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10-22-2001 HR MIN MEETING OF THE ELK RIVER • HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, OCTOBER 22, 2001 Members Present: Chair Toth, Commissioners Thompson,Lieser, and Motin Members Absent: Commissioner Wilson Staff Present: Catherine Mehelich,Executive Director;Pat K.laers, City Administrator; Terry Maurer, City Engineer; and Sandra Peine, City Clerk Also Present: Mayor Klinzing and Councilmember Kuester 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 10/22/01 HRA Agenda COMMISSIONER THOMPSON MOVED TO APPROVE THE OCTOBER 22, 2001, HRA AGENDA AS PRESENTED. COMMISSIONER MOTIN SECONDED • THE MOTION. THE MOTION CARRIED 4-0. 3. Consider Consent Agenda COMMISSIONER THOMPSON MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. 9/24/01 HRA MINUTES—APPROVED 3.2. CHECK REGISTER—APPROVED 3.3. REVENUE/EXPENDITURE REPORT—ACCEPTED 3.4. BALANCE SHEET —ACCEPTED COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4. Open Mike There was no one present for Open Mike. 5. Downtown Redevelopment Project—Worksession Catherine Mehelich introduced Jim Prosser of Ehlers and Associates. She stated that Jim was present to facilitate the HRA through the planning process for implementing a downtown redevelopment project. • Jim explained that the three areas of the redevelopment plan consist of the northern area (North Highway 10), the western transition area (King Ave to Morton Ave), and the core MBA Minutes Page 2 October 22,2001 central business district (Highway 10 south to River). He noted that the main focus of the redevelopment project would involve the central business district. Jim Prosser reviewed the problem areas that he recognized in the core central business district. • Lacks investment focus • Lacks connection to the rest of the City • Fails to capitoli7e on the riverfront • Needs a transition role from retail core The HRA acknowledged the problem areas described by Mr. Prosser and recognized additional problems. • Lack of parking—perceived or real • Should include a draw such as a children's theater • Vehicle and pedestrian access • The affect of the future Highway 10 interregional corridor • Would like to see service oriented and some residential • If no action is taken, the change that will occur will be negative Jim Prosser reviewed the goals that he has recognized for the core central business district. • • Assure long term viability of downtown • Provide community focal point • Highlight riverfront location • Replace market/economic obsolete buildings • Strengthen commercial climate • Connect to the rest of the community The HRA acknowledged the goals described by Mr. Prosser and recognized additional goals. • Maintain the traditional character of the downtown. • Enhance the "pedestrian friendly" traditional character environment of the downtown • Recognize those buildings that have potential for revitalization • Maintain strong visual public access to the river Jim Prosser stated that in the future staff may be requesting proposals for the development. He suggested that the HRA define the area for redevelopment. The HRA discussed the area located north of the railroad tracks. It was decided that the area is in need of some work, but that the focus should remain on a more concentrated area in order to receive better proposals. The HRA also discussed the area west of the core downtown area. It was the consensus of the HRA that the main area of redevelopment would be the core downtown area, but that the areas west of downtown and north of Highway 10 would be made known to the developers. HRA Minutes Page 3 October 22,2001 Jim Prosser discussed the design guideline concepts that the HRA had created during the redevelopment planning process with staff and following results of the recent Maxfield Research Group market analysis. • Mixed use • Consider historical context study • Gateway orientation • Traditional downtown design • Brick, stucco, stone materials • Increased density • Pedestrian orientation • Strengthen connection to city The HRA concurred with the guidelines with the exception of the Gateway orientation. The HRA concluded that the word"Gateway" should be changed to "Cornerstone."The HRA offered the following suggestions to the design guideline list. • Increase exposure to the riverfront • Visual breaks in the building design Mr. Prosser discussed the"next steps"in the process. • Meet with developers for preliminary concept ideas • • Evaluate historical context study • Prepare concept refinement with the HRA • Prepare communication plan for the public • Prepare RFP materials • Define contextual issues (overpass,riverfront trails, etc.) The HRA discussed the issue of communication. Mayor Klinzing suggested that special interest groups be identified to be informed of and/or be a part of the project. 6. Presentation of City Housing Plan Catherine Mehelich indicated that at the February 2001 HRA meeting the HRA authorized the Central MN Housing Partnership to complete an analysis of the housing market condition of the city. Catherine introduced Lisa Graphenteen of the Central MN Housing Partnership. Lisa Graphenteen presented the results of the housing study. She discussed the following key points of the study: • The City will continue to face strong population and household growth • The largest population growth has occurred in the 25-44 and 5-17 age categories • The median age is 32 years • RENTAL HOUSING— • • Tight market with a low vacancy rate HRA Minutes Page 4 October 22,2001 • • Average cost of 2-bedroom apartment is $670 requiring an average household to earn $12.90 per hour (30% of the household income goes to housing) • The average industrial wage is $11.54 and the average manufacturing wage is $18.35 • HOUSING • Low vacancy rate • Median sales price $160,000 requiring a household to earn over$50,000 annually or$24.00 per hour. Lisa indicated that the study revealed that average wages paid by industries in Sherburne County are not sufficient to afford the median cost of a home in Elk River and some sectors would not be able to afford the average cost of a two-bedroom apartment. Lisa also discussed strategies the city should consider to address the issues discussed. Mayor Klinzing discussed the need for a workforce development housing project and for transitional housing. The Mayor stated that affordable housing is only part of the total housing problem throughout the metropolitan area. Catherine Mehelich indicated that the HRA should think about what type of role the city wants to play in these housing issues. It was the consensus of the HRA to hold a joint meeting with the City Council to discuss these issues. The HRA also suggested that the Planning Commission be invited to attend. 7. Other Business Catherine Mehelich distributed a letter she received from the River's Edge Downtown Business Association thanking the City for the work that was done in the downtown area. 8. Adjournment There being no other business, COMMISSIONER MOTIN MOVED TO ADJOURN THE MEETING. COMMISSIONER LEISER SECONDED THE MOTION. THE MOTION CARRIED 4-0. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:35 p.m. Sandra Peine City Clerk •