02-05-2018 HRA MINRegular Meeting of the Elk River
Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, February S, 2018
Nienibers Present: Chair Larry Toth, C'orninissiotwrs Denny Chuba, Nfichelle Elder, and Nate
()Vall.
Menibers Absenc Cominrissioner 1,ouise Kuester
Staff Present: Flconornic Develalmient Director Atnanda (.)Lhoudt, Econonlic
Development Specialist Colleen F'Ady and Sr, Adiinistrative
Assistant/Recording Secretary Jennifer Green
Also Presenc Mikaela Hanot, Sptingsted lncq�.)rporated
Patxick B11L g'g ThBrigg s C orripany,
s,
The z n
I a all Meeting to Order
Pi,-Lrsuant to du.e call and notice thereof, the meeting of the F,1k, It.iver I lotising and
Itedevelopt-nentA utbonity was called to order at 531 pm, by Clhair Toth.
2. Pledge of Allegiance
1'he Pledge of Allegianceryas recited,
Motion by Commissioner Ov,a.0 and seconded by Commissioner Ch Liba to approve
the February 5, 2018, HRA agenda.
Motion carried 4-0.
4. Consent Agenda
Commissioner ()Vrall indicated he is art) etnployee of J'he Bank of F]h River in reference to
I tem 4,6,
Corrunissioner (.".1tiba asked for cla,rifiClItion of length of terin f"Or Iteni 4.9.
M(wed by Commissioner vall and seconded by COMMiSSiOner Chuba to approve
the consent agenda asfollows:
4.1 jantiary 2, 2018, Regular I -IRA. Minutes.
4.2 Check Registet.
B lousing and Redeyelopnient MMLACS
Felmmy 5, 2018
M
4.3 Balance Sheet.
4,4 Revenues and Expenditures Report.
4.5 Naming Elk River Star Ne.wws as office newspaper of the HRA and the West
Micrburzie Tdbue and Sherburne Citizen-TWbune newspapers as
alternatives.
4.6 Designating the f6flowing as official depositories of the HRA. -
First National Batik of Elk River
41. Fund
Wells Fargo
The Bank of Elly. River
U'S 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
201&
4.9 Cnfirtnation. and Recognition of New Commissioner Denny Chuba with,
teiTn expiring 12/31/2022,
Motion carried 4-0.
S. Open Forum
No one appeared for Open 1^orum.
6. Public Hearings
There were no public hearings.
I I !I I I Ii 0
Ms. Odioudt presented the staff report.
Motion by Commissioner Ovall and seconded by Commissioner Chuba to appoin
the following HRA, officers for 2018:
FM Chain 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.
I fouling and Redevelopment Mnilacs
Flbirum'Y i, 2018
7.3 Annual Report
I lage 3
Ms. Othoudt presented the staffreport. '--,;lie distributed the 2017 annual end -of year report
and outlined the completed and (-)n-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 Amendmenis
Ms'. Othoudt. presented the staff report.
Chair Toth asked if the council's policy regarding the boards and commissions arteridance
should be illdUded or referenced in the bylaws,,
Ms. Oth.oudt 111dicated she shared the policy as a courtesy.
C'otn.rnissioner Oval stated he agrees with all thc suggested arae nd.m.ents to the bylaws as
sur
ggested by the.[IR.A attorney and felt they added tremendous value. Ile requested that tbe,
council-apprOved attendance policy be somehow added to the byhiws.
Ms. Othoudt stated she will consult with the HR.A attorney and bring the final arnendments
to the bylaws to the March HRA meeting fo.f tllkb C-,(-)MM.iSSi01-1 to approval.
7.6 Mod ifications/Amendmeats to the Municipal Housing and Redevelopment
Act
Ms, (')tli(-)udt presented the staff report.
7.7 HRA Rehabilitation Program Update
Ms. F,ddy presented the staff. report.
(Chain Toth stated he felt a lot was accomplished 1-.)y this program and lie, hc)ped that could
Continue this year.
7.8 Jackson Hills Residential Suites, LIC and Elk River Lodge Residential Suites,
LL.0 "rIF Application
Commissioner Oval] indicated since therevvas as potential conflict of interest as an ernq.).loyee
()f""hLe Bank of Elk River and would excuse himself from the discussion.
Cornmissloner Eder read a, staternent disclosing she is awn employee (.-)f Klein Bank, the, b'ank
W d she is a
which has proposed to provide financing for the Elk River 1-odge project; she state
mortgage banking officer wirb. Kleirr Nfi)rtgage and nota part of the departirient with Klein
t tou,,,ing aml Redevelopmoit "Minutes P�age 4
fllbrwary 1), 2018
Bank who is providing the fir�.ancing for this project. She indicated she will abstain frorn
voting on this item.
("hart 'Yoth asked if there was a quorurn.
Ms. OthOLidt stated that after C011SUItill.gwidt the. 144A attorneys, SIle was advised that this is
a tinique sitiiatton with the two comi-russioners abstaining. It leaves the remaining three
commissioners to vote, and even though one commissioner is absent, a quortun still exists
because two out of the three corritnissioners are able to vote. 'I "he result of the vote will be
shared with the Cottncil later that evening.
Ms. Othoudt presented the staff report arid OLItIffled die HRA policy and applicant's request.
She'itlicatLd on
11 .1 anuary 3 1, the Finance CommiI
ttee made a motion to recommend the
HRA approve establishing a 26 year non-contiguous housing district,
Nis. OthOUdt indicated staffs concerns Nvas that. the Jacks(.)n Hills project whether pocAed
with the ER .Lodge garage construction or alone does riot "'exceed" the objectives identified
in the policy as required to tnerit the'FIF'extens.ion to 26 years. Staff felt that thcJackson
Hills project should not extend beyond aTIF term of 15-yeats per the city"s policy. In
addldt:)n, 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 C.ouncil on its own merit iri order to cornea into compliance with the city zoning
code.
MS. (AhOLidt indicated that the policy as approved in December does not address p6.)rity
projects for pooling increment and she recommends reviewing each project separately, each
on their own rnerits, to detern-drie whether they qualify for tax incrernent financffilg.
Nlikael,a H uot ftorn Springsted Incorporated was present to answer questiOns as well as the
developer.
'I'lie commission asked questions regarding the TIF terms, coupling two projected together
previc)usly, and if other cities had ever done sornethirig similar.
Ms. Fluor stated there are cities that use that flexibility and noted different districts have
different rules. She said 1.11k River's policy does not address non-contiguous TlF districts
because that was how, the policy was written and because of that, both projects would have
to qualify on their own rnerit.
(,onarrussioner C,huba suKgested that the, Corni-nission consider the rec(.:aiu-.nendafiori
provided by thenot
Joint Finance Committee. Commissioner Toth indicated that he would
support pooling the: increment frorn the Jackson Hills project to the Elk River Lodge
project, but would support the Jackson Hills project as a. standak.)ne project and TIF District.
The commissioners would like to discuss the T] F policy with regards to allow.log pooling of
increment at a later tneeting.
I fou"'ing and Redevelopment %finutus
Fcbr maiy 5 20 � 8
8. Adjournment
Chair Toth adjourried the rnecting at 635 p,ni.
Minutes prepared by Jennifer Grearm.
Tina Allard, City Clerk
. ........... . . . . . ........
LarryToth, Chair
Housing & Redevelopment Audicnity
I lag(, i