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4.1. DRAFT MINUTES (3 sets) 06-04-2018 City of Elk Regular Meeting of the Elk River River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, May 7, 2018 Members Present: Chair Larry Toth, Commissioners Denny Chuba, Michelle Eder,Louise Knester, and Nate Ovall Members Absent: None At Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy and Sr. Administrative Assistant/Recording Secretary Jennifer Green I. Call Meeting to Order < '& N Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment Authority was called to order at 5:30 p.m, by Chair Toth. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider 05/07/2018 Agenda Motion by Commissioner Eder and seconded by Commissioner Chuba to approve the Ma,, 7 2018, HRA'agenda. Motion carried 5-0. 4. Consent Agenda tkN Moved by Commissioner Ovall and seconded by Commissioner Kuester to approve the May 7, 2018, consent agenda as follows: 4.1 April 2, 2018, regular meeting minutes. 4.2 Check Register. 4.3 Balance Sheet. 4.4 Revenues and Expenditures report. Motion carried 5-0. Housing and Redevelopment Minutes Page 2 May 7,2018 ----------------------------- 5. Open Forum No one appeared for Open Forum. 6. Public Hearings There were no public hearings. 7.1 HRA Rehabilitation Program Update Ms. Eddy presented the staff report. 7.2 Director Update 40 Ms. Othoudt presented the staff report. She indle, d there would be `"closed meeting on Friday,May 11, 2018, at 10:00 a.m. to discuss the purchase of PID# 75-401-0130, also known as 430 Main Street NW,and PID# 7„-401-0145, also known as 414 Main Street NW, Elk River. 7.3 Downtown TH 10 and Lowell Ave TIF Analysis Proposal Ms. Othoudt presented the staff report. S e provided an overview of LHB's initial analysis of the `windshield'inspection and stated she did receive permission from ISD #728 and Elk River Meats to proceed with inspections of their buildings. She asked the EDA to review the proposal from LHB to approve proceeding with performing these inspections along with additional buildings in the expanded project area as presented in the project maps. She explained what the cost would cover. The buildings along Jackson Avenue may be necessary to include for creation of a TIF district should the school district and meat market buildings not qualify as substandard. She indicated she connected with all but one of the property owners along Jackson Avenue to explain the proposed project inspection requirement and key benefits of this type of downtown redevelopment project. Commissioner Ovall expressed concerns regarding communications to the affected property owners and allowing an inspection of their property. He asked what would happen if the inspection found structural concerns and would the property owners be responsible for making repairs to substandard buildings. Ms. Othoudt explained the property owners wouldn't be obligated to make repairs to their buildings but should they want to,TIF monies could be utilized to assist them in making those improvements. She explained possible incentive scenarios if the property owner chose to belong to the TIF district. Commissioner Ovall asked what the main methods of communications she used with the downtown businesses and asked if a contact list was available of business and property owners. Housing and Redevelopment Minutes Page 3 May 7,2018 ----------------------------- Ms. Othoudt stated she went door to door to talk to the business owner and property owners along Jackson. She stated she's also communicated to the Downtown Elk River association of this project. Chair Toth asked if there were any audience members that would like to address the HRA. Tom Kolar, 708 Main St. NW—asked for clarification questions regarding the proposed district. He stated it was a very ambitious project. Debbie Rydberg, Executive Director of the Elk River Chamber of Commerce,asked if some of the buildings inspected don't meet the subpar standard,would they also be able to benefit from the TIF district and financing to make other improvements that are maybe not needed for your subpar standard. , Ms. Othoudt replied that typically the increment is used for very specific reasons and in this case, to make improvements on the building based upon the findings of the substandard report. Steve Johnson,309 Jackson St.,has owned the building since 1965. He stated the communication from the city to gain permission from him to inspect the building came up rather quickly but he did appreciate Ms. Othoudt explaining the potential redevelopment proposal to him. He stated he would like to work with the EDA to discuss the perspective of preserving the downtown and what makes sense for everybody involved. Ms. Othoudt explained the request before them was to approve by motion the proposal by LHB, Inc. She indicated staff will formalize the authorization to inspect properties from the Jackson site with written permission. Commissioner Ovall aske d"i' `t e HRA was o pproving this sunk cost,noting it's not in the budget. He indicated they're still exploring the feasibility of this redevelopment plan and doesn't feel they've received enough community feedback to proceed with incurring this expense. He wondered if they should be doing more communication with the businesses in the downtown area before proceeding with this step. Chair Toth stated he agreed with Commissioner Ovall's thoughts but felt without approving this proposal,it wouldn't provide them with the information the HRA needed to provide to potential developers. Commissioner Chuba disagreed with Commissioner Ovall and although he agreed it was an unbudgeted expense,the information obtained from the analysis would be critical in how the HRA proceeds, especially with the condition of the school district building. He noted time was of the essence. Commissioner Ovall stated he did see both sides of the issue but doesn't want it to become a preordained destiny. Housing and Redevelopment Minutes Page 4 May 7,2018 ----------------------------- Ms. Othoudt stated this analysis was not budgeted but the HRA can realize some of the reserves by year end. She reminded the HRA that there is nothing stopping a private developer to purchase the school district building and do this project on their own. She stated the advantage is the city could control what type of development is established and control the increment that's being generated with this project. She stated this analysis could reveal that this project this isn't viable at all and in order to proceed with this,the proposal should be approved. Commissioner Eder reiterated the communication of this project is important and not acceptable to give someone 48 hour notice. She asked to discuss the forms of communication the city will use. Commissioner Kuester stated regardless of what the HAdeci ,more information needs to be provided up front to avoid misinformation. Commissioner Ovall asked if there were preliminary discussions with reserving options. Ms. Othoudt stated there was preliminary discussions w th property owners and both are receptive to the idea. she d. Commissioner Ovall asked that an increment be``p` ovide Ms. Othoudt stated she could provide it for reference in Dropbox. Chair Ovall asked if the cost f this analysis could be reimbursed by a developer. Ms. Othoudt stated the expenses the HRA incurred could be used as a negotiation technique when the property was sold to a developer. The HRA asked questions regarding the details of the proposal by LHB,Inc. and Ms. Othoudt clarified the proposal. Commissioner Chuba moved to accept the proposal by LHB, Inc. to perform a 41` Redevelopment Analysis as outlined in the staff report. Chair Toth asked far a,second to a motion Chair Toth asked for a second to the motion. The motion died for lack of a second. Chair Toth stated this item will be tabled and requested it be placed on a future agenda to allow the commission members to ask additional questions. Commissioner Kuester asked if this assessment wasn't completed,what would be the outcome. Housing and Redevelopment Minutes Page 5 May 7,2018 ----------------------------- Ms. Othoudt stated if the HRA didn't move forward with the analysis, the HRA couldn't create the TIF district and a private developer could purchase the properties and develop a TIF district. Commissioner Eder asked if this analysis was the only bid received. Ms. Othoudt indicated it was as LHB is one of very few firms that provides this type of service. 8. Adjournment Chair Toth adjourned the meeting at 6:20 p.m. Minutes prepared by Jennifer Green. Tina Allard, City Clerk Larry Toth, Chair - - Housing&Redevelopment Author iVA Closed Meeting of the Elk River Housing and Redevelopment Authority City of Held at Elk River City Hall Elk Monday, May 11, 2018 River Members Present: Chair Toth, Commissioners Eder, Chuba, and Ovall Members Absent: Commissioner Knester A* Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy,and Recording Secretary/Sr. Admin. Assistant Jennifer Green I. Call Meeting to Order 4e ' Pursuant to due call and notice thereof, the meeting of!`"e'Elk River Housing and Redevelopment Authority was called to order at 10:00 a.m. by Chair Toth. 2. Closed Meeting X. *.......Nib" 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 Akx k�There no further business, Chair Toth adjourned the meeting at 10:34 a.m. Larry Toth, Chair Tina Allard, City Clerk City of Elk Special Meeting of the Ellc River River Housing and Redevelopment Authority Held at the Elk River City Hall Tuesday, May 22, 2018 Members Present: Chair Larry Toth, Commissioners Denny Chuba,Michelle Eder,Louise Kuester (11:22 a.m.), and Nate Ovall (11:07 a.m.) Members Absent: None Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy and Sr.Administrative Assistant/Recording Secretary Jennifer Green Others Present: Ryan Hardin,Broker,Hardin Companies; Frank Galli,Nowner-of Pompeii Pizza, 315 Jackson Ave.; Steve Johnson, Owner of Antiques Downtown, 309 Jackson Ave.;Debra Leedahl, owner of Kemper Drug, 323 Jackson Ave.; Lance Lindberg, tor;of;thJenneifer Wagner,Ward 4 City Council Member Call Meeting to Order � there Pursuant to due call a"nd'notice meeting o e` lk River Housing and Redevelopment Authority was called to order at 11:01 a.m. by Chair Toth. 2.1 Proposed Downtown Redevelopment Plan Ms. Othoudt presented the staff report. She provided a real estate sell sheet for the former school district office property currently for sale. Ms. Othoudt indicated LHB would add the additional building at 708 Main Street to the proposal,which would allow for inspection of 7 buildings and increase the amount of the proposal to $12,900. She noted this cost could eventually be recouped from a developer. Various business owners from Jackson Avenue and realtors from the Elk River area were present to participate in a discussion with the HRA and ask questions. Commissioner Eder asked questions regarding the proposal,inspections, and the possible substandard issues and concerns with the building after an inspection is completed and would the property owner be required to fix any issues. Ms. Othoudt explained the inspection would only be used to determine if the area would be TIF-eligible and the city could not require property owners to make any building improvements that an inspection would reveal. She indicated if the area became a TIF district,property owners could be eligible for increment funds to make needed improvements depending upon how the TIF increment was set up. Housing and Redevelopment Minutes Page 2 May 7,2018 ----------------------------- Frank Galli asked questions regarding TIF and how it would benefit property and business owners. Steve Johnson stated it made sense to include all buildings on the Jackson block and didn't feel there was a downside in doing so. He supported redevelopment of the area and expressed concerns with preserving parking. Debra Leedahl asked for information regarding the criteria for determining a substandard building and how would the improvements be defined. Jennifer Wagner expressed concerns with unintended consequences of the outcome of an inspection and requiring property owners to fix the concerns. She stated she was happy to see the business owners in attendance as she felt this to be an enormous project. She asked questions regarding how TIF funds would be distributed. She also asked the HRA if they feel this route is the right thing to do. Lance Lindberg commented about his participation in the he Mississippi Connections Plan committee and discussed the future Highway 10 MnD T lans for the area. After discussion,it was the consensus of the HRA to authorize staff to proceed with obtaining permission from the property owners in the project area outlined in the staff report,to include the 708 Main Street building, and authorize LHB to begin inspections as outlined in their proposal for the purposes of a possible redevelopment TIF district. Ms. Othoudt stated she would contact LHB to revise the proposal to include the additional buildings and the x ,:osalJuIldap rd at the next HRA 3. Adjournment Chair Toth adjourned the meeting a"t'1'1:59 a.ni: Minutes prepared by Jennifer Green. §0 Tina Allard, Ci Larry Toth, Chair Housing&Redevelopment Authority