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2.0 HRSR 07-05-2016 EOty1� ,.,�� Request for Action River To Item Number Housing and Redevelopment Authority 2.0 Agenda Section Meeting Date Prepared by N/A July 5, 2016 Amanda Othoudt,EDD Item Description Reviewed by Discuss 2016 HRA Budget& Budget Goals Cal Portner, City Administrator Reviewed by Action Requested Information presented for discussion only. Action is to be taken at the August 1, 2016, HRA meeting. Background/Discussion As part of the budget process, a budget workshop is advisable to allow for informal discussions regarding the goals and objectives, major projects, and other items influencing the HRA budget. To this end, staff has prepared a draft budget that attempts to address several of the goals outlined in the strategic plan, downtown plan, the city's vision worksheet, and recent HRA discussion. In order to meet the requirements of the HRA Bylaws, the HRA must approve the budget at their August 1, 2016,regular meeting and make recommendation to the city Council at the September 5, 2016,regular meeting. As drafted, the proposed 2017 expenditures are $253,150. The 2018 budget is for informational purposes. The HRA levy options are as follows: 1) Previous rate (0.01512%) 2) Maximum rate (0.01850%) 3) Balanced rate (will be calculated once the Estimated Market Value is obtained from Sherburne County) All levy options are applied against the Estimate Market Value obtained from Sherburne County. This information has not been made available by Sherburne County. In addition to the tax levy we also calculate interest income of$5,500. Financial Impact None Attachments ■ HRA 2017 Budget Worksheet ■ HRA 2017 Goals ■ 2017-2020 EDA/HRA Strategic Plan POWERED 6T Template Updoted 4/14 INAWRE1 2017 -2018 BUDGET DETAIL SHEET Dept: Housing&Redevelopment Authority Acct. Explanation/Detail of Supplies or Services 2014 2015 2016 BUDGET 2017 BUDGET 2018 BUDGET No. Actual Actual Detail Total Detail Total Detail Total PERSONAL SERVICES 4101 Regular Pay 39,023 46,213 56,100 59,850 4103 Part Time Pay 3,209 653 4104 PERA 2,647 3,484 4,200 4,500 4105 FICA 2,265 2,938 3,500 3,700 4107 Medicare 530 687 800 850 4108 Insurance 4,975 5,747 7,250 7,700 4109 Workers Comp 209 202 300 300 4110 Re-employment Comp 252 TOTAL PERSONAL SERVICES 53,110 59,924 72,150 76,900 SUPPLIES 4201 Office Supplies 187 (shared with EDA) 4212 Fuels&Lubes 1,400 1,400 TOTAL SUPPLIES 187 1,400 OTHER SERVICES&CHARGES 4304 Legal Fees 7,807 1,023 10,000 5,000 5,000 Misc. 101000 5,000 5,000 4319 Other Professional Services 7,618 22,410 20,450 20,050 20,050 Downtown Plan implementation 20,000 20,000 20,000 Small Cities Development Grant 400 Solid Waste fee(downtown parking lot) 50 50 50 Contract for Downtown Lights 4322 Postage 6 46 7,000 7,000 1,250 1,250 1,250 1,250 4331 Travel,Conferences&Schools 1,350 4,500 7,500 7,500 Misc.Training(Housing courses-Colleen) 1,500 1,500 1,500 NDC Training(Housing Finance Prof.-Colleen) 1,250 2,500 2,500 NDC Travel 1,750 3,500 3,500 4349 Advertising/Marketing 400 1,828 6,000 11,450 11,450 Housing programs-marketing 5,000 5,000 5,000 Downtown Marketing-brand plan 1,000 Holiday Cards 750 750 HRA/EDA Shared Website 5,700 5,700 4359 Publishing 893 72 5,000 2,500 2,500 Housing Program(s)Printing 5,000 2,500 2,500 4409 Contractual Services 18,763 27,931 150,000 100,000 100,000 Grant leverage funds-SCDP 50,000 Elk River HRA Rehab Program 100,000 100,000 100,000 4433 Dues&Subscriptions 191 250 250 Downtown Spotlight 250 250 TOTAL OTHER SERVICES&CHARGES 35,487 54,851 202,950 148,000 148,000 CAPITAL OUTLAY 4530 Improvement Project Contract TRANSFERS OUT 28,250 28,250 28,250 4721 General Fund 22,850 23,250 241750 24,750 24,750 4735 Economic Development Authority(shared expenses) 3,500 3,500 3,500 3,500 3,500 TOTAL HOUSING&REDEVELOPMENT AUTHORITY 115,134 141,525 304,750 253,150 176,250 06/30/2016 Division Performance Measures & Goals for 2017 Division: Economic Development\HRA Completed by: Amanda Othoudt, EDD Date: June 1, 2016 Performance Measure 2015 Actual 2016 Estimated 2017 Projected Promote new applications for the Elk 500 Direct Mailings Sent. Four 500 Direct Mailings will be sent to River HRA Rehabilitation Program 500 Direct Mailings Sent. Four projects projects were completed in 2016. residential homeowners and three by identifying the percentage of were completed in 2015 resulting in a.8% Two more applications are estimated educational meetings will be conducted.Estimating Five to Six response from direct mailings and response rate. to be submitted by December 2016. projects to begin in 2017 resulting educational meetings Resulting in a 1.2%response rate. a projected p ro�ected 1.2%response rate.g in Promote new applications for the 1 property is estimated to be Blighted Properties 1 property has been rehabilitated rehabilitated through the Commercial/Industrial Forgivable through the Commercial/Industrial Commercial/Industrial Loan Loan Program. Identify Response Loan Program. Program. rate. Related Vision Statement Division Goal Goal/Objective Comments Work with Sherburne County staff to identify Tax Forefieted properties that Promote Preservation of HRA Targeting individuals that maybe interested could utilize the newly created Blighted Properties Residential Forgivable Housing Stock in the blighted properties program and the Loan program.Collaborating with Building Inspections to create a Point of HRA Housing Rehab program. Sale program. Protection of rental properties.Strengthen rental properties program. Promote a vital downtown Mississippi Connections Research redeveloping downtown north of Hwy 10. Enhance Redevelopment Targeting business owners that maybe Work with the building department staff to identify properties that could Opportunities for interested in redeveloping blighted utilize the newly created blighted properties commercial/industrial program. Commercial/Industrial Properties commercial/industrial properties. 2016-2020 EDA/HRA Strategic Plan BUSINESS DEVELOPMENT Attract new businesses and support existing businesses to increase the city's industrial tax base, commercial tax base and employment base. INDUSTRIAL STRATEGIES ➢ Promote available sites, encourage business retention and expansion to grow existing light industrial base with business recruitment/attraction techniques ➢ Diversify economic base to include professional services, corporate campuses, energy- related companies, and technology businesses ➢ Review existing programs, resources, and services and recommend improvements to increase competitive advantage and support goals ➢ Explore creative economic development collaborations ➢ Utilize Energy City and its tools to recruit new and assist existing businesses COMMERCIAL STRATEGIES ➢ Promote available sites, encourage business retention and expansion to grow existing commercial base with business recruitment/attraction techniques ➢ Diversify economic base to include a wide variety of retail and service industries, as well as additional fine dining opportunities ➢ Review existing programs, resources, and services and recommend improvements to increase competitive advantage and support goals ➢ Explore creative economic development collaborations ➢ Enhance commercial district through business recruitment and activities ACTION STEPS • Complete minimum of one BRE visit a month with participation from EDA/HRA and Council members (manufacturers and top employers) and distribute Business Finance Toolkit,Available Sites, Community Profile, Energy City Brochure, Business Recycling Toolkit and other pertinent information. • Promote available sites through exhibits at various expos (minimum 2x/yr.) • Utilize 171" FAST implementation plan to create a marketing piece for Nature's Edge Business Center and an annual redevelopment action plan to monitor progress of implementation • Partner with ERMU to identify applicable rebates for available city-owned property 1 • Promote applicable incentives through direct mailings(minimum 3x/yr.) • Promote Elk River to the restaurant industry through website (www.elkrivermn.gov/restaurants), direct mailings, Constant Contact email blasts and other marketing venues • Partner with Elk River Area Chamber of Commerce to coordinate Chamber goals with economic development goals through various implementation tasks • Utilizing economic development publications make contact with businesses looking to expand, relocate, etc. • Review Micro Loan Program and recommend improvements to increase competitive advantage and support goals • Partner with ECC and ERMU to explore a joint incentive to attract energy-related technology businesses • Partner with local schools and manufacturers to hold quarterly meetings to encourage students to explore a career in manufacturing through plant tours,youth apprenticeship programs, energy city tours and programs, and job shadowing • Update a powerful website for the Elk River Economic Development Department and the Housing and Redevelopment Authority. Provide analytic reports on a quarterly basis. • Demonstrate support for existing manufacturers and raise awareness regarding their impact on the community through various promotional activities and tours during Minnesota Manufacturers Week • Identify target industries (e.g. craft brewery, manufacturing and medical device, etc.) and create specific marketing pieces to identify advantages and programs to assist in business recruitment • Host quarterly Manufacturers' Connection events with local manufacturers to promote financial incentives, resources and relevant topics to promote business retention and appreciation • Produce an energy conservation best-practices brochure to provide to businesses • Coordinate with Energy City to plan and market energy city events e.g. Energy City Business of the Year • Partner with Energy City and the Streets Department and continue to promote proper disposal of Fats, Oils and Grease through videos,flyers, emails, social media, and other media • Host and Promote a quarterly business rountable event with local business leaders and community stakeholders. • Partner with the Elk River Area Chamber of Commerce to hold annual event to promote economic development resources and incentives (Juice Up Your Morning, Chamber luncheon, Money Breakfast, etc.) • Continued contact and relationship development with Twin City commercial real estate brokers/developers 2 REHABILITATION AND REDEVELOPMENT Undertake strategies that facilitate rehabilitation and redevelopment of aging commercial, industrial and residential areas to ensure private reinvestment and sustainability. COMMERICAL/INDUSTRIAL STRATEGIES ➢ Maintain a listing of available commercial/industrial sites ➢ Promote available sites through various marketing initiatives ➢ Identify and examine potential areas for revitalization ➢ Review existing programs, resources, and services and recommend improvements to increase our competitive advantage and support goals ➢ Enhance downtown commercial district through business recruitment and people- generating activities ➢ Develop and implement a blighted properties program for both commercial and residential properties ACTION STEPS • Identify target areas for the blighted properties program • Partner with downtown business association and civic groups to promote existing and explore new downtown activities (i.e. BNI, Chamber Connections, etc.). • Partner with Elk River Area Arts Alliance to explore funding concepts for an arts center within the downtown study area • Create and distribute a survey to businesses to identify recommended improvements to existing programs, resources and services, in addition to identifying preferred methods of communication to improve Elk River business climate • Identify current property owners' and businesses' interest in redevelopment efforts both north and south of HWY 10 and in 171" Focused Area Study area • Create a redevelopment policy regarding capitalizing the HRA development fund and identify parameters for purchasing parcels • Create and distribute comprehensive business directory to promote downtown Elk River • Update short videos promoting available sites and applicable initiatives to distribute through social media outlets, constant contact and website 3 RESIDENTIAL STRATEGIES ➢ Maintain listing of vacant/foreclosed properties ➢ Address housing gaps with Comprehensive Housing Market Study recommendations ➢ Proactively review neighborhoods annually to ensure all home are properly maintained through the code enforcement process ➢ Seek and promote available programs to improve existing housing stock and incentivize homeownership through CMHP ➢ Provide educational opportunities regarding foreclosure prevention and housing assistance programs by developing brochures/pamphlets ACTION STEPS • Distribute MN Home Ownership Center foreclosure prevention, Energy City conservation brochure, and Elk River Housing Toolkit information to local lenders, realtors, churches, non- profits, builders, etc. (minimum 4x/yr.) • Partner with applicable non-profits (MNHOC,Tri-CAP, etc.)to hold educational events to promote foreclosure prevention and housing programs (minimum 2x/yr.) • Continue to partner with the CMHP housing organization to fund and support a selective housing removal and rebuilding program • Host an annual Realtors' Day to educate realtors about the programs, processes and amenities offered by the city 4 COMMUNITY BRAND Utilize community brand strategies to effect necessary changes to strengthen and enhance community image STRATEGIES ➢ Continue to implement and enhance marketing plan that reflects the Powered by Nature brand, identifies desired target market(s), and complements other local efforts to promote the community internally and externally ➢ Maintain existing and build new community support for the Powered by Nature brand ➢ Establish benchmarks for performance measurement ACTION STEPS • Distribute window clings and larger windows signs of the logo • Promote the brand, engage residents, and distribute materials at expos (3x per year) and at events such as Realtors' Day, Leadership Elk River, and Manufacturers Connection • Create profiles on first-tier business owners in Salesforce—a tracking software used to record information on local businesses and visits • Benchmark the impact of the Powered by Nature brand with data from Google Analytics and a search engine optimization analysis. • Promote Public Art Installation and research opportunities to expand public art within the city. 5 TRANSPORTATION Advocate and support proactive planning for improvements to the local and area transportation system in a way that will support existing businesses and complement new economic growth. STRATEGIES ➢ Advocate regional and local transportation improvements ➢ Encourage transportation improvements as part of redevelopment/development opportunities ➢ Support efforts to leverage local funds with state/federal resources ACTION STEPS(submitted by City Engineer) • Increase contact with legislators for state highway transportation improvements • Complete low cost/high benefit enhancements to improve traffic flow through the existing street intersections • Advocate for the continued use and expansion of Northstar commuter rail service. • Continue implementation of transportation improvements as detailed in the 171" Focused Area Study • Assure all proposed development improvements are consistent with our local and regional transportation plans. • Leverage State and Federal investment for mobility improvements to TH 169 and TH 10 with the already spent local dollars for the planning of improvements to these sections. • Evaluate all available grant opportunities to determine if the local matching amounts are a cost effective and feasible solution to support our objectives and strategies. • Promote the Quiet Zone, Northstar Commuter Train and Bike paths. 6