10-27-2003 HR MIN MEETING OF THE ELK RIVER
• HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT ELK RIVER SENIOR HIGH SCHOOL
LITTLE THEATER
MONDAY, OCTOBER 27, 2003
Members Present: Chair Toth,Commissioners Lieser,Motin and Thompson
Members Absent: Commissioner Wilson
Staff Present: City Administrator Pat Klaers,Assistant Director of Economic
Development Heidi Steinmetz,Recording Secretary Debbie Huebner
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 October 27,2003 HRA Agenda
COMMISSIONER MOTIN MOVED TO APPROVE THE SEPTEMBER 22,2003,
HRA AGENDA WITH THE FOLLOWING ADDITION:
ITEM 4.1.-CHAIR TOTH ITEM
• COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
3. Consider Consent Agenda
COMMISSIONER LIESER MOVED TO APPROVE THE CONSENT AGENDA
AS FOLLOWS:
1. SEPTEMBER 22,2003 HRA MINUTES
2. CHECK REGISTER
3. REVENUE/EXPENDITURE SHEET
4. BALANCE SHEET
COMMISSIONER THOMPSON SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
4. Open Mike
There was no one present for Open Mike.
4.1. Chair Toth Item
Chair Toth informed the Commission that Sharon Kampa of Northwest Suburban Builders
• Association has received inquiries from Tyler Wosley of Stack Building Supply regarding
rehabilitation programs and sites available in the City of Elk River. The Commission
directed staff to contact Sharon Kampa in order to provide information to Mr.Wosley.
HRA Minutes Page 2
October 27,2003
• 5. Housing Work Plan—Follow Up to Housing Stock Inventory/Analysis
Assistant Director of Economic Development Heidi Steinmetz noted that the HRA
accepted a Housing Work Plan in March 2003. As part of this process, a housing stock
inventory/analysis was presented by the Planning Department in September. By the HRA's
direction,a survey was sent to Elk River manufacturers regarding housing availability and
affordability issues. The results of the survey will be presented at the November HRA
meeting.
Commissioner Motin suggested looking at other areas that may be blighted or poorly utilized
for possible rezoning or rehabilitation for additional housing opportunities.
Chair Toth stated that Suburban Northwest Builders Association would have been interested
in the housing stock presentation. Ms.Steinmetz stated that staff could provide the
information to them.
Commissioner Motin stated that he felt that commercial businesses should be surveyed as
well. The Commission directed staff to send the survey to approximately 50 businesses,
which should include a range of sizes of businesses. Commissioner Motin asked that the
survey be more specific regarding where employees live/commute time.
Ms.Steinmetz stated that a survey to commercial businesses will be sent out as soon as
possible and staff will try to provide those results at November meeting also.
6. Downtown Revitalization Project Update
Ms. Steinmetz introduced LaVerne Hanson of Metro Plains. Mr.Hanson stated that Metro
Plains is requesting that the HRA continue to work with MetroPlains Development under
the spirit of the Preliminary Redevelopment Agreement,but now including Jackson Block,
for a period up to January 30,2004.
COMMISSIONER THOMPSON MOVED TO APPROVE AN EXTENSION OF
THE PRELIMINARY DEVELOPMENT AGREEMENT TO JANUARY 30,2004.
COMMISSIONER LIESER SECONDED THE MOTION.THE MOTION
CARRIED 4-0.
City Administrator Pat Klaers noted that there will be contingencies in the Development
Agreement whether the Small Cities Development Program(SCDP) grant is approved or
not. Mr.Hanson stated that they are working with the City's Attorney Peter Beck and Bond
Consultant Jim O'Meara on the Jackson Block financing and title issues. Commissioner
Motin asked that MetroPlains move as quickly as possible to resolve the outstanding issues.
Ms. Steinmetz noted that the Minnesota Housing Finance Agency(MHFA) financing
application was approved. The City's SCDP application will be submitted to Minnesota
Department of Employment and Economic Development(DEED) at the end of October
and the grant award will be announced in early March 2004.
Ms. Steinmetz stated that staff recently hosted a group of 25 St.Cloud State University
students from a Downtown Development class. Students started with a field trip to
downtown Elk River and participated in a panel discussion with representatives from the
IHRA Minutes Page 3
October 27,2003
. River's Edge group,MetroPlains,the Heritage Preservation Commission,and city staff. The
students commented on their opinions and observations of downtown Elk River'strengths
and weaknesses. Staff will provide this comments to the Commissioners in the November
packet.
Approximately 25 people attended an open house meeting regarding commercial/retail
leasing opportunities in the new proposed project which was recently hosted by MetroPlains
and Brookstone,Inc.
Keith Holme, Elk River downtown business owner,asked for clarification regarding
how MetroPlains can continue to work on the project without a Development Agreement.
Mr.Hanson responded.
Chair Toth reviewed the history of the downtown revitalization project. He stated that
MetroPlains was chosen for the project at the request of the business owners. A petition has
been received from people opposed to the Jackson Block portion of the project. He stated
that the Commission has to view the project as an overall benefit to the City as a whole. He
stated that it has been a long process to get to this point and that the Commission and staff
have been working very hard to meet the wishes of the downtown business owners. He
stated that he feels the parking issues can be worked out.
Mr.Holme stated that the River's Edge Group approved the Bluff Block proposal,but not
the Jackson Block. Chair Toth stated that the Bluff Block would not work without the
Jackson Block component.
S Mr.Holme expressed his concerns regarding the impact of the parking on the downtown
business owners. Ms.Steinmetz stated that parking plans would be addressed as part of the
Development Agreement.
Mr.Holme stated that the property owners in the Bluff Block location are not aware that
condemnation is being discussed.
Chair Toth stated that the Commission has an obligation to ensure that issues such as
parking and condemnation are addressed in the Development Agreement.
Rob VanValkenberg,downtown business owner,stated that when he sold the Cinema
building to Chuck Christian a year ago,the Jackson Block proposal was not in the project.
He expressed concerns regarding parking for the business owners in the Cinema building.
Marcy VanValkenberg, Elk River Travel,stated that she felt that Elk River residents
should be allowed to vote whether or not they are in favor of the project.
Chair Toth stated that city staff continues to provide information at the Downtown River's
Edge meetings,but that the business owners do not have a clear understanding of what is
happening because they are not attending the meetings.
Chair Toth stated that Otsego continues to grow and provide competition for the City of
Elk River. He stated that he feels competition brings new business and increases the
potential for helping existing businesses.
I-IRA Minutes Page 4
October 27,2003
S Mr.Holme stated that the small businesses proposed for the project would eat up the
parking. He stated that the parking across Highway 10 is dangerous and employees at the
bank refuse to park there due to safety concerns.
Commissioner Motin stated that the Commission has no intention of hurting the existing
downtown businesses. He stated that employees may not be able to park in front of the
building they work in,but parking will be available for customers. Commissioner Motin
explained the proposal to close King Avenue and remove the existing Municipal Utilities
building would replace the parking that is lost in the Jackson Block Development.
Commissioner Thompson stated that the City needs to talk with Mn/DOT regarding
providing a safe pedestrian crossing at Highway 10.
City Administrator Pat Klaers stated that the City has spoken with Mn/DOT several times
regarding the crossing and that there are many issues with a pedestrian overpass. He noted
that an overpass would likely have to have steps and would not meet ADA requirements.
There also is the issue of snow and ice in the winter. A covered overpass would create other
problems such as security. Mr.Klaers stated that a key issue is enforcement of traffic laws to
prohibit drivers from endangering pedestrians. Commissioner Thompson concurred that
enforcement needs to be improved.
Mr.Holmes stated that he does not see how enforcement will work,since there is no room
for law enforcement to pull a vehicle over on Highway 10 without endangering lives. He
stated that they have been told that cameras would not work to ticket drivers.
• Ms.Steinmetz stated that these parking and highway crossing issues were discussed at the
August HRA meeting and that the information is available for those wishing to review it.
Chuck Christian,downtown business owner,stated that he did not understand how
existing businesses would be able to operate with only 9 parking spaces left in the Jackson
Square area.
Chair Toth stated that the parking issues must be addressed as part of the process.
7. Adjournment
There being no other business,COMMISSIONER THOMPSON MOVED TO
ADJOURN THE MEETING. COMMISSIONER LIESER SECONDED THE
MOTION. THE MOTION CARRIED 4-0.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:10 p.m.
Respectfully submitted,
Debbie Huebner
Recording Secretary