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4.1. DRAFT MINUTES (2 sets) 03-05-2018 Regular Meeting of the Elk River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, February 5, 2018 Members Present: Chair Larry Toth, Commissioners Denny Chuba, Michelle Eder, and Nate Ovall Members Absent: Commissioner Louise Kuester Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy and Sr. Administrative Assistant/Recording Secretary Jennifer Green Also Present: Mikaela Huot, Springsted Incorporated Patrick Briggs, The Briggs Company 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 5:31 p.m. by Chair Toth. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider 02/05/2018 Agenda Motion by Commissioner Ovall and seconded by Commissioner Chuba to approve the February 5, 2018, HRA agenda. Motion carried 4-0. 4. Consent Agenda Commissioner Ovall indicated he is an employee of The Bank of Elk River in reference to Item 4.6. Commissioner Chuba asked for clarification of length of term for Item 4.9. Moved by Commissioner Ovall and seconded by Commissioner Chuba to approve the consent agenda as follows: 4.1 January 2, 2018, Regular HRA Minutes. 4.2 Check Register. Housing and Redevelopment Minutes Page 2 February 5, 2018 ----------------------------- 4.3 Balance Sheet. 4.4 Revenues and Expenditures Report. 4.5 Naming Elk River Star News as office newspaper of the HRA and the West Sherburne Tribune and Sherburne Citizen-Tribune newspapers as alternatives. 4.6 Designating the following as official depositories of the HRA:  First National Bank of Elk River  4M Fund  Wells Fargo  The Bank of Elk River  US Bank  UBS Financial Services 4.7 Designation of Place of Meeting for 2018 as Elk River City Hall. 4.8 Continuation of Amanda Othoudt as HRA Executive Director for 2018. 4.9 Confirmation and Recognition of New Commissioner Denny Chuba with term expiring 12/31/2022. Motion carried 4-0. 5. Open Forum No one appeared for Open Forum. 6. Public Hearings There were no public hearings. 7.1 Annual Meeting Election of Officers and Establish Terms Ms. Othoudt presented the staff report. Motion by Commissioner Ovall and seconded by Commissioner Chuba to appoint the following HRA officers for 2018:  Chair: Larry Toth  Vice Chair: Dennis Chuba  Secretary: Michelle Eder Motion carried 4-0. 7.2 Reading of Financial Condition Ms. Othoudt presented the staff report. Housing and Redevelopment Minutes Page 3 February 5, 2018 ----------------------------- 7.3 Annual Report Ms. Othoudt presented the staff report. She distributed the 2017 annual end-of-year report and outlined the completed and on-going projects. 7.4 Consideration of Staff Assignments from Strategic Plan Ms. Othoudt presented the staff report. 7.5 Discussion of Bylaws and any Suggested Amendments Ms. Othoudt presented the staff report. Chair Toth asked if the council’s policy regarding the boards and commissions attendance should be included or referenced in the bylaws. Ms. Othoudt indicated she shared the policy as a courtesy. Commissioner Ovall stated he agrees with all the suggested amendments to the bylaws as suggested by the HRA attorney and felt they added tremendous value. He requested that the council-approved attendance policy be somehow added to the bylaws. Ms. Othoudt stated she will consult with the HRA attorney and bring the final amendments to the bylaws to the March HRA meeting for the commission to approval. 7.6 Modifications/Amendments to the Municipal Housing and Redevelopment Act Ms. Othoudt presented the staff report. 7.7 HRA Rehabilitation Program Update Ms. Eddy presented the staff report. Chair Toth stated he felt a lot was accomplished by this program and he hoped that could continue this year. 7.8 Jackson Hills Residential Suites, LLC and Elk River Lodge Residential Suites, LLC TIF Application Commissioner Ovall indicated since there was a potential conflict of interest as an employee of The Bank of Elk River and would excuse himself from the discussion. Commissioner Eder read a statement disclosing she is an employee of Klein Bank, the bank which has proposed to provide financing for the Elk River Lodge project; she stated she is a mortgage banking officer with Klein Mortgage and not a part of the department with Klein Housing and Redevelopment Minutes Page 4 February 5, 2018 ----------------------------- Bank who is providing the financing for this project. She indicated she will abstain from voting on this item. Chair Toth asked if there was a quorum. Ms. Othoudt stated that after consulting with the HRA attorney, she was advised that this is a unique situation with the two commissioners abstaining. It leaves the remaining three commissioners to vote, and even though one commissioner is absent, a quorum still exists because two out of the three commissioners are able to vote. The result of the vote will be shared with the Council later that evening. Ms. Othoudt presented the staff report and outlined the HRA policy and applicant’s request. She indicated on January 31, the Finance Committee made a motion to recommend the HRA approve establishing a 26 year non-contiguous housing district. Ms. Othoudt indicated staff’s concerns was that the Jackson Hills project whether pooled with the ER Lodge garage construction or alone does not “exceed” the objectives identified in the policy as required to merit the TIF extension to 26 years. Staff felt that the Jackson Hills project should not extend beyond a TIF term of 15-years per the city’s policy. In addition, she explained that pooling increment from Jackson Hills to the Elk River Lodge project should not be needed as this project was already approved as an apartment complex by the City Council on its own merit in order to come into compliance with the city zoning code. Ms. Othoudt indicated that the policy as approved in December does not address priority projects for pooling increment and she recommends reviewing each project separately, each on their own merits, to determine whether they qualify for tax increment financing. Mikaela Huot from Springsted Incorporated was present to answer questions as well as the developer. The commission asked questions regarding the TIF terms, coupling two projected together previously, and if other cities had ever done something similar. Ms. Huot stated there are cities that use that flexibility and noted different districts have different rules. She said Elk River’s policy does not address non-contiguous TIF districts because that was how the policy was written and because of that, both projects would have to qualify on their own merit. Commissioner Chuba suggested that the Commission consider the recommendation provided by the Joint Finance Committee. Commissioner Toth indicated that he would not support pooling the increment from the Jackson Hills project to the Elk River Lodge project, but would support the Jackson Hills project as a standalone project and TIF District. The commissioners would like to discuss the TIF policy with regards to allowing pooling of increment at a later meeting. Housing and Redevelopment Minutes Page 5 February 5, 2018 ----------------------------- 8. Adjournment Chair Toth adjourned the meeting at 6:35 p.m. Minutes prepared by Jennifer Green. _____________________ Tina Allard, City Clerk _____________________ Larry Toth, Chair Housing & Redevelopment Authority Closed Meeting of the Elk River Housing and Redevelopment Authority Held at Elk River City Hall Monday, February 26, 2018 Members Present: Chair Toth, Commissioners Eder, Kuester, Chuba, and Ovall (arrived at 3:07 p.m.) Members Absent: None Staff Present: Economic Development Director Amanda Othoudt and City Administrator Cal Portner 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 3:01 p.m. by Chair Toth. 2. Closed Meeting The HRA held a closed meeting per MN Statute 13D.05., Subd. 3(c)(3) (the “Act”) The purpose of the meeting was to develop or consider offer or counteroffers for the purchase or sale of real or personal property”. The properties being discussed are: PID# 75-401-0130, also known as 430 Main Street NW, Elk River PID# 75-401-0145, also known as 414 Main Street NW, Elk River 3. Adjournment There being no further business, Chair Toth adjourned the meeting at 4:03 p.m. Larry Toth, Chair Tina Allard, City Clerk