07-29-2002 HR MIN SPECIAL MEETING OF THE ELK RIVER
• HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 29, 2002
Members Present: Chair Toth, Commissioners Motin,Thompson and Wilson
Members Absent: Commissioner Lieser
Councilmembers Present: Mayor Klinzing, Councilmembers Dietz,Tveite, Motin and
Kuester
Staff Present: Catherine Mehelich-Executive Director,Heidi Hall-Economic
Development Assistant,Michele McPherson -Director of
Planning,Chris Leeseberg-Planner and Steve Rohlf-Building&
Zoning Administrator
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 July 29, 2002 HRA Agenda
• COMMISSIONER MOTIN MOVED TO APPROVE THE JULY 29,2002, HRA
AGENDA AS PRESENTED. COMMISSIONER THOMPSON SECONDED
THE MOTION. THE MOTION CARRIED 4-0.
3. Consider Consent Agenda
COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT AGENDA
AS FOLLOWS:
3.1. JUNE 24,2002 HRA MINUTES
3.2. CHECK REGISTER
3.3. REVENUE/EXPENDITURE REPORT
3.4. BALANCE SHEET
COMMISSIONER WILSON SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
4. Open Mike
There was no one present for Open Mike.
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HRA Minutes Page 2
July 29,2002
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5. Housing Rehabilitation Programs
Economic Development Assistant Heidi Hall reported on research completed by staff
regarding other communities'housing rehabilitation programs. Chair Toth expressed interest
in how other communities initiated their programs. Commissioner Motin inquired of the
average net cost of running a program similar to Fridley's Housing Replacement Program,
and expressed concern that the HRA might have problems funding a housing program at
this time.
Director of Planning,Michele McPherson stated she was employed for 12 years by the City
of Fridley. Ms. McPherson explained that a basic analysis of Fridley's housing stock led city
leaders to believe that Fridley was in need of a housing rehabilitation program. Chair Toth
stated that the City of Elk River should not"reinvent the wheel"when initiating a housing
program,rather look to other communities that have existing housing programs.
6. Joint Meeting with the City Council-Affordable Housing Update
Director of Economic Development Catherine Mehelich indicated that the developer who
had proposed the Jackson Ave. apartment project had withdrawn from the project. Ms.
Mehelich reported that staff met with the City's financial advisors,Ehlers and Associates,
regarding potential financing mechanisms for affordable housing projects. Ms. Mehelich
indicated that Ehlers suggested that it might be more workable for the city to consider
• financing options for single-family affordable housing initiatives because of the complexities
and staff time required for multi-family projects. Ehlers also suggested that the City
consider developing a program that would remove substandard homes to be replaced by
new homes.
Ms.Mehelich indicated that staff would be working with the Planning Department to
conduct a detailed analysis of the city's housing stock after the GIS system is up and
running.
• Mayor Klinzing indicated that the housing stock in Elk River appears to be aging and that
some homes appear to be slightly blighted. Mayor Klinzing agreed that the first step in
initiating a housing program is for staff to complete an inventory of Elk River's existing
housing stock.
Ms. Mehelich stated that following the inventory staff will consider specific programs that
may be initiated in the City of Elk River and attach some dollar amounts to those programs
for further discussion by the HRA. Mayor Klinzing mentioned that there are housing
programs that can be utilized by communities without the local government's involvement.
Ms. Mehelich agreed and added that the City of Elk River could be a resource in those
instances.
7. Downtown Revitalization Project
7.1 Consider Acceptance of Context Study
• Building& Zoning Administrator Steve Rohlf indicated that staff is requesting the
HRA and City Council consider acceptance of the study in accordance to revisions
HRA Minutes Page 3
July 29,2002
• made by Carole Zellie of Landscape Research. Mr. Rohlf indicated that Ms. Zellie
completed the study and fulfilled its purpose to provide a framework to evaluate the
historic significance of inventoried properties and the completion of the Phase II
inventory of downtown properties. Mr. Rohlf added that it is the Heritage
Preservation Commission's job to analyze the local significance of buildings located
in Elk River and that the Commission will be providing a recommendation as
outlined in the ordinance.
COMMISSIONER MOTION MOVED TO ACCEPT THE HISTORIC
CONTEXT STUDY AS PRESENTED. COMMISSIONER WILSON
SECONDED THE MOTION. THE MOTION CARRIED 8-0.
7.2 Feedback from July 17, 2002 Public Open House
Catherine Mehelich indicated that approximately 50 people attended the Developer
Open House,which provided the public with the opportunity to meet the three
developers being interviewed by the HRA for the Downtown Revitalization Project.
Ms. Mehelich stated that the public was also able to review the developers concepts,
ask questions of the developers and provide feedback to the HRA and Council
regarding likes,dislikes,and issues of concern. Ms. Mehelich reported that fifteen
public comment forms were completed and submitted to the HRA and Council for
review.
7.3 Developer Interviews
• On June 24,2002 the HRA selected three finalist developers to interview for the
Downtown Revitalization Project. The finalists,TOLD Development Company,
Best and Hempel,and MetroPlains were each allotted 45 minutes to provide the
HRA and Council with a 20-minute presentation and a 25-minute question and
answer session. The HRA and Council provided staff with input on the prepared
questions regarding the developers'experience in financing and designing similar
projects.
Jim Prosser of Ehlers and Associates provided six points for the HRA and Council
to consider when selecting a developer. First, each member of the HRA and
Council should reflect upon what is important to him or herself personally,
regarding the future of the downtown and to select a developer who is able to
achieve those important items. Second,recognize that there is no perfect developer.
Third,remember that any redevelopment activity requires a relationship between the
community and the developer. Fourth, embrace the complexity of redevelopment.
Fifth,work to achieve a consensus between the HRA and Council and sixth,reflect
upon the interviews.
Following the interviews,it was the consensus of the HRA to select a developer for
the Downtown Revitalization Project at its August 26, 2002 regular meeting.
COUNCILMEMBER MOTIN MOVED TO CALL A SPECIAL MEETING
FOR AUGUST 26,2002 AT 5:00 P.M. FOR PURPOSE OF THE CITY
COUNCIL TO ATTEND THE HRA MEETING REGARDING
S SELECTION OF A DEVELOPER. COUNCILMEMBER TVEITE
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
HRA Minutes Page 4
July 29,2002
• 8. Adjournment
There being no other business, COMMISSIONER MOTIN MOVED TO ADJOURN
THE MEETING. COMMISSIONER THOMPSON SECONDED THE
MOTION. THE MOTION CARRIED 4-0.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 8:15 p.m.
Heidi Hall
Economic Development Assistant
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