Loading...
4.1. DRAFT MINUTES 02-05-2018 Regular Meeting of the Elk River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, January 2, 2018 Members Present: Chair Larry Toth, Commissioners Denny Chuba, Louise Kuester and Nate Ovall Members Absent: Commissioner Michelle Eder Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy and Sr. Administrative Assistant/Recording Secretary Jennifer Green 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 5:35 p.m. by Chair Toth. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider 01/02/2018 Agenda Motion by Commissioner Kuester and seconded by Commissioner Chuba to approve the January 2, 2018, HRA agenda. Motion carried 4-0. 4. Consent Agenda Commissioner Chuba requested a correction to Commissioner Ovall’s attendance on the Dec. 1, 2017, regular meeting minutes. Moved by Commissioner Chuba and seconded by Commissioner Kuester to approve the consent agenda as follows: 4.1 HRA Minutes  December 1, 2017, Closed Meeting  December 1, 2017, Regular Meeting, with the correction to Commissioner Ovall 4.2 Check Register 4.3 Balance Sheet 4.4 Revenues and Expenditures Report 4.5 Boards and Commission Meetings Calendar Housing and Redevelopment Minutes Page 2 January 2, 2018 ----------------------------- 4.6 Attendance Policy Motion carried 4-0. 5. Open Forum No one appeared for Open Forum. 6. Public Hearings There were no public hearings. 7.1 Rehab Loan Report Ms. Eddy presented the staff report. She stated staff is working with one delinquent homeowner to bring them current. She distributed an updated monthly project and financial report. 7.2 Update on Main Street Redevelopment Project Ms. Othoudt presented the staff report. Commissioner Ovall noted the cost seemed high for the residential appraisal but didn’t have any concerns with the quality of the appraiser used. Ms. Othoudt agreed and noted the lump sum cost is for two appraisals (one residential, one commercial) and indicated Casserly Appraisals have completed appraisals for the HRA in the past. She indicated she could seek out another bid if necessary. Commissioner Ovall stated he was fine with moving forward with the appraisals on both properties with Casserly Appraisals but felt they could do better with the residential appraisal pricing. Commissioner Kuester asked if both properties would continue to be used after obtaining them. Ms. Othoudt indicated the hope would be both properties once obtained would be occupied. Chair Toth asked questions regarding the need rental inspections of both properties. Ms. Othoudt indicated a rental license doesn’t transfer when properties transfer ownership and therefore rental inspections will need to be obtained after purchase. Motion by Commissioner Ovall and seconded by Commissioner Chuba to approve obtaining appraisals for property PID 75-401-0130 and PID 75-401-0140. Housing and Redevelopment Minutes Page 3 January 2, 2018 ----------------------------- Motion carried 4-0. 7.3 Marketing Update Ms. Eddy presented the staff report. Mr. Ovall complimented staff on sending Christmas cards to the rehabilitation target area. Ms. Othoudt indicated they received two telephone calls as a result of those cards from residents asking questions about the program and its offerings, noting it was a great advertising tool. 7.4 Discussion of Bylaws and any Suggested Amendments Ms. Othoudt presented the staff report. She indicated staff didn’t suggest any amendments. Commissioner Chuba stated he was surprised that the bylaws required an annual review. Commissioner Ovall suggested legal review of the bylaws to determine if they recommend any changes or if they see any emerging trends with HRAs. Ms. Othoudt suggested either a visit by Ms. Jenny Boulton to their annual meeting or review of bylaws with a letter outlining any concerns or recommendations. It was the consensus of the commission to have attorney Jenny Boulton review the bylaws on an annual basis and provide a letter to the commission outlining any concerns. 7.5 First Amendment to the Purchase Agreement for 326 Gates Ave. Ms. Othoudt presented the staff report. She distributed a first amendment to the purchase agreement, which the property owner was willing to fix with no change to the asking price and a closing date of February 2, 2018. Chair Toth asked why the HRA would require repairs done to a home that the city has deemed un-inhabitable. Ms. Othoudt stated the Commission can determine whether or not they require the improvements are made by deciding to keep the home or demolish the home after acquisition. She stated she tried to identify a dollar amount in place of fixing these items but stated the property owner was more agreeable to fix these items. She noted the cost of the roof repair and electrical issues would be an additional cost the HRA would have to spend in order to have the home become inhabitable. Commissioner Ovall asked questions regarding the city’s rental program standards and if they differ with rental property companies. Housing and Redevelopment Minutes Page 4 January 2, 2018 ----------------------------- Ms. Othoudt explained the city’s rental housing program and how the city ultimately determines if a property is rentable. She stated the standards may differ from a private rental property company. Commissioner Chuba stated he didn’t understand the differences in rental standards but to him he felt it a waste of money for the property owner to make the improvements outlined in the first amendment of the purchase agreement if the Commission decides to tear the home down once it obtains ownership. He stated his preference would be to tear down the home. Ms. Othoudt stated the list of repair items could be modified if the Commission so chose. Commissioner Ovall stated he felt the two options at hand are no repairs are made to the property and after closing, the Commission demolishes the home; or the current owner could do the repairs as outlined so the Commission can get the property repaired and back on the tax rolls after purchasing. He stated he sees merits to both options but to do the improvements isn’t directionally consistent with the intentions of the Commission to speed up the timeframe of redeveloping these properties. Motion by Commissioner Chuba and seconded by Commissioner Ovall to proceed with the First Amendment to the Purchase Agreement not requiring the list of improvements as outlined in the amendment for the property at 326 Gates Ave. and with a closing date of February 2, 2018. Motion carried 3-0 with Commissioner Kuester abstaining. The HRA recessed at 6:12 p.m. to go into work session. The HRA reconvened at 6:15 p.m. 8.1 Trunk Hwy. 10 and Main Street Redevelopment Ms. Othoudt presented the staff report. She explained the proposal needs to be more specific and narrow down their vision and preferences for the redevelopment of the area. She explained another concept to consider of an innovation center and what that type of opportunity could provide to the neighborhood and small business development sector. It was the consensus of the HRA to meet with various potential developers to seek their feedback on the types of developments that are best suited or desired for the TH 10 and Main Street redevelopment area to assist the Commission in narrowing their vision and assist in finalizing their proposal. 9. Adjournment Chair Toth adjourned the meeting at 6:32 p.m. Minutes prepared by Jennifer Green. Housing and Redevelopment Minutes Page 5 January 2, 2018 ----------------------------- _____________________ Tina Allard, City Clerk _____________________ Larry Toth, Chair Housing & Redevelopment Authority