06-01-1994 HR MIN MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT
AUTHORITY
HELD AT THE ELK RIVER CITY HALL
WEDNESDAY, JUNE 1, 1994
Members Present: Chair Schuldt, Commissioners Kropuenske, Hinkle, and Toth
Members Absent: Commissioner Duitsman
Staff Present: Bill Rubin, Executive Director
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 7:00 p.m. by Chair Schuldt.
2. Consider June 1, 1994, HRA Agenda
COMMISSIONER HINKLE MOVED TO APPROVE THE 6/1/94 HRA AGENDA.
COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED 4-0.
3. Consider May 11, 1994, HRA Minutes
• COMMISSIONER HINKLE MOVED TO APPROVE THE 5/11/94 HRA MINUTES AS
PRESENTED. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
4. Open Mike
No one appeared for this item.
5. Public Hearing: Grant Request to T.J. Properties
Because of the circumstances explained at the May 11, 1994, HRA meeting,
Commissioner Hinkle excused himself from the dais and found a seat in the audience. He
refrained from any discussion on this topic.
Bill Rubin provided an overview of the redevelopment project proposed at 403
Main Street. T.J. Properties, a Minnesota General Partnership, comprised of Mr.
Jerry Smith and Mr. Timothy Smith, are proposing to construct a two-story office
building at the corner of Main Street and Freeport Avenue. An existing single
family home will be moved from the site, and, T.J. Properties is requesting a
redevelopment grant from the HRA for costs associated with on site utility
extensions, site grading, site preparation, foundation removal, fill, and
compaction costs.
Mr. Jerry Smith reviewed the project with the HRA Commissioners. A two-story
• building,with an exterior of stucco brick, is proposed for the site. T.J. Properties will
lease the building to Century 21 White Dove, T.S. Construction, and perhaps
Housing and Redevelopment Authority Meeting Page 2
June 1, 1994
another tenant. The finished market value of the project is estimated at$275,000. •
Mr. Smith explained that the existing single family home will be moved to a site in
Zimmerman, but the redevelopment grant will cover site preparation costs that
are unique to this site.
Chair Schuldt opened the public hearing. There being no one in attendance to
speak, Chair Schuldt closed the public hearing.
Prior to the motion and subsequent vote, Commissioner Kropuenske stated the
following clarification of the record: Duane E. Kropuenske is an officer and
director at First National Bank of Elk River. Both Jerry Smith and Timothy Smith
bank at First National and are customers of the bank. Commissioner Kropuenske
will vote on this issue and does not see a conflict of interest here as the loan
demand for projects like this in Elk River are high.
COMMISSIONER TOTH MOVED TO APPROVE A REDEVELOPMENT GRANT UP TO
$19,500 TO T.J. PROPERTIES TO ASSIST WITH SITE PREPARATION COSTS ASSOCIATED
WITH THE CONSTRUCTION OF AN OFFICE BUILDING AT 403 MAIN STREET.
COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 3-0.
6. Redevelopment Agreement with T.J. Properties
Bill Rubin reviewed the draft of the Redevelopment Agreement by and between
the Elk River HRA and T.J. Properties. He stated that this agreement has been
modeled after an agreement used by the City and the HRA for the Dennis Chuba
projects at Main Street and Evans Avenue and Main Street and Freeport Avenue.
•
He advised the Commissioners of the following changes: a.) the commercial
appraiser in the County Assessor's office has estimated the finished market value
for tax purposes at$275,000; b.) T.J. Properties is a Minnesota General Partnership,
not a Minnesota Corporation; c.) Mickie Smith is not a partner in T.J. Properties,
and therefore,will not be executing this agreement.
Bill Rubin further explained that while the agreement is with T.J. Properties, Timothy
Smith and Jerry Smith would also be signing the agreement in order to personally
guaranty the performance of T.J. Properties.
COMMISSIONER KROPUENSKE MOVED TO APPROVE THE DEVELOPMENT AGREEMENT
WITH T.J. PROPERTIES SUBJECT TO THE CHANGES NOTED BY BILL RUBIN.
COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED 3-0.
At this time, Commissioner Hinkle returned to the Council dais.
7. Construction Plans for Public Improvements at the former City Hall Site
At this time, HRA Commissioners reviewed the construction plans for the surface
improvements proposed at the former City Hall site located at US Highway 10,
Main Street, and UPA Drive. These plans were prepared by Terry Maurer of MSA
Consulting Engineers. Bill Rubin explained that the City Council accepted a
construction bid and authorized the execution of a contract with Forest Lake
Contracting, Inc., for the internal and external street improvements associated
with the Elk Park Center project. Mr. Maurer is suggesting that the HRA negotiate
a change order with Forest Lake Contracting for the improvements planned at
Housing and Redevelopment Authority Meeting Page 3
June 1, 1994
• the former City Hall site. Mr. Maurer has estimated these improvements at
$60,000-$70,000.
COMMISSIONER TOTH MOVED TO AUTHORIZE TERRY MAURER AND BILL RUBIN TO
NEGOTIATE A CHANGE ORDER WITH FOREST LAKE CONTRACTING, INC., COVERING
THE PROPOSED SURFACE IMPROVEMENTS (CURB, ACCESS, PARKING LOT, ETC.) TO
THE FORMER CITY HALL SITE. COMMISSIONER HINKLE SECONDED THE MOTION. THE
MOTION CARRIED 3-0. Commissioner Kropuenske abstained.
At this time, Commissioner Kropuenske gave an update on the Chamber's office
project at the former City Hall site. He stated that the excess fill material on UPA
Drive had been removed to accommodate UPA's proposed improvements to
said UPA Drive. to addition, the office area will be backfilled, and, by next week,
John Weicht, Dennis Chuba, and Christian Builders will likely volunteer labor to set
the deck on the office area. Once this is finished, internal improvements to the
office can begin. The Chamber hopes to occupy its new office space by mid
August.
At this time, Chair Schuldt provided the Commissioners with an update on the
American Legion Veteran's Memorial. He stated that initially, the American
Legion had also looked at the former City Hall site as a location for its memorial.
He stated that the Legion has identified another site along US Highway 10 that is
owned by MnDOT. The Legion hopes to negotiate with MnDOT to enable the
siting of a Veteran's Memorial at this location.
• 8. Other Business
There was no additional business.
9. Adjournment
There being no further business, COMMISSIONER HINKLE MOVED TO ADJOURN THE
MEETING. COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED
4-0.
The meeting of the Elk River Housing and Redevelopment Authority was
adjourned at 7:30 p.m.
Respectfully submitted,
/1\1116A.-.
William Rubin
Executive Director