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06-05-2003 HR MIN SPECIAL MEETING OF THE ELK RIVER • HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL THURSDAY,JUNE 5, 2003 Members Present: Chi it Toth, Commissioners Thompson,Lieser,Motin and Wilson Staff Present: Executive Director Cathy Mehelich,Economic Development Assistant Heidi Hall,City Administrator Pat Klaers, and Director of Planning Michele McPherson 1. Call Meeting To Order Pursuant to due call and notice thereof, the special meeting of the Elk River Housing and Redevelopment Authority was called to order at 5:00 p.m. by Chair Toth. 2. Draft Comprehensive Plan Review Director of Planning Michele McPherson provided an overview of the Draft Comprehensive Plan and asked that the HRA provide comments which will be forwarded to the Comprehensive Plan Update consultant Rusty Fifield,Hoisington Koegler Group,Inc. (HKGi). Discussion occurred regarding the reasoning for an Urban Reserve area along the eastern boundary of Elk River. Ms.McPherson explained the following reasons why the Comprehensive Plan Update Task Force decided to designate the area as an Urban Reserve: • City staff is working to analyze the capacity of the waste water treatment plant. • An Urban Reserve area would allow a cost effective approach to the potential extension of city services to the area. • The Task Force may wish to reserve plant capacity for commercial and industrial development. • City services are less likely to be extended to a Rural Residential area,which is the current land use of the eastern boundary of Elk River. Commissioner Motin expressed concern that Urban Reserve areas could eventually be rezoned to accommodate leapfrog development. Ms. McPherson stated that if a rezoning request were to happen,city staff should remind policy makers the importance of following the Comprehensive Plan. City Administrator Pat Klaers added that the waste water treatment plant capacity would also need to be evaluated before a rezoning would occur. Commissioner Thompson arrived at 5:14p.m. There was discussion regarding Mixed Use, a new land use included in the Draft Plan. Ms. McPherson explained that Mulvaney Point and Elk River Station are designated as Mixed Use in the Draft Plan. HRA members noted the Draft Land Use Map does not include Elk River Station as Mixed Use. Ms. McPherson stated that the correction would be • made to the map. Special HRA Minutes Page 2 June 5,2003 • Commissioner Motin provided the following comments to Ms. McPherson: • The Urban Reserve Area north of County Road 12 should be left Rural Residential • The Historic Contexts Study should be referenced but not used to guide City Council actions • There is a need for more Highway Business between 165th and 17 Pt along Hwy 10 • The north side of Main Street/north side of 5th Street should be Highway Business ' • Urban Residential should act as a buffer between High Density and Rural Residential areas • It makes sense to have strip malls incorporated into neighborhoods as long as the market has been tested Commissioner Wilson mentioned that he was pleased to see that housing is a large component of the Draft Plan. Commissioner Lieser inquired of the rules for incorporating affordable housing into TIF Districts. Catherine Mehelich explained that a certain percentage of affordable housing must be added to a project based on low to moderate household income guidelines as established by the TIF statute. Ms.McPherson mentioned that the HRA will receive and be able to independently review the second and third drafts of the Comprehensive Plan before it is approved. Commissioner Toth requested that the Regular PIRA Meeting scheduled for June 2314 be rescheduled as a Special HRA Meeting on June 30th due to his inability to attend the June 23rd meeting. COMMISSIONER WILSON MOVED TO CALL A SPECIAL MEETING OF THE HRA FOR JUNE 30TH CONTINGENT UPON SPACE AVAILABILITY AT LIONS PARK CENTER. COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Downtown Revitalization Project: Presentation by MetroPlains Development Jim Prosser of Ehlers &Associates explained that the main challenge faced by MetroPlains since August of 2002 has been high land costs,which has caused financial feasibility issues, thus project delays. Mr. Prosser added that MetroPlains is further along in the process of refining concepts than many cities have been at this stage. Mr. Prosser proceeded to provide the HRA with the next steps of the project: • HRA to consider a concept to present to the public • Staff Project Team to brainstorm options to close the financial gap • HRA and MetroPlains to decide upon Final Development Agreement terms Vern Hanson of MetroPlains,Lonnie Laffen of JLG Architects, and Jim Prosser provided the HRA with a presentation which included an overview of the City's project goals,a • presentation of redevelopment concepts,and an overview of the financial and market feasibility issues regarding the project. Special HRA Minutes Page 3 June 5,2003 • Mr.Hanson's presentation of the redevelopment concepts included the Bluff Block, the Brick Block,and the Jackson Block. Mr.Hanson explained the proposed development for each location: Bluff Block • 10,000 SF commercial on first floor along Main St. • 52 unites of for-sale housing • 70-80 below grading parking stalls for housing and commercial residents • 3-4 stories • Connection to city's riverwalk development Brick Block • 6,000 SF of commercial • 52 units of rental housing • 66 below grade and 54 surface parking stalls • Optional 75 below grade public parking • 3 stories Jackson Block • 10,000 SF commercial on first floor along Jackson St. and at the corner of Jackson and Main • 32 units of rental housing • Up to 66 below grade parking units for housing and commercial, 18 surface units, and 9 additional on-street parking spaces • 3 stories Following the presentation, Chair Toth mentioned that prior to the presentation he had been strongly opposed to the redevelopment of the Jackson Block area but that he now understood why the area is appropriate for redevelopment. Chair Toth asked MetroPlains if they would be responsible to develop the park area next to the Cinema Building. Mr. Hanson stated that MetroPlains would develop a walking path to the rear of their redevelopment area but that the City would be responsible to extend the walking path beyond that area in addition to the park. The HRA posed several questions regarding the management of pedestrian traffic, the transition of existing businesses,parking issues,and visibility issues for the brick block if the Jackson Block area is developed. It was stated that existing business owners have expressed concerns for lost parking if the Jackson Block area is developed. It was stated that most downtown business owners do not have the luxury of a free parking lot near their stores. MetroPlains explained that all Jackson Block parking spaces would be replaced. Regarding visibility issues,it was stated that the visibility of Kemper Drug would be unaffected if the Jackson Block area is developed and that the increase of business due to the development would outweigh the visibility concerns. • Special HRA Minutes Page 4 June 5, 2003 It was the consensus of the HRA that MetroPlains present the Jackson Block/Bluff Block redevelopment concept at a public Open House on June 18th from 6:00-8:00p.m.at Lions Park Center. 4. Adjournment There being no other business, COMMISSIONER MOTIN MOVED TO ADJOURN THE MEETING. COMMISSIONER LIESER SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 7:36 p.m. / 166∎Z 4 Heidi Hall Economic Development Assistant • •