riverfront Redevelopment Concept Director of Economic Development Catherine Mehelich stated that developers Best and • Hempel and Dynamics Design were invited to submit a downtown redevelopment concept plan for the HRA's discussion of downtown redevelopment possibilities.Dynamics Design • decided not to submit a plan at this time. She introduced Jon Hempel of Best&Hempel, to the I-IRA. Mr. Hempel introduced the team,which includes Kraus-Anderson Construction, Hoisington-Koegler Group,Inc., and Hagen, Christensen and MclLwain Architects. He stated that his firm would like more input from the HRA on their preliminary development concept and what the HRA's role in the redevelopment project might be. Daryl Thompson arrived at 5:30 p.m. Tim MclLwain with HCM Architect presented the preliminary redevelopment concept. He stated that the project is mixed-use with a blend of residential, office,and retail spaces. Three three-story buildings were proposed which would generally include retail on the first level and residential on the second and third levels.A fourth building was 3-level townhomes. He stated that this concept plan demonstrates the types of uses that can be put in a downtown area in response to the demand indicated in the HRA's recent Maxfield Research Market Study. Mr. MclLwain stated that there would be public access to a river walk and bike path on the south of the project along the river. Ms. Mehelich asked the proposed process the team might take to start this type of project and whether it would be done in phases or all at once. Mr. Hempel stated that the developer would work with the HRA and the community to determine how the project would progress and discuss financing needs. Chair Toth asked if the developer had contacted any of the landowners about acquiring • some of the properties and also stated a concern about adequate parking. Mr. Hempel stated they have had preliminary contact with two landowners at this point. Commissioner Wilson stated that residential use does add extra attraction to the downtown area but he is concerned about there being too much residential use and questioned why there seem to be a lot of housing in this concept plan and little service related uses.He stated concerns about having some type of draw for people to visit the downtown area and if the area is too residential people may not visit. Mr. MclLwain stated that based on the research study by Maxfield Research Group the market demand within the next five to ten years projected a greater demand for housing and a lesser demand for retail in the entire downtown area. He stated that a mixed-use development is a big draw for people especially with things such as the river walkway and economically the downtown can only support a limited amount of retail/office. Commissioner Motin asked to what extent the buildings would get pushed away from the river to accomplish attracting usage of the river and he questioned the parking lot on the concept plan. He stated that one of his concerns is having ample parking. Mr. MclLwain stated that there is a need for parking and that in the concept plan there is an underground parking facility and some additional parking along the river. The townhomes and condominiums would have enough parking underneath them for one stall per unit. Commissioner Motin questioned if any existing structures lent themselves to the development concept. Mr. Hempel stated they would probably not since it creates a • challenge to work around. • Ms. Mehelich asked what the proposed HRA role would be in the project. Mr. Hempel stated that it would be on an as needed basis and they would know more after meeting with landowners if site assembly and what financing assistance would be needed. Ms. Mehelich questioned how much space would be needed to begin an initial phase of a project. Mr. Hempel stated they would probably start east including room for buildings "D" and"C"indicated on the concept drawing,although exact square footage had not been calculated yet. The HRA liked the concept of mixed uses in the downtown redevelopment project. Ms. Mehelich stated that the next steps would include: • Direct Developer to Prepare a Market/Financial Feasibility Report • Evaluate Ability to Establish a TIF Redevelopment District and how Much HRA is Willing to Participate Chair Toth questioned the costs of the downtown redevelopment project and Mr. Hempel stated that his company wasn't asked to provide cost estimates at this time and the cost would vary depending on how big of a redevelopment project the city decided to complete. Commissioner Motin stated that prior to asking for costs the developer needs further direction from the city as to what buildings must be kept and which might be expendable or if the historical context study must be completed. Commissioner Thompson stated that he would like to see some cost estimates for a project, 1111 questioned whether Council or HRA would be contributing any funds,and asked about a timeline of starting and completing such a project. Mr. Hempel stated that their timing is flexible and depends on the market and financial feasibility for the project. HRA Commissioners requested to see project costs and feasibility of the project. Ms. Mehelich distributed a memo from Steve Rohlf,Building and Zoning Administrator, outlining the recommendations for completing a historical context study prior to redevelopment. She stated that a historical context study could take about six months to complete and cost around$10,000-12,000,which is in the proposed 2002 budget. She stated that there is a grant available for half the cost of the historical context study. Ms.Mehelich stated that staff has included the cost of the historical context study in the proposed 2002 budget which the HRA will review in August. Commissioner Thompson questioned if the Council or EDA could also contribute funds to pay for the study. City Administrator Pat Klaers stated that this is a redevelopment project and funds would be out of the HRA budget. Commissioner Motin stated that he doesn't think this project should be held up for the historical study when nothing of historical significance has been found at this point. He felt that if a building of any historical value were in the downtown area the city would know about its historical significance by now. • • Commissioner Thompson stated that the city should move forward on the historical study. He stated people are going to get upset about tearing down the downtown buildings whether or not they have historical significance. The HRA Commissioners directed Steve Rohlf,Building and Zoning Administrator,to submit an application for the historical context study grant for completion as soon as possible. 8. Other Business Chair Toth stated that Jean Lieser is interested in the vacant position on the HRA and Mayor will be making her appointment to the HRA by the next meeting on July 23,2001. 9. Adjournment There being no other business, COMMISSIONER MOTIN MOVED TO ADJOURN THE MEETING. COMMISSIONER WILSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:15 p.m. i UJ2G.A�1�/ed Catherine Mehelich • Economic Development Director •