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01-14-1992 HR MIN • MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL TUESDAY, JANUARY 14, 1992 Members Present: Chairman Dick Hinkle; Commissioners Kropuenske, Schuldt, Duitsman and Toth Members Absent: None Staff Present: Pat Klaers, Executive Director; Bill Rubin, Economic Development Coordinator 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 by Chairman Hinkle at 7:00 p.m. 2. Consider 1/14/92 HRA Agenda COMMISSIONER SCHULDT MOVED TO APPROVE THE 1/14/92 HRA AGENDA. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 5-0. • 3. Consider 12/19/91 HRA Minutes COMMISSIONER DUITSMAN MOVED TO APPROVE THE 12/19/91 HRA MINUTES AS PRESENTED. COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED 5-0. Chairman Hinkle pointed out that the 12/19/91 minutes show that the eligible applicants for the independent elderly complex could be handicapped or disabled individuals and not just individuals over 62 years of age. 4.1. Election of Officers COMMISSIONER DUITSMAN MOVED TO ELECT DICK HINKLE AS CHAIRMAN, DUANE KROPUENSKE AS VICE CHAIRMAN AND LARRY TOTH AS SECRETARY FOR 1992. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.2. Official Newspaper COMMISSIONER KROPUENSKE MOVED TO DESIGNATE THE ELK RIVER STAR NEWS AS THE OFFICIAL NEWSPAPER FOR THE HRA FOR 1992. COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.3. Official Depositories • COMMISSIONER TOTH MOVED TO APPROVE THE BANK OF ELK RIVER AS THE OFFICIAL DEPOSITORY FOR THE HRA. Commissioner Toth withdrew his motion. Housing and Redevelopment Authority Page 2 January 14, 1992 Commissioner Kropuenske noted that the City Council approved a list of ten depositories for City funds when it considered official depositories on 1/6/92. Additionally, Commissioner Kropuenske noted that the Economic Development Authority approved the same list of depositories when it considered this issue on 1/13/92. Commissioner Kropuenske recommended that the HRA also designate the same list of ten depositories for City funds. The HRA concurred with this recommendation. The ten depositories used by the City Council and EDA are: 1. The Bank of Elk River 2. First National Bank of Elk River/Bankers Systems Investment Centers 3. Security Financial of Elk River 4. Marquette National Bank of Minneapolis 5. Merrill Lynch 6. Prudential Bache 7. Shearson Lehman Hutton 8. Norwest Bank 9. Dain Bosworth 10. Paine Webber COMMISSIONER TOTH MOVED TO APPROVE THE TEN DEPOSITORIES WHICH ARE USED BY THE CITY COUNCIL AND THE ECONOMIC DEVELOPMENT AUTHORITY AS THE • OFFICIAL DEPOSITORIES FOR HRA FUNDS. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. It was the consensus of the HRA that the City Administrator should continue to serve as the Executive Director. 5. Financial Update The Executive Director reviewed with the HRA a 1/10/92 memo from the Finance Director, Lori Johnson. This memo indicated that no HRA funds were spent in 1991; revenues received in 1991 were approximately $29,500; and the cash balance at the end of 1991 is estimated at $62,800. It was noted that no expenditures in 1991 was consistent with the goals of the HRA as it was desired to accumulate some funds for a larger scale project rather than spending smaller amounts on an annual basis. 6. Update of FHA Project at 4th and Holt Street Economic Development Coordinator, Bill Rubin, reviewed with the HRA his 1/8/92 memo on this issue. It was the Coordinator's understanding that neither of the two sellers would receive extra capital gain benefits in the event "friendly condemnation" was used pursuant to this option discussed at the 12/19/91 HRA meeting. The Developer, Metcalf and Larson, an Attorney group from Monticello, had met with Guardian Angels Foundation to determine the Foundation's interest in jointly developing • the apartment project under a nonprofit status. Funds are available immediately for nonprofit applications. It was also noted that Mr. Larson has received a letter from the FHA which more clearly identifies Housing and Redevelopment Authority Page 3 January 14, 1992 • possible funding for the project, but funding would not occur until after the purchase agreements on the properties expire. Dick Hinkle provided a general update on the position of the Guardian Angels Foundation as it relates to this project. It was also noted that there are approximately 139 individuals on the waiting list for the Guardian Angels Foundation. The HRA would prefer to have this project developed by an applicant that is not considered exempt from property taxes. Some nonprofit organizations do not pay real estate taxes. The City would receive a long-term benefit if the project were privately developed. Commissioner Kropuenske suggested that as a last alternative, the HRA consider acquiring one of the two properties if the developer is willing to contribute funds toward the acquisition price. In addition, the HRA may be reluctant to recommend the approval of Tax Increment funds if the apartment project is jointly developed by Metcalf and Larson as a nonprofit group. The HRA continued to express interest in this project and its desire to see the independent living project take place at the proposed redevelopment site. Staff was instructed to keep the communication lines open with Mr. Larson and to advise the HRA of any need for their involvement in the project. It was noted that an HRA meeting can be • held on a relatively short notice basis if necessary to further discuss this issue. 7. Other Business Commissioner Schuldt updated the HRA on the type of housing projects that are owned and managed by the St. Cloud HRA. It was also noted that the Washington County HRA is actively involved in housing projects. 8. Staff Updates There was no staff update presented at this time. 9. Adjournment There being no further business, COMMISSIONER TOTH MOVED TO ADJOURN THE HRA MEETING. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River Housing and Redevelopment Authority was adjourned at approximately 7:50 p.m. Respectfully submitted, Vp Patrick D. Klaers Executive Director