08-25-1992 HR MIN • MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
TUESDAY, AUGUST 25, 1992
Members Present: Chairman, Dick Hinkle; Commissioners Duitsman, Schuldt,
Kropuenske and Toth
Members Absent: None
Staff Present: Pat Klaers, Executive Director; Bill Rubin, Economic
Development Coordinator
Also Present: Brad Larson, Elk Terrace Ltd. Partnership
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 8/25/92 HRA Agenda
• COMMISSIONER DUITSMAN MOVED TO APPROVE THE 8/25/92 HRA AGENDA DELETING
ITEM #6 (DEVELOPMENT AGREEMENT) AND ADDING ITEM 8.a, A HOUSING ISSUE.
COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED 5-0.
3. Consider 7/14/92 HRA Minutes
COMMISSIONER SCHULDT MOVED TO APPROVE THE 7/14/92 HRA MINUTES AS
PRESENTED. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
4. Open Mike
No one appeared for this item.
5. Public Hearing on Tax Increment Financing Plan, Tax Increment
Financing District No. 10
Bill Rubin, Economic Development Coordinator, reviewed the Tax
Increment Financing Plan for Tax Increment Financing District No. 10.
Elk Terrace Ltd. Partnership, Monticello, Minnesota, is requesting Tax
Increment Financing funds totalling $92,000 to assist with the
construction of a 23 unit senior apartment building to be located at
Holt Avenue and Fourth Street. The $92,000 will be used to reimburse
the Ltd. Partnership for land write down costs, demolition costs, site
preparation costs, and the cost to seal existing utility lines. In
turn, Farmers Home Administration (FmHA) will provide permanent
• mortgage financing for the construction of the 23 unit apartment
building. Because the project will not be completed until March or
April, 1993, the first year to collect a full increment on both the
land and the building is 1995. Staff estimates that TIF District No.
Elk River HRA Minutes Page 2
August 25, 1992
10 will be in existence for sixteen or seventeen years during which
time tax increment dollars will be collected for a period of fifteen to
sixteen years.
It is expected that the City of Elk River will privately place a note
with a financial institution for the funds that are necessary to
reimburse the developer and for the other costs associated with the
project. It is estimated that the privately placed note will total
approximately $160,000; to be repaid with the collection of tax
increment funds over the fifteen to sixteen year period. A Development
Agreement, which sets forth the terms and conditions by which
redevelopment of the site at Holt and Fourth Street will occur, is
required of this project. The Development Agreement will also contain
an Assessment Agreement, which sets forth the finished market value of
the project. From that value, the tax increment will be generated.
At this time Chairman Hinkle opened the public hearing.
No one from the general public appeared for this item.
COMMISSIONER KROPUENSKE MOVED TO CLOSE THE PUBLIC HEARING.
COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
CHAIRMAN HINKLE MOVED APPROVAL OF HRA RESOLUTION 92-1, A RESOLUTION FOR
THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY RELATING TO THE
ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 10 AND THE
ADOPTION AND APPROVAL OF TAX INCREMENT FINANCING PLAN RELATED THERETO,
LOCATED WITHIN DEVELOPMENT DISTRICT NO. 1. COMMISSIONER TOTH SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
6. Development Agreement - TABLED
7. Consider 1993 HRA Budget and Levy
Staff estimates that the HRA will have revenues of $31,500 in 1993.
These revenues, combined with the HRA's fund balance at the end of
1992, estimated at $90,000, will result in the availability of $121,500
for projects in 1993.
The proposed 1993 HRA budget was outlined by staff as follows:
1993 PROJECTS
Jackson Square parking improvements $ 15,000
Railroad and downtown parking lot improvements $ 15,500
1993 Redevelopment Projects $ 30,000
Reserve for Future Projects $ 60,000
Transfer to General Fund $ 1,000
TOTAL $121,500
Commissioner Kropuenske suggested that the parking lot improvements for
1993 projects should be lumped under one description, that being,
"Parking Lot Improvements" and the total of that should be combined to
reflect an expenditure of $30,500. He also suggested that the 1993
Elk River HRA Minutes Page 3
August 25, 1992
• redevelopment projects and reserve for future projects should be
combined under a line "Reserve for Future Projects" and the dollar
value be combined to reflect $90,000.
COMMISSIONER SCHULDT MOVED TO APPROVE THE 1993 HRA BUDGET.
COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COMMISSIONER KROPUENSKE MOVED TO ADOPT HRA RESOLUTION 92-2, A
RESOLUTION FOR THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
ESTABLISHING A TAX LEVY FOR THE HOUSING AND REDEVELOPMENT AUTHORITY FOR
COLLECTION IN 1993. COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
8. Other Business
Pat Klaers advised the HRA Commissioners that he is proposing that HRA
Chairman Hinkle be reappointed through December 31, 1992. Thereafter,
he would be reappointed to a five year term beginning on January 1,
1993.
Set Special Meeting - COMMISSIONER DUITSMAN MOVED TO SET A SPECIAL
MEETING DATE FOR TUESDAY, SEPTEMBER 8, 1992, AT 6:45 P.M. AT THE ELK
RIVER CITY HALL TO CONSIDER THE DEVELOPMENT AGREEMENT BY AND BETWEEN
THE ELK RIVER HRA AND ELK TERRACE LTD. PARTNERSHIP. COMMISSIONER
• SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0.
8a. Housing Issue
At this time, Commissioner Kropuenske advised the HRA Commissioners
that he had been contacted by two real estate firms with concerns that
the Federal Housing Administration (FHA) will not allow refinancing of
homes in certain Deerfield Additions and within Royal Oaks Addition in
Elk River. It appears that this reluctance to authorize refinancing is
a result of the City of Elk River not putting enough penalties on the
developer of the subdivisions. Executive Director, Pat Klaers,
reminded the HRA that the penalties were in accordance with court
orders and the corrections were done to acceptable City standards and
engineering standards.
Commissioner Kropuenske suggested letters of support or letters of
request from the City Engineer, the HRA, and the City Council regarding
a review of this situation. The reluctance to authorize refinancing
may stem from a personality conflict with an FHA Official. It was
suggested that the HRA and City Council ask this person for the
internal regulations that allow FHA to not process requests for
refinancings. If that person does not respond, then the HRA and City
Council can go to elected representatives.
COMMISSIONER KROPUENSKE MOVED TO HAVE THE ELK RIVER HRA AUTHORIZE ITS
• CHAIRMAN TO REQUEST THAT THE FHA REVIEW ITS ARBITRARY BLANKET POLICY OF
NO REFINANCING IN THE DEERFIELD ADDITIONS AND IN THE ROYAL OAKS
ADDITION. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
Elk River HRA Minutes Page 4
August 25, 1992
• 9. Adjournment
There being no further business, COMMISSIONER TOTH MOVED TO ADJOURN THE
HRA MEETING. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
The meeting of the Elk River Housing and Redevelopment Authority adjourned
at 7:36 p.m.
Respectfully submitted,
AlIAM:1^ Utir
William Rubin
Economic Development Coordinator
•
•