4.1 HRSR 10-05-2015 DRAFT MINUTES Item 4.1
Crty of
Elk%
Meeting of the Elk River
River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, September 8, 2015
Members Present: Chair Wilson,Commissioners Burandt,Chuba,Kuester and Toth
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt,Economic
Development Specialist Colleen Eddy and Recording Secretary/Sr.
Administrative Assistant Debbie Huebner
I. 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 5:30 p.m. by Chair Wilson.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider 9/8/15 Agenda
Moved by Commissioner Kuester and seconded by Commissioner Toth to approve
the September 8,2015, agenda. Motion carried 5-0.
4. Consent Agenda
Moved by Commissioner Toth and seconded by Commissioner Kuester to approve
the following consent agenda:
4.1 August 3,2015 Regular Meeting Minutes
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Report
Motion carried 5-0.
5. Open Forum -No one appeared for Open Forum.
6.1 Public Hearings -None
7.1 CMHP Housing Rehab Update
Housing and Redevelopment Minutes Page 2
September 8,2015
The staff report was presented by Colleen Eddy.
Motion by Commissioner Toth and seconded by Commissioner Chuba to approve
the mortgage and repayment agreement for Barbara and Jerome Oleson,420 Main
St.NW. Motion carried 5-0.
7.2 Blighted Properties Demolition and Forgivable Residential Loan Program
Ms. Othoudt presented the staff report. She reviewed new changes in the program and
application.
Commissioner Toth questioned how the number of points would be determined in scoring
for Awarding Loans,page iv. He stated that criteria need to be established for awarding
points. Ms. Othoudt stated that staff will look at other cities'programs for language to
establish criteria. She noted that a workshop could be scheduled later in the month,if
necessary. She suggested one-year vacancy for one point,two points for two-year vacancy,
etc.
Commissioner Kuester stated that the scoring criteria need to be communicated to
applicants, so that they can determine whether or not it is worth going through the process
and paying the application fee.
Commissioner Toth asked who determines that a property is blighted. Ms. Othoudt stated
that can be done through the county,or by hiring a licensed structural engineer.
Commissioner Chuba stated he was not sure that vacancy should be an important criterion
in reviewing an application. He stated that a property could be occupied and still be
significantly blighted.
It was the consensus of the HRA to table this issue to the next meeting,in order to fine tune
the criteria and scoring.
Motion by Commissioner Chuba and seconded by Commissioner Toth to table Item
7.2—Blighted Properties Demolition ad Forgivable Residential Loan Program to the
October 5,2015 HRA meeting. Motion carried 5-0.
7.3 Blighted Properties Demolition and Forgivable Commercial/Industrial Loan
The staff report was presented by Amanda Othoudt.
Commissioner Chuba asked if the maximum loan amount has been decreased from what
was previously proposed. Ms. Othoudt stated yes,both the residential program and the
commercial/industrial maximum loan amounts have been reduced from$200,000 to
$75,000. Chair Wilson noted that if this does not seem to be a workable amount,once the
program is in place,the amount can be revised.
Housing and Redevelopment Minutes Page 3
September 8,2015
Commissioner Toth questioned how the increase in tax base would be determined,by
redeveloping the property. Ms. Othoudt stated that staff works very closely with the County
Assessor on all projects the city is involved in to estimate taxes.
Commissioner Kuester asked if blighted properties can be vacant buildings or properties that
already have the building(s) torn down. Ms. Othoudt stated either situation can be
determined to be blighted. Commissioner Kuester stated that a smaller property may have
difficulty meeting the requirement to create 5 new jobs,and she felt some flexibility in the
number of jobs may be needed. Commissioner Burandt stated that the number of jobs was
not reduced when they reduced the amount of the program from$200,000 to$75,000. Ms.
Othoudt indicated that the program allows for the applicant to apply for$15,000 in loan
dollars for every 1 job created. The applicant would need to create 5 new jobs to qualify for
the maximum loan amount.
Chair Wilson stated that he supported the requirement for job creation. Commissioner
Burandt suggested the number could be based on the size of the business. Commissioner
Toth stated he also supported job creation.
Discussion followed regarding job creation.
Commissioner Kuester asked if the time limit for completion of the job, since demolition
would take longer. Ms. Othoudt stated that the"clock would start ticking" at the time of
closing on the building,regardless of whether it was an existing building or a new building.
Motion by Commissioner Chuba and seconded by Commissioner Burandt to
approve the HRA Blighted Properties and Forgivable Commercial/Industrial Loan
Program Policy and Application as presented. Motion carried 4-1. Commissioner
Kuester abstained.
8.1 Announcements-None
9. Adjournment
There being no further business,Chair Wilson adjourned the meeting. The meeting
adjourned at 6:07 p.m.
Minutes prepared by Debbie Huebner.
Tina Allard,City Clerk
Stewart Wilson,Chair
Housing&Redevelopment Authority