08-26-2002 HR MIN MEETING OF THE ELK RIVER
• HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 26, 2002
Members Present: Chair Toth, Commissioners Thompson,Lieser,Motin and Wilson
City Council Present: Mayor Klinzing,Councilmember Kuester,Dietz,and Tveite
Staff Present: Catherine Mehelich,Executive Director;Economic Development Assistant
Heidi Hall, City Administrator Pat Klaers, and City Clerk Sandra Peine
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 August 26. 2002 HRA Agenda
Commissioner Motin added agenda item 8.2—Building Availability
COMMISSIONER THOMPSON MOVED TO APPROVE THE AUGUST 26,2002,
HRA AGENDA AS AMENDED. COMMISSIONER WILSON SECONDED THE '
MOTION. THE MOTION CARRIED 5-0.
3. Consider Consent Agenda
COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT AGENDA
AS FOLLOWS:
3.1. JULY 29,2002,HRA MINUTES
3.2. CHECK REGISTER
3.3. REVENUE/EXPENDITURE REPORT
3.4. BALANCE SHEET
COMMISSIONER WILSON SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
4. Open Mike
There was no one present for Open Mike.
5. Comprehensive Plan
Commissioner Thompson gave an update on the July 24th comprehensive plan meeting.He
indicated that the committee went over the framework of the comp plan,which included
vision,principles,plans,policy and action. He further noted that the majority of the meeting
• was spent on key trends in Elk River.
Housing and Redevelopment Authority Minutes Page 2
August 26,2002
6. Sherburne County Habitat for Humanity Board Update—Commissioner Lieser,Board
Member
Commissioner Lieser stated that there are currently 9 members on the Sherburne County
Habitat for Humanity Board. Commissioner Lieser indicated that the house that is being
built is close to becoming livable. She further indicated that the board is looking for
volunteers to assist in building the house. She indicated that the Sherburne County Habitat
for Humanity is listed with Bridge Volunteer.
7. Consider Year 2003 Budget&Resolution Regarding HRA Levy
Catherine Mehelich reviewed the proposed HRA budget for 2003. Catherine noted that the
total proposed HRA expenditures for 2003 are $133,000 and the total HRA proposed
revenues are$143,500.
COMMISSIONER MOTIN MOVED TO ADOPT RESOLUTION 02-01
ESTABLISHING THE TAX LEVY FOR THE ELK RIVER HOUSING AND
REDEVELOPMENT AUTHORITY FOR COLLECTION IN 2003.
COMMISSIONER WILSON SECONDED THE MOTION.THE MOTION
CARRIED 5-0.
COMMISSIONER MOTIN MOVED TO APPROVE THE 2003 BUDGET.
COMMISSIONER WILSON SECONDED THE MOTION.THE MOTION
CARRIED 5-0.
• 8. Downtown Revitalization Project
8.1. Consider Selection of a Developer for Preliminary Development Agreement
Catherine Mehelich indicated that the HRA received five proposals in response to the
request for proposals for the Downtown Revitalization Project. She noted that the HRA and
City Council has completed an interview of the three selected finalist developers which
included TOLD Development,MetroPlains Development,and Best&Hempel.
Catherine indicated that staff is requesting the HRA to select a developer to enter into a
preliminary development agreement.She indicated that the draft agreement would be
presented to the HRA for consideration at its meeting in September. She noted that the
Council will be requested to ratify the HRA's decision on the developer following the HRA
meeting.
Pat Klaers, City Administrator,reviewed with the board the memo from Ehlers&Associates
regarding what happens after a developer is selected. He noted some of the key points of the
preliminary development agreement include obtaining a deposit to cover some of the city
out-of-pocket expenses,and identifying and addressing issues that must be dealt with prior
to a final developers agreement. Pat Klaers stated that according to Ehlers, the preliminary
development activities will take from six to twelve months. Mr. Klaers reviewed the activities
expected to take place during the preliminary development agreement phase. Some of the
typical predevelopment agreement activities include a review of the site plan, a financial
analysis of the proposal,a review of the land acquisition status, and an analysis of the
environmental issues associated with the development concept.
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Housing and Redevelopment Authority Minutes Page 3
August 26,2002
Jim Prosser,Ehlers and Associates spoke about the process of refining the development
• through public feedback and interaction with staff.
Chair Toth stated that all the developers that were interviewed are qualified to do a project
and that he is open to which developer is selected but that at this time he prefers Best and
Hempel's plan. He stated that although MetroPlains has the edge on experience, he would
not hold the lack of experience against Best and Hempel.
Commissioner Thompson indicated that he prefers MetroPlains. He stated that he liked the
way they talked about combining and evaluating what is currently downtown and making use
of the existing downtown area along with the new components. Commissioner Thompson
indicated that it is important to keep the integrity of the downtown as the City is trying to
rejuvenate the downtown rather than rebuild the entire area.
Commissioner Lieser stated that she is leaning toward MetroPlains but has a concern
regarding the fact that they are looking for public money.The City Administrator indicated
that all of the developers would be looking for assistance in the way of tax increment
financing which is public money. Commissioner Lieser indicated that the River's Edge group
interviewed both Best and Hempel and MetroPlains and chose MetroPlains. Commissioner
Lieser indicated that she likes the fact that MetroPlains speaks about historic Elk River and it
is important to preserve what is currently there. She further stated that she liked the fact that
MetroPlains also talked about mixed income housing.
Commissioner Wilson indicated that the people in the Rivers Edge group would be most
personally effected by the downtown development. He indicated that the River's Edge
• endorsement of Metro Plains is the main reason he will be voting in favor of MetroPlains.
He indicated that it is important to respect the downtown business and property owners'
recommendation.
Chair Toth indicated that there has been a petition received from certain members of River's
Edge in favor of MetroPlains.He questioned how many members were in the River's Edge
group.
Wendy Simenson,Kemper Drug representing River's Edge indicated that there are about 35
members of the River's Edge group.Commissioner Toth questioned why all members of the
River's Edge Group did not sign the petition.Wendy Simenson indicated that some of the
people did not feel they had enough information to sign the petition.
Commissioner Motin indicated that the proposal from MetroPlains does not address the
issue of opening up the river. Commissioner Morn indicated that Best and Hempel is willing
to take on a broader project and deal with the impact of having some of the downtown area
being redeveloped. Commissioner Motin indicated that he recommends Best and Hempel as
the developer.
Chair Toth indicated that he agrees with Commissioner Motin about the need for riverfront
utilization. Chair Toth reiterated that the decision should not be based on lack of experience.
Larry Olson of MetroPlains Development indicated that they are aware that utilization of the
riverfront is one of the objectives of the City and that they would make it part of the
development process.
Housing and Redevelopment Authority Minutes Page 4
August 26,2002
John Hempel of Best and Hempel indicated that they have addressed the riverfront and will
illbe addressing the financial impact of the riverfront. He indicated that the key piece to the
project was how to impact downtown and still impact the river.
COUNCILMEMBER THOMPSON MOVED TO SELECT METROPLAINS
DEVELOPMENT TO ENTER INTO A PRELIMINARY DEVELOPMENT
AGREEMENT FOR THE DOWNTOWN REVITALIZATION PROJECT.
COMMISSIONER WILSON SECONDED THE MOTION.THE MOTION
CARRIED 3-2. COMMISSIONERS MOTIN AND LIESER VOTING AGAINST
THE MOTION.
8.2. Building Availability
Commissioner Motin indicated that he is a personal representative on an estate that has a
house for sale on Quinn Avenue off of Highway 10. He questioned whether the HRA is
interested in looking at the property before it is sold to a developer. Discussion was held
about the possibility of purchasing the house for affordable housing or for Habitat for
Humanity.
It was the consensus of the HRA to have the Planning Department review the site and
report back to the HRA. Chair Toth requested staff to provide information for the HRA
statutory powers of the HRA regarding housing.
Commissioner Wilson indicated that the community is beginning to look to the HRA in
• regard to housing issues and stated that the HRA should move in the direction of looking at
housing issues and solutions.
9. Adjournment
There being no other business, COMMISSIONER THOMPSON MOVED TO
ADJOURN THE MEETING. COMMISSIONER WILSON SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:22 p.m.
0.....„ de cam+• Pa4...e.
Sandra Peine
City Clerk
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