Loading...
11-16-1994 HR MIN MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL WEDNESDAY, NOVEMBER 16, 1994 . Members Present: Chair Schuldt, Toth, Hinkle, Duitsman, and Kropuenske(arrived at 7:05 p.m.) Members Absent: none Also Present: Sherry Emerson, Housing Administrator, Guardian Angels of Elk River, Inc. Staff Present: William 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 November 16, 1994 HRA Agenda • Bill Rubin suggested that item 9.1 be added to the agenda-HRA accounts payable, and, that item 8-consider an agreement by and between the Elk River HRA and Evans Park, Inc. be moved up in the agenda, so that it is considered after "open mike" COMMISSIONER TOTH MOVED TO APPROVE THE NOVEMBER 16, 1994 HRA AGENDA AS AMENDED. COMMISSIONER HINKLE SECONDED THE MOTION. THE MOTION CARRIED 4-0, WITH COMMISSIONER KROPUENSKE BEING ABSENT AT THIS TIME. 3. Consider September 20, 1994 HRA Minutes COMMISSIONER HINKLE MOVED TO APPROVE THE SEPTEMBER 20, 1994, HRA MINUTES AS PRESENTED, COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 4-0 WITH COMMISSIONER KROPUENSKE BEING ABSENT AT THIS TIME. 4. Open Mike No one appeared for this item. Commissioner Kropuenske arrived at 7:05 p.m. 4.1 Consider an Agreement by and between the Elk River HRA and Evans Park, Inc. 4 Bill Rubin provided an overview of the proposed agreement with Evans Park, Inc. He reminded HRA Commissioners at its August 11, 1994 meeting, they HRA Minutes November 16, 1994 page 2 considered a request from Guardian Angels of Elk River, Inc. regarding its desire • to have its Evans Park, Inc. property reclassified as 4C property under Minnesota Statutes. For taxes payable in 1994, the County Assessor had reclassified the property from 4C (senior housing or subsidized housing) to a 4 classification (market rate rental housing). As a result, Evans Park, Inc. saw its property taxes increase significantly. Guardian Angels objects to the 4 classification because it provides numerous services not associated with typical market rate rental housing. The proposed agreement with Evans Park, Inc. provides for an annual review with the tenant's income to ensure that the qualifications of the residents are consistent with the requirements set forth in the Minnesota Statue 283.1318. By February 2nd of each year, residents complete an affidavit which disclose income from the prior year. Affidavits are then delivered to the HRA offices for review to ensure that the conditions of 283.1318 are being met. Guardian Angels' attorney worked with the City Attorney and with the County Attorney to develop this agreement. At this time, Sherry Emerson, Housing Administrator for Guardian Angels, addressed the HRA. She also reviewed the terms and the conditions of the agreement and thanked the HRA and staff for agreeing to participate with Guardian Angels. COMMISSIONER MOVED TO APPROVE THE AGREEMENT BY AND BETWEEN THE ELK RIVER HRA AND EVANS PARK, INC. COMMISSIONER TOTH SECONDED` THE MOTION. THE MOTION CARRIED 5-0. . 5. Consider appraisal reports for the northwest quadrant of Main Street and King Avenue NW At this time, Bill Rubin reviewed the three appraisals relating to the parcels currently new listed for sale in the northwest quadrant of Main Street and King Avenue NW in downtown Elk River. These appraisals were authorized by the HRA at its meeting on September 20, 1994. The appraisal's executive summaries, disclose the following findings: LAND AND LAND ONLY PARCEL IMPROVEMENTS PRICE/SQ. FT. VALUE PRICE/SQ. FT. 307 King Ave. $172,000 $15.93 $56,000 $5.18 (clinic) 317 King Ave. $100,000 $13.89 $37,000 $5.14 (abstract/title) 812 Main St. $74,000 $5.15 $74,000 $5.14 (Kuhn- Sommers) TOTALS: $346,000 $10.68 $167,000 $5.15 Bill Rubin noted that the 307 King Avenue property is currently listed for$200,000; the 317 King Avenue is currently listed for $125,000; and the 812 Main Street 110 property is currently listed for $125,000. The appraisals disclosed two interesting findings. First, the abstract and title building in its existing condition is currently HRA Minutes November 16, 1994 page 3 • valued at $100,000. The roof is in general need of repair and contributed from this deviation from the listing price of $125,000. Secondly, the 812 Main Street property is functionally obsolete. That is, the structure on the property does not contribute to its overall value. Therefore, the appraisers indicated that it has a "land only" value of$74,000, or, $5.14 per square foot. Bill Rubin outlined the following options for the HRA: • Proceed in partnership with the restaurant developer interested in the 307 King Avenue NW site; • contact other potential developers in order to solicit interest in developing the three sites; • proceed with acquisition of the sites in the absence of a firm commitment of a developer; or, • do nothing Bill Rubin suggested that it may be very speculative to begin acquiring these properties without a commitment from a developer. However, it may be appropriate for the HRA or for the City to begin assembling these parcels on a case by case basis. Bill Rubin indicated to the HRA that a tax forfeit sale on the 812 Main Street property is scheduled for December 5, 1994. Sherburne County allows a one year redemption period for property owners whose land has gone tax forfeit. It was suggested that the County consider reviewing this policy so that redevelopment agencies can acquire property on more favorable terms or at a discount as compared to an estimated fair market value of the site(s). • Commissioner Kroupenske also suggested that the proposed developer of the 307 King Avenue site be contacted to determine if he is interested in acquiring an adjacent site as opposed to the HRA acquiring it on his behalf and retaining ownership long-term. Mark Kleckner, Real Estate Agent at Century 21-White Dove, and representative of Jeff Krueger, the proposed developer of 307 King Avenue, addressed the HRA regarding the Cl, Central Commercial off-street parking standards. He suggested that the HRA/City begin looking at how those standards can be reduced or relaxed in the Central Business District. He suggested that property in the Central Business District is extremely valuable, and, if the off-street parking standards are not reduced, no one will be interested in redeveloping downtown areas. COMMISSIONER KROPUENSKE MOVED TO HAVE THE HRA CITY STAFF REVIEW THE Cl, CENTRAL COMMERCIAL OFF-STREET PARKING REGULATIONS. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COMMISSIONER KROPUENSKE MOVED TO AUTHORIZE THE EXECUTIVE DIRECTOR TO MEET WITH COUNTY OFFICIALS TO DETERMINE IF THE COUNTY WOULD REVIEW ITS I YEAR REDEMPTION POLICY ON A CASE BY CASE BASIS. COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6. Consider payment to the City of Elk River for public improvements to the former City Hall site HRA Minutes November 16, 1994 page 4 The site improvements to the former City Hall site at US Highway 10, Main Street, • and UPA Drive now (Phil Martin Drive), have been completed. At its August 11, 1994 meeting, HRA Commissioners moved to allocate between $29,000 and $31,000 for the construction of these public improvements. City Engineer Terry Maurer of MSA Consulting Engineers indicated in a November 9, 1994 letter that the final quantities for these improvements have been finalized and the construction cost is $29,802.25. Bill Rubin indicated that this amount will be reduced by $1,687.50 as the Elk River Area Chamber of Commerce has agreed to absorb the costs associated with its concrete sidewalk and pedestrian ramps that were installed under this contract. Therefore, it is in order for the Elk River HRA to pay to the City of Elk River $28,114.75 as its share of the costs associated with the surface improvements to the former City Hall site. COMMISSIONER TOTH MOVED TO APPROVE A PAYMENT TO THE CITY OF ELK RIVER IN THE AMOUNT OF $28,114.75 FOR THE HRA'S SHARE OF PUBLIC IMPROVEMENTS TO THE FORMER CITY HALL SITE. COMMISSIONER HINKLE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7. Consider appointing an HRA Commissioner to a Chamber of Commerce Task Force - Earlier this year, the Area Chamber of Commerce conducted surveys with business leaders and opinion leaders to determine emerging issues that the Chamber could help address. Consequently, the Chamber's Government Affairs Committee formed a task force to review and prioritize these issues. Of the top three issues, one dealt with the vitality of Elk River's Central Business District. A new task force will be assembled to begin work on this topic. Potential members of the task force include: downtown property owners, members of the Downtown Development Corporation, EDA Commissioner, Planning Commissioner, and HRA Commissioner. COMMISSIONER HINKLE MOVED TO APPOINT HRA CHAIR GENE SCHULDT TO THE CHAMBER TASK FORCE ON THE ELK RIVER CENTRAL BUSINESS DISTRICT. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 3- 0-1 WITH COMMISSIONER SCHULDT ABSTAINING. 8. (This item was considered under agenda item 4.1) 9. Other business 9.1 Consider accounts payable Bill Rubin indicated that it was in order to compensate the appraisal firm of Panger/Benson Appraisal Professionals for their work on Main Street and King Avenue NW. The price of these appraisals is $6,600. When combined with the surface improvements to the former City Hall site of $28,114.75 the total amount payable to the City of Elk River is $34,714.75. COMMISSIONER KROPUENSKE MOVED TO APPROVE PAYMENT IN THE AMOUNT OF $6,600 TO THE CITY OF ELK RIVER AS REIMBURSEMENT FOR THE COST OF THE APPRAISALS AT MAIN STREET AND KING AVENUE NW. THE TOTAL REIMBURSEMENT HRA Minutes November 16, 1994 page 5 • TO THE CITY OF ELK RIVER FOR OTHER EXPENSES APPROVED AT THIS MEETING IS THEREFORE $34,714.75. COMMISSIONER HINKLE SECONDED THE MOTION. THE MOTION CARRIED 5-0. Prior to adjourning, Chair Schuldt inquired as to the status on two topics: downtown sidewalks and the public parking lot behind the Champion Auto Building and behind Johnson's Family Apparel. He suggested that a potential way to upgrade the sidewalks in the Central Business District is for the HRA to absorb those costs. In addition, he understood that the public parking lot behind the Champion Auto Building was scheduled to be upgraded utilizing HRA funds in 1994. Bill Rubin indicated that this item had been included in the 1995 budget, and, during the winter, City staff will work with MSA Consulting Engineers to develop various planning schemes for the parking lot improvement. 10. Adiournment There being no further business, COMMISSIONER HINKLE MOVED TO ADJOURN THE MEETING. COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED • 5-0. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 8:02 p.m. Respectfully submitted, 6l4144/1.--, Wi Iiam Rubin 1. HRA Executive Director •