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7.3. HRSR 02-05-2018 Request for Action To Item Number Housing and Redevelopment Authority 7.3 Agenda Section Meeting Date Prepared by General BusinessFebruary 5, 2018Amanda Othoudt, EDD Item Description Reviewed by HRA Annual Report Cal Portner, City Administrator Reviewed by Action Requested Receive the HRA Annual Report presentation. Background/Discussion Per HRA Bylaws, it is suggested that the Housing and Redevelopment Authority receive the Annual End- of-Year report. The Annual End-of-Year Report lists all projects completed and ongoing. Financial Impact N/A Attachments  2017 Annual End-of-Year Report (distributed at meeting) The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity 0a -os aak Ct, of FHousing & Redevelopment Authority River Key Highlights in 2017 ■ The HRA provided financial assistance to New Resources, LLC to rehabilitate a blighted property located on Quinn Avenue ■ The HRA and the EDA partnered to implement a Joint Finance Committee in 2018 to expedite the facilitation of financing requests and to enhance collaboration of the two bodies. ■ Property acquisition is underway to redevelop the northeast comer of Main Street and Gates Avenue. ■ A newly revamped Tax Increment Financing Policy was developed and approved, simplifying the application process for applicants to apply for financial assistance. Year-end Activity Summary 2017 Director's Message As we look back at 2017, the Housing and Redevelopment Authority (HRA) had an exciting year filled with successful new redevelopment projects that will improve preserved and improved our existing housing stock, increased property values, and began preparations for multiple redevelopments to improve commerce, transportation, and livability. The HRA has continued their focus to promote the preservation of our community's housing stock through our Housing Rehabilitation Loan Program facilitated by the Central Minnesota Housing Partnership. Maxfield Research was engaged to update our 2015 housing study to ensure we maximize our efforts to meet our housing needs. Last year alone we had 113 new single family homes constructed, a 54% increase over the previous year accounting for nearly $234 million in new property value. In addition, the City Council approved six new single family plats totaling more than 140 lots. Construction is also underway on a new 100 -unit senior housing project. We met with numerous local businesses owners and developers to find ways in which we can assist with their curb appeal, improve and preserve their structures and seek further opportunities to assist with the redevelopment of some of the community's more "fatigued" properties. In 2018, I am looking forward to a year of progress in the promotion of the HRA rehabilitation loan program and other redevelopment projects in conjunction with the Mississippi Connections Plan in Elk River through goal setting and plan implementation. Amanda Othoudt, EDFP Economic Development Director aothoudt&ElkRiverMN.gov 13065 Orono Parkway Elk River, MN 55330 763.635.1042 * www.ElkRiver.MN.g( Blighted Properties Commercial/Industrial Forgivable Loan Program In 2017, the HRA approved a $75,000 forgivable loan to New Resources, LLC to demo a blighted property on Quinn Avenue. The project is part of a larger redevelopment effort in the city. A new Truck Shop facility will develop in its Place later this year. The Truck Shop is a 7,216 square foot light maintenance facility and will provide minor repairs including oil changes, replacing tires, changing breaks, minor service, light maintenance, cleaning and detailing for Beaudry Oil oc Propane fleet vehicles The city created a Redevelopment Tl and acquired three properties in 2011 the developer with relocating the pro north so the city can improve access Quinn Avenue and County Road 10 Avenue). The project will require the and redevelopment of six existing re: properties across from Beaudry Oil. The overall redevelopment of the sit4 improve access, increase the total prc remove blighted properties, create 5 paying $16-$28 per hour and will sen with a regional storm water pond. TT. project will also make right-of-way ai Sherburne County to add a dedicated southbound right tum lane to westbc Highway 10. 2017 HRA Marketing and Advertising Over the first three years of the Rehab Loan Program, program participation increased which creates a self- sustaining program moving into the program's fourth year. Marketing and advertising of the HRA Rehabilitation Loan Program continued in 2017 with seven quarter - page color ads in the Star News newspaper. The ads ran the last seven weeks of the year as a kick off to the upcoming spring home improvement season. These print and digital banner ads increased the number of inquiries from 2016 to 2017 by 50%. In celebration of the holiday season, staff sent out over 400 holiday cards to homeowners in the expanded targeted area. The personal holiday cards generated interest with several inquiry calls over last year, when staff sent out a standard Christmas card. The rehab program is also being marketed in the 2018 Elk River Community Guide via a quarter page full color ad. The guide was sent out to all Elk River residents and will be distributed throughout the year in various venues.] 2017 Advertisements Newspaper Impressions Cost Costlimpression (print and digital) & Holiday cards 2 301,232 $4,194.50 $0.01 The Ell: River Housing and Redevelopment Authority provides Rehabilitation Loans to Homeowners! ■ Low-interest loans from $5,000 to $25,000 ■ Focusing on health and safety hazards, energy efficiency and code issues, a typical approved rehabilitation project may include any of the following: roofing, gutters, siding, windoaa doors, insulation, HVAC, electrical upgrades and plumbing upgrades. ■ projects can also include landscaping, fences, deckstpatios, home additions and space finishes The program is to assist in the rehabilitation of> owner -occupied single-family homes in a jg targeted area of downtown. VCr Igo, A IN; Rehabilitation Loan Program for Residential Properties Residents are taking advantage of our low-interest loan program and reinvesting in their homes. The program disbursed over $122,000 to six projects in 2017 enabling homeowners to make needed repairs, updates, and enhancements. Over the four-year period of the rehabilitation loan program, 14 projects have been completed with one more under construction in 2018. Many of the improvements extend the life of the home and improve property values for the entire neighborhood! Before and After Photos