4.1. HRA DRAFT MIN 05-02-2016 Item 4.1
C.Ity of
El ,, Meeting of the Elk River
River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, April 4, 2016
Members Present: Chair Toth,Commissioners Burandt,Chuba,Eder and Kuester
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 Toth.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider 4/4/2016 Agenda
Moved by Commissioner Kuester and seconded by Commissioner Chuba to approve
the April 4,2016, agenda. Motion carried 5-0.
4. Consent Agenda
Moved by Commissioner Eder and seconded by Commissioner Kuester to approve
the consent agenda as follows:
4.1 February 1,2016 Regular Meeting Minutes
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Report
4.5 HRA Housing Rehab Report
Motion carried 5-0.
5. Open Forum -No one appeared for Open Forum.
6.1 Public Hearings -None
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April 4,2016
7.1 HRA Rehabilitation Loan Program Update
Colleen Eddy presented the staff report. She stated that an informational neighborhood
meeting will be held on April 21,2016 at the Union Congregational Church on 4th Street.
Staff will be advertising the event as well as CMHP. She noted that a homeowner that
participated in the program will attend to provide information regarding his experience. Ms.
Eddy stated that there are enough funds to complete 3—5 new projects.An ad will be
placed in the Star News to provide information on the program. Chair Toth asked if the
loans are being repaid back into the fund. Ms. Eddy stated that approximately$6,000 has
been paid back and there are not late payments.
7.2 Die Concepts, Inc. Blighted Properties Commercial/Industrial Application
Amanda Othoudt reviewed the staff report regarding Die Concepts,Inc. application for a
Blighted Properties Commercial/Industrial Forgivable Loan. She stated that staff feels the
application meets the criteria of the HRA's policy.
Commissioner Chuba asked if the building was occupied currently. Ms. Othoudt stated yes,
but that the current owner is in the process of moving out.
Fred Trapp,applicant,discussed his plans for the building and property,which includes
stripping the building inside and outside,reroofing,adding a loading dock and leveler,
removing some of the asphalt,and planting trees and shrubs. Mr.Trapp also stated the
property will be hooked up to city sewer and water.
Commissioner Chuba stated he would like to tour the facility. Ms. Othoudt noted that staff
visited the site approximately one month ago. Staff will set up a tour for the EDA/HRA
once they close on the property.
Commissioner Eder asked why Mr.Trapp was relocating to Elk River. Mr.Trapp stated
that Ms. Othoudt contacted him and that he has friends in this area.
Commissioner Chuba asked if there was room on the site for future expansion. Mr.Trapp
stated yes.
Motion by Commissioner Chuba and seconded by Commissioner Eder to approve
Resolution No.16-01,A Resolution Approving Loan Agreement and Related
Documents—Die Concepts Project. Motion carried 5-0.
Ms. Othoudt noted that the City Council will hold a public hearing on April 18,2016 on this
matter.
8.1 Worksession —Tax Forfeited Properties Discussion
Ms. Othoudt stated that Sherburne County contacted her to see if the City was interested in
purchasing the tax forfeit property at 18584 Troy Street NW. She stated the County
informed her that the junk has been removed from the site and the flooring has been
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April 4,2016
removed,and the house has been deemed structurally sound. The septic system was
inspected on November 30,2015,and was found to be non-compliant.There are no
building permits on file and a well test would need to be completed. Ms. Othoudt stated
that the property would be a good fit for the HRA's new Blighted Properties Loan Program
for up to a$75,000 forgivable loan to either demo the house,or repair it. She noted that the
surrounding properties are similar to this site,but it is likely reducing the overall value of the
neighborhood due to its condition. Ms. Othoudt stated the County may be open to some
negotiation on the price (asking$30,000).
Chair Toth stated that this may be an area to include for rehab. Discussion followed
regarding the possibility of meeting with the neighbors to see if they were interested in a
rehab project. Ms. Othoudt stated that the HRA could purchase the property and rehab it
or they could demo the existing house and sell the lot,or build a new home and sell it. She
stated that if the HRA is interested, staff would obtain estimates for demolition or
remodeling. Ms. Othoudt noted that the County stated they have had calls from 2 parties
interested in the property when it comes up for public auction.
Discussion followed regarding possible options for the property. Staff was given direction
to negotiate with the County on the price of the property and to provide them information
on the city's loan programs that are available.
9.1 Adjournment
Chair Toth adjourned the meeting at this time.
The meeting adjourned at 6:35 p.m.
Minutes prepared by Debbie Huebner.
Tina Allard,City Clerk
Larry Toth,Chair
Housing&Redevelopment Authority