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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