11-12-1992 HR MIN MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
THURSDAY, NOVEMBER 12, 1992
•
Members Present: Chairman Hinkle, Commissioners Kropuenske, Schuldt,
Duitsman, and Toth (5:05 p.m. )
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 5:00 p.m.
2. Consider 11/12/92 HRA Agenda
Item 5.1. , FHA/Deerfield 3rd and 4th Additions, was added to the agenda.
3. Open Mike
No one appeared for this item.
• 4. Finalize 1993 HRA Budget and Levy
Bill Rubin stated that the Sherburne County Auditor's Office estimates
that the Elk River HRA will receive revenues of approximately $52,600
in 1993. This is based on a maximum levy of .0131% of the taxable
market value of property in the City. This is substantially more than
the HRA collected in 1992.
Commissioner Toth arrived at this time.
If the HRA Commissioners choose to collect the additional funds based
on the maximum levy of .0131%, the 1993 budget should be amended to
reflect the additional revenues. In August, the HRA adopted a 1993
budget in the amount of $121,500. This budget, however, reflected 1993
revenues estimated at $31,500 from a levy. Based on the estimate from
the Auditor's Office of revenues in the amount of $52,600, the budget
should be amended to reflect the additional $21,100 in revenues for a
total budget in the amount of $142,600.
Another option available for consideration would require the HRA to
adjust the levy of .0131% downward to produce revenues of $31,500.
This action would be consistent with previous estimates, and, would not
require an adjustment to the 1993 budget.
Commissioner Kropuenske stated that the HRA should choose to receive
• the maximum levy of $52,600 in order to build up a fund for purposes of
acquiring blighted property. Unless the HRA has sufficient funds
available to acquire properties when they become available,
opportunities to eliminate blighted areas will be lost.
Housing and Redevelopment Authority Minutes Page 2
November 12, 1992
• Chairman Hinkle stated that he would like the HRA to levy less than the
maximum of .0131%. He stated that unless all levels of government,
particularly the local level, are willing to accept fiscal
responsibility, the problem will continue to grow. Therefore, he
supported action which would result in the HRA levying for $31,500
rather than the maximum of $52,600.
Patrick Klaers reviewed with the Commissioners certain projects such as
downtown parking lots, riverfront improvement projects, and the
acquisition of transitional properties which require out of pocket
expenses by an HRA.
COMMISSIONER KROPUENSKE MOVED TO ADJUST THE 1993 HRA BUDGET TO READ
$142,600 RATHER THAN $121,500 WITH THE EXTRA REVENUES THEN BEING
ATTRIBUTABLE TO THE TOPIC "RESERVE FOR FUTURE PROJECTS". COMMISSIONER
TOTH SECONDED THE MOTION. THE MOTION CARRIED 5-0.
5.1. FHA/Deerfield Issues
At this time, Chairman Hinkle reviewed a recent letter from the
Department of Housing and Urban Development (HUD) that was sent to
Building Official Cliff Skogstad.
Commissioner Kropuenske stated that FHA and HUD may be missing the
• point that the City is trying to stress. As a result, FHA has excluded
an entire subdivision when only approximately 20% of the subdivision
was affected by drainage issues caused by the developer.
Chairman Hinkle asked Commissioner Kropuenske if he knew approximately
what percent of homes in the Deerfield additions fall within FHA
financing guidelines. Commissioner Kropuenske stated that
approximately 5% of the homes would be eligible for FHA programs.
Staff reminded HRA Commissioners that the City Council had authorized a
recent letter to the United States Senators and Representatives. Until
the Senators and Representatives respond to the issues raised by the
City, there is little that the HRA can do on this matter.
6. 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 5:33 p.m.
Respectfully submitted,
William Rubin
Economic Development Coordinator