05-25-1982 HR MIN SPECIAL MINUTES OF A SPECIAL MEETING OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF ELK RIVER
May 25 , 1982
Time & Place - 7 : 30 p . m. at Elk River City Hall
Present - Commissioners Duitsman , Hinkle , Schumacher , Toth and
Tracy
Absent - None
Also Present - Bob Middaugh , Zack Johnson , Glen Ertel , Mel Boyd ,
Mike Rivard and Dick Krier (the last 4 representing Elk River
Redevelopments , Inc . )
Minutes Minutes of the 3/8/82 meeting were approved as
distributed .
Financial Report - A $988 payment to Zack Johnson & Associates ,
Inc . was approved . This payment being the remaining balance due
under the 8/4/81 agreement for downtown redevelopment planning
services .
Elk River Redevelopments , Inc . Proposal - The Chairman introduced
the following individuals representing Elk River Redevelopments ,
Inc .
Glen Ertel - Owner
Mel Boyd - Employee
Mike Rivard - Consultant , Own Account
Dick Krier - Consultant , Westwood Planning and Engineering Co .
These individuals had met with the HRA Financial Advisory Committee
( Don Schumacher, Dick Hinkle , Bob Middaugh and Zack Johnson ) on
April 19 , 1982 as provided under HRA Policies and Procedures
adopted at the July 21 , 1981 HRA meeting . The Committee reviewed
the redevelopment proposal and agreed to bring it to the HRA for
consideration .
The redevelopment proposal dated May 19 , 1982 was presented and
discussed . Essentially , the proposal is to redevelop the present
City Hall building and build another office/retail building on
the East side of the present building . Tax Increment Financing
would be used to provide funds for site acquisition and construction
of a new City Hall . Because of changes in the TIF law effective
July 1 , 1982 , the TIF district has to be certified by June 30 , 1982
in order to qualify as proposed .
Bob Middaugh reported that at a meeting on May 20 , 1982 the City
Council identified three sites for consideration as possible sites
for a new City Hall . Those three are ( 1 ) the "old " county
courthouse site , (2 ) the Johnson property site at Lowell and Main ,
and ( 3 ) a site North of the Cloverleaf building on Jackson .
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The discussion of the proposal included the p p u th following considerations .
1 . Project viability - in terms of location , absorption , impact of
other proposed developments , access , intersection control , etc .
2 . Legislative intent relative to TIF - i . e . the legislature did
not intend that TIF be used for public buildings and made
that intention law effective July 1 , 1982 .
3 . June 30 , 1982 deadline for certification of a TIF district -
limits the time to consider the proposal , arrive at a
redeveloper ' s agreement , secure a site for a new City Hall, etc .
4 . City Council decisions required - new City Hall and relocation
of the street maintenance department require significant
long-term decisions which are difficult in any case , but more
so in light of the time constraint of June 30 , 1982 .
5 . New City Hall site - potentially involves the possibility of
condemnation proceedings .
6 . Impact on other downtown redevelopment projects - i . e . the
HRA plan places priority on central business district sites
and this project would tend to pre-empt other possibilities
downtown .
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7 . Chairman Schumacher presented rough calculations suggesting
that the available TIF reveneues would finance approximately
$100, 000 for site acquisition and construction of a new City
Hall . The developer suggested the amount would be between
$300 , 000 and $400 ,000 , but did not present specific calculations .
The HRA Commissioners also raised the issue of the developer ' s
experience and financial capacity, but did not pursue the subject .
Elk River Redevelopments , Inc . requested designation as the
tentative developer and authorization to proceed with a TIF plan .
No action was taken on the request .
The HRA Commissioners agreed to continue the meeting to Thursday ,
June 10, 1982 with the developer ' s understanding that preliminary
numbers would be prepared on the basis that TIF would be used for
the present City Hall site only , i . e . foregoing the possibility
of using TIF directly to finance a new City Hall . Proceeds from
possible sale of the site to the developer would then be available
to finance a new City Hall .
Downtown Redevelopment Plan
On March 8 , 1982 the HRA adopted the Downtown Redevelopment Plan
411 in draft form for presentation to the City Council and public
hearing . The City Council held the public hearing and formally
adopted the plan on April 5 , 1982 .
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On motion unanimously passed , the HRA adopted the Elk River
Downtown Redevelopment Plan in final form as previously adopted
by the Elk River City Council on April 5 , 1982.
On motion unanimously passed , the HRA authorized the preparation
by Zack Johnson & Associates , Inc . of an additional 10 copies of
the Elk River Downtown Redevelopment Plan . Such copies to be made
available to the public at the approximate reproduction cost of
$20 each .
Next Meeting - Thursday , 6/10/82
Adjournment - 11 : 30 p.m.
Donald A . Schumacher , Chairman