Loading...
2. HRSR 07-02-2018 ��i Eof lk — - Request for Action River To Item Number Housing and Redevelopment Authority 2.0 Agenda Section Meeting Date Prepared by Budget DiscussionJuly 2, 2018 Amanda Othoudt,EDD Item Description Reviewed by Discuss 2019 HRA Budget&Budget Goals Lori Ziemer,Finance Director Reviewed by Cal Portner, City Administrator Action Requested Information presented for discussion only. Action is to be taken at the August 6, 2018, HRA meeting. Background/Discussion As part of the budget process, a budget workshop is advisable to allow for informal discussions regarding the goals and objectives, major projects, and other items influencing the HRA budget. The draft budget addresses several of the goals outlined in the strategic plan,downtown plan, the city's vision worksheet,and recent HRA discussions. To meet HRA bylaws, the HRA must approve the budget on August 6, 2018, and make recommendation to the City Council on September 4, 2018. As drafted,the proposed 2019 expenditures are $125,050. Due to the new comp plan implementation; this does not yet include wages and benefits. Staff proposes to decrease expenses from other professional services, contractual services, add $5,000 to fund a DT permanent public fixture policy,increase building repair and maintenance services, and balance the budget by increasing property acquisition. The HRA levy options are as follows: 1. Previous rate (0.0140%) 2. Maximum rate (0.01850%) 3. Balanced rate (will be calculated once the EMV is obtained from Sherburne County) All levy options are applied against the Estimate Market Value obtained from Sherburne County. This information has not been made available by Sherburne County. In addition to the tax levy we also calculate interest income of$6,000. Financial Impact N/A Attachments ■ HRA 2019 Budget Worksheet ■ HRA 2019 Goals ■ EDA/HRA Strategic Plan ■ Permanent Fixture Policy The Elk River Vision A Y�elcoming community vvith revolutionary and spirited resourcefulness, exceptional P U W E H E o s r service, and community engagement that encourages and inspires prosperity ,g /` UR 6/28/2018 Dept:Housing & Redevelopment Authority Acct.2015 2016 2017 No.Actual Actual Actual Detail Total Detail Total PERSONAL SERVICES 4101 Regular Pay 46,213 56,381 59,914 63,250 4103 Part Time Pay 653 4104 PERA 3,484 4,292 4,494 4,750 4105 FICA 2,938 3,545 3,716 3,900 4107 Medicare 687 829 869 900 4108 Insurance 5,747 7,157 7,794 8,400 4109 Workers Comp 202 278 270 300 4110 Re-employment Comp TOTAL PERSONAL SERVICES 59,924 72,482 77,057 81,500 SUPPLIES 4201 Office Supplies 49 42 - (shared with EDA) 4219 General Supplies 5,000 Downtown permanent fixtures 5,000 TOTAL SUPPLIES 49 42 5,000 OTHER SERVICES & CHARGES 4304 Legal Fees 1,023 1,978 3,923 3,000 5,000 Misc.3,000 5,000 4319 Other Professional Services 22,410 8,525 10,050 10,000 Downtown Plan implementation 10,000 10,000 Solid Waste fee (downtown parking lot)50 4322 Postage 46 20 75 500 500 250 250 4331 Travel, Conferences & Schools 1,350 2,021 1,210 1,000 500 MREJ - Housing Seminars 1,000 500 4349 Advertising/Marketing 1,828 6,328 9,612 13,900 13,900 Housing program brochures - marketing/printing 6,500 6,500 Holiday Cards 500 500 HRA/EDA Shared Website 5,700 5,700 Lead Forensics - Split between HRA/EDA 1,200 1,200 4359 Publishing 72 125 552 150 150 Public hearing notices 150 150 4361 Insurance 53 1,200 1,200 Property insurance - 426 Main/ 326 Gates 1,200 1,200 4389 Utilities 334 600 600 600 600 4401 Building Repair/Maint. Services 79,848 1,900 3,200 Lawn/snow removal 1,900 3,200 4409 Contractual Services 27,931 7,952 16,800 75,000 50,000 Blighted Properties Program Funding 75,000 Elk River HRA Rehab Program 50,000 4433 Dues & Subscriptions 191 237 237 250 250 Downtown Spotlight 250 250 4437 Taxes - 426 Main St 629 7,000 7,000 4440 Miscellaneous 75,311 80,600 103,050 Property acquisition 80,600 103,050 TOTAL OTHER SERVICES & CHARGES 54,851 93,972 121,798 188,150 85,050 TRANSFERS OUT 33,500 35,000 4721 General Fund 23,250 24,750 24,750 30,000 31,500 4735 Economic Development Authority (shared expenses)3,500 3,500 3,500 3,500 3,500 TOTAL HOUSING & REDEVELOPMENT AUTHORITY 141,525 194,753 227,147 303,150 125,050 2019 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services 2019 BUDGET2018 BUDGET Dept:HRA Acct.2015 2016 2017 No.Actual Actual Actual Detail Total Detail Total Revenues 3111 Property Taxes 256,740 285,831 290,146 297,650 297,650 3322 MV Credit 142 163 164 3414 Development Fee 2,000 3621 Interest Income 5,919 8,081 8,664 5,500 5,500 6,000 3629 Miscellaneous Revenue 10 7 TOTAL HRA 262,811 296,075 298,981 303,150 6,000 2019 REVENUE DETAIL SHEET Explanation/Detail of Revenues 2018 BUDGET 2019 BUDGET Division: Completed by: Date: Performance Measure 2017 Actual 2018 Estimated 2019 Projected Measure percentage of new applications for HRA Rehab Program 500 Direct Mailings Sent. Six projects were completed in 2017. Resulting in a 1.2% response rate. 500 Direct Mailings were sent to residential homeowners and one educational meeting was conducted . Estimating Five projects to begin in 2018 resulting in a projected 1% response rate. 500 Direct Mailings will be sent, two educational seminars to be conducted. Estimating 5 projects to begin in 2019 resulting in a 1% response rate Promote new applications for the Blighted Properties Commercial/Industrial Forgivable Loan Program. Identify Response rate. 1 property has been rehabilitated through the Commercial/Industrial Loan Program. 1 property has been rehabilitated through the Commercial/Industrial Loan Program. 1 property is estimated to be rehabilitated through the Commercial/Industrial Loan Program. Division Performance Measures & Goals for 2019 Target individuals interested in the blighted properties program and the HRA Housing Rehab program. Work with Sherburne County to identify tax forfeited properties. Collaborate with Building Inspections to create a point of sale program. Protect and strengthen rental properties. Continue to implement the Mississippi Connections Plan. Explore the redevelopment potential of ISD #728, the city parking lot and Elk River Meats. Work with the DT Association to develop a beautification plan for the Main Street Corridor. Implement a permanent fixture policy on behalf of the HRA to install and maintain permanent public fixtures downtown Target business owners interested in redeveloping blighted C/I properties. Work with the building department to identify properties eligible for the blighted properties C/I program. Goal Objective/TaskDivision Goal Promote Preservation of HRA housing stock Promote a vital downtown Enhance redevelopment opportunities for C/l properties Housing and Redevelopment Amanda Othoudt June 25, 2018 1 2016-2020 EDA/HRA Strategic Plan BUSINESS DEVELOPMENT Attract new businesses and support existing businesses to increase the city’s industrial tax base, commercial tax base and employment base. INDUSTRIAL STRATEGIES  Promote available sites, encourage business retention and expansion to grow existing light industrial base with business recruitment/attraction techniques  Diversify economic base to include professional services, corporate campuses, energy- related companies, and technology businesses  Review existing programs, resources, and services and recommend improvements to increase competitive advantage and support goals  Explore creative economic development collaborations  Utilize Energy City and its tools to recruit new and assist existing businesses COMMERCIAL STRATEGIES  Promote available sites, encourage business retention and expansion to grow existing commercial base with business recruitment/attraction techniques  Diversify economic base to include a wide variety of retail and service industries, as well as additional fine dining opportunities  Review existing programs, resources, and services and recommend improvements to increase competitive advantage and support goals  Explore creative economic development collaborations  Enhance commercial district through business recruitment and activities ACTION STEPS • Complete minimum of one BRE visit a month with participation from EDA/HRA and Council members (manufacturers and top employers) and distribute Business Finance Toolkit, Available Sites, Community Profile, Energy City Brochure, Business Recycling Toolkit and other pertinent information. • Promote available sites through exhibits at various expos (minimum 2x/yr.) • Utilize 171st FAST implementation plan to create a marketing piece for Nature’s Edge Business Center and an annual redevelopment action plan to monitor progress of implementation • Partner with ERMU to identify applicable rebates for available city-owned property 2 • Promote applicable incentives through direct mailings (minimum 3x/yr.) • Promote Elk River to the restaurant industry through website (www.elkrivermn.gov/restaurants), direct mailings, Constant Contact email blasts and other marketing venues • Partner with Elk River Area Chamber of Commerce to coordinate Chamber goals with economic development goals through various implementation tasks • Utilizing economic development publications make contact with businesses looking to expand, relocate, etc. • Review Micro Loan Program and recommend improvements to increase competitive advantage and support goals • Partner with ECC and ERMU to explore a joint incentive to attract energy-related technology businesses • Partner with local schools and manufacturers to hold quarterly meetings to encourage students to explore a career in manufacturing through plant tours, youth apprenticeship programs, energy city tours and programs, and job shadowing • Update a powerful website for the Elk River Economic Development Department and the Housing and Redevelopment Authority. Provide analytic reports on a quarterly basis. • Demonstrate support for existing manufacturers and raise awareness regarding their impact on the community through various promotional activities and tours during Minnesota Manufacturers Week • Identify target industries (e.g. craft brewery, manufacturing and medical device, etc.) and create specific marketing pieces to identify advantages and programs to assist in business recruitment • Host quarterly Manufacturers’ Connection events with local manufacturers to promote financial incentives, resources and relevant topics to promote business retention and appreciation • Produce an energy conservation best-practices brochure to provide to businesses • Coordinate with Energy City to plan and market energy city events e.g. Energy City Business of the Year • Partner with Energy City and the Streets Department and continue to promote proper disposal of Fats, Oils and Grease through videos, flyers, emails, social media, and other media • Host and Promote a quarterly business rountable event with local business leaders and community stakeholders. • Partner with the Elk River Area Chamber of Commerce to hold annual event to promote economic development resources and incentives (Juice Up Your Morning, Chamber luncheon, Money Breakfast, etc.) • Continued contact and relationship development with Twin City commercial real estate brokers/developers 3 REHABILITATION AND REDEVELOPMENT Undertake strategies that facilitate rehabilitation and redevelopment of aging commercial, industrial and residential areas to ensure private reinvestment and sustainability. COMMERICAL/INDUSTRIAL STRATEGIES  Maintain a listing of available commercial /industrial sites  Promote available sites through various marketing initiatives  Identify and examine potential areas for revitalization  Review existing programs, resources, and services and recommend improvements to increase our competitive advantage and support goals  Enhance downtown commercial district through business recruitment and people- generating activities  Develop and implement a blighted properties program for both commercial and residential properties ACTION STEPS • Identify target areas for the blighted properties program • Partner with downtown business association and civic groups to promote existing and explore new downtown activities (i.e. BNI, Chamber Connections, etc.). • Partner with Elk River Area Arts Alliance to explore funding concepts for an arts center within the downtown study area • Create and distribute a survey to businesses to identify recommended improvements to existing programs, resources and services, in addition to identifying preferred methods of communication to improve Elk River business climate • Identify current property owners’ and businesses’ interest in redevelopment efforts both north and south of HWY 10 and in 171st Focused Area Study area • Create a redevelopment policy regarding capitalizing the HRA development fund and identify parameters for purchasing parcels • Create and distribute comprehensive business directory to promote downtown Elk River • Update short videos promoting available sites and applicable initiatives to distribute through social media outlets, constant contact and website 4 RESIDENTIAL STRATEGIES  Maintain listing of vacant/foreclosed properties  Address housing gaps with Comprehensive Housing Market Study recommendations  Proactively review neighborhoods annually to ensure all home are properly maintained through the code enforcement process  Seek and promote available programs to improve existing housing stock and incentivize homeownership through CMHP  Provide educational opportunities regarding foreclosure prevention and housing assistance programs by developing brochures/pamphlets ACTION STEPS • Distribute MN Home Ownership Center foreclosure prevention, Energy City conservation brochure, and Elk River Housing Toolkit information to local lenders, realtors, churches, non- profits, builders, etc. (minimum 4x/yr.) • Partner with applicable non-profits (MNHOC, Tri-CAP, etc.) to hold educational events to promote foreclosure prevention and housing programs (minimum 2x/yr.) • Continue to partner with the CMHP housing organization to fund and support a selective housing removal and rebuilding program • Host an annual Realtors’ Day to educate realtors about the programs, processes and amenities offered by the city 5 COMMUNITY BRAND Utilize community brand strategies to effect necessary changes to strengthen and enhance community image STRATEGIES  Continue to implement and enhance marketing plan that reflects the Powered by Nature brand, identifies desired target market(s), and complements other local efforts to promote the community internally and externally  Maintain existing and build new community support for the Powered by Nature brand  Establish benchmarks for performance measurement ACTION STEPS • Distribute window clings and larger windows signs of the logo • Promote the brand, engage residents, and distribute materials at expos (3x per year) and at events such as Realtors’ Day, Leadership Elk River, and Manufacturers Connection • Create profiles on first-tier business owners in Salesforce – a tracking software used to record information on local businesses and visits • • Benchmark the impact of the Powered by Nature brand with data from Google Analytics and a search engine optimization analysis. • Promote Public Art Installation and research opportunities to expand public art within the city. 6 TRANSPORTATION Advocate and support proactive planning for improvements to the local and area transportation system in a way that will support existing businesses and complement new economic growth. STRATEGIES  Advocate regional and local transportation improvements  Encourage transportation improvements as part of redevelopment/development opportunities  Support efforts to leverage local funds with state/federal resources ACTION STEPS (submitted by City Engineer) • Increase contact with legislators for state highway transportation improvements • Complete low cost/high benefit enhancements to improve traffic flow through the existing street intersections • Advocate for the continued use and expansion of Northstar commuter rail service. • Continue implementation of transportation improvements as detailed in the 171st Focused Area Study • Assure all proposed development improvements are consistent with our local and regional transportation plans. • Leverage State and Federal investment for mobility improvements to TH 169 and TH 10 with the already spent local dollars for the planning of improvements to these sections. • Evaluate all available grant opportunities to determine if the local matching amounts are a cost effective and feasible solution to support our objectives and strategies. • Promote the Quiet Zone, Northstar Commuter Train and Bike paths. 527263v2 JSB EL185-13 Downtown Permanent Public Fixture Policy Purpose The Elk River Housing and Redevelopment Authority (the “HRA”) recognizes the need for appropriate permanent fixtures available for general public use in order to maintain a safe, clean, and accessible downtown area to preserve the vitality of the business district and prevent the emergence of blighting conditions. Definitions “Downtown area” refers to the area designated “DD” in Exhibit A. “Permanent public fixtures” are fixtures placed on a non-temporary basis for general public use and includes, without limitation, light poles, other lighting, benches, planters, trash and recycling receptacles, and bicycle racks. Budget The HRA shall set aside $5,000 in its budget each year for the purposes of acquiring, installing, and maintaining permanent public fixtures in the downtown area. Expenditures The HRA board shall determine what expenditures are made for permanent public fixtures in the downtown area. To ensure the needs of the downtown area are being met, the HRA will accept recommendations and requests for specific permanent public fixtures from the Elk River Downtown Association (“ERDA”). In determining how to allocate its downtown area permanent public fixture budget, the HRA board may review the recommendations and requests of ERDA. Requests and recommendations made by ERDA are for advisory purposes only. Whether the requested or recommended expenditures are made is solely the decision of the HRA board. Expenditures may be subject to city approval and/or public bidding laws as applicable. 527263v2 JSB EL185-13 EXHIBIT A MAP OF DOWNTOWN AREA 37 6.2 © Bolton & Menk, Inc - Web GIS 0 Legend Downtown Development Zoning This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. The City of Elk River is not responsible for any inaccuracies herein contained. Disclaimer: 6/13/2018 10:59 AM 263 Feet City Limits Urban Service Area Parcels (1-24-2017) Park Areas Zoning Ag Conservation Ag Research Antenna Tower Business Park Central Commercial Office District Extreme Commercial Recreation Highway Commercial Community Commercial Commercial Reserve Transition Downtown District Light Industrial Medium Industrial General Industrial Lake Mixed Use - Elk River Plaza Planned Unit Development Single Family Residential R1a Single Family Residential R1b Single Family Residential R1c Single Family Residential R1d Two Family Residential R2a Two Family Residential R2b Townhouse / Multiple Family Residential Multiple Family Residential River