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7.2. HRSR 08-06-2018 Request for Action To Item Number Housing and Redevelopment Authority 7.2 Agenda Section Meeting Date Prepared by General Business August 6, 2018 Amanda Othoudt, EDD Item Description Reviewed by 2019 HRA Budget and Resolution Establishing Cal Portner, City Administrator HRA Levy Reviewed by Action Requested Review and approve the 2019 HRA Budget and attached Resolution establishing the HRA Tax Levy for collection in year 2019. Following the HRA’s action, the City Council must approve and certify the HRA levy to Sherburne County by September 30, 2018. Background/Discussion The Economic Development Division consists of two separate budgets including:  Economic Development Authority  Housing & Redevelopment Authority Revenues The budget proposes a balanced budget of the operating levy at approx. 0.0145% of estimated market value. The state caps an HRA operating levy at 0.0185% of estimated market value. The 2019 HRA tax levy revenue is based on Sherburne County’s estimated market value of $2,184,397,000 and is expected to generate revenue of $316,450 and $8,000 in interest income. Expenditures The proposed 2019 budget was developed with the goals and action steps outlined in the 2017-2020 HRA/EDA Strategic Plan, the Mississippi Connections Downtown Plan, and the City Vision & Goals. Major initiatives from these documents include:  Rehabilitating at least 5 properties by utilizing the HRA Housing Rehabilitation Loan Program.  Allocating $50,000 to rehabilitate target areas of the city which will be developed through coordination of the HRA and Central Minnesota Housing Partnership (CMHP).  Budgeting $103,050 for acquisition of real estate for redevelopment projects in conjunction with the Mississippi Connections Plan.  Allocating $5,000 to fund a downtown permanent public fixture policy Major Changes Direction from the budget workshop included the following changes: At the July 2, 2018, HRA budget workshop, it was decided to maintain a balanced rate to reduce drawing down reserves for the 2019 budget and allow funding for new revolving loan programs. Unspent funds at The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity year end stay in the HRA fund for future housing and redevelopment purposes/projects. If a non-budget item comes up in 2019 we can use the fund balance and make a budget amendment. As of July 31, 2018, the HRA has a cash balance of $970,018. Financial Impact The expenditure budget is $324,450. Attachments  Resolution Establishing the HRA Levy for Collection in Year 2019  2019 HRA Goals and Performance Measures  Proposed 2019 Budget Detail Spreadsheet  2017-2020 Strategic Plan  DT Permanent Fixture Policy N:\\Departments\\Community Development\\Economic Development\\HRA\\Administrative\\Agenda\\2018\\08-06-2018\\7.2 sr 2019 Budget.docxDocument2 Resolution 18-_____ A Resolution of the City of Elk River Housing and Redevelopment Authority Establishing the Tax Levy for the Elk River Housing and Redevelopment Authority for the City of Elk River, Minnesota WHEREAS, Minnesota Statutes, Section 469.033, Subdivision 6, authorizes the Housing and Redevelopment Authority to levy an amount not to exceed .0185 percent of the estimated market value within the city to be used for housing and redevelopment purposes; and, WHEREAS, the Elk River Housing and Redevelopment Authority anticipates expenditures in 2019 for various housing and redevelopment activities. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: The Housing and Redevelopment Authority requests the City Council of the City of Elk River, levy a tax in the amount of 0.0140 percent of the estimated market value of the city for the benefit of the Authority to be used as provided by Minnesota Statutes. th Passed and adopted this 6 day of August, 2018. Larry Toth, Chair ATTEST: Amanda Othoudt, HRA Executive Director Division Performance Measures & Goals for 2019 Division:Housing and Redevelopment Completed by:Amanda Othoudt Date:June 25, 2018 Performance Measure 2017 Actual2018 Estimated2019 Projected 500 Direct Mailings were sent 500 Direct Mailings will be to residential homeowners and 500 Direct Mailings Sent. Six sent, two educational one educational meeting was Measure percentage of new applications projects were completed in seminars to be conducted. conducted . Estimating Five for HRA Rehab Program2017. Resulting in a 1.2% Estimating 5 projects to begin projects to begin in 2018 response rate.in 2019 resulting in a 1% resulting in a projected 1% response rate response rate. Promote new applications for the Blighted 1 property has been 1 property has been 1 property is estimated to be Properties Commercial/Industrial rehabilitated through the rehabilitated through the rehabilitated through the Forgivable Loan Program. Identify Commercial/Industrial Loan Commercial/Industrial Loan Commercial/Industrial Loan Response rate.Program.Program.Program. Division Goal Goal Objective/Task Target individuals interested in the blighted properties program and the HRA Housing Rehab program. Work with Sherburne Promote Preservation of HRA housing stockCounty 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. Promote a vital downtown 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 Enhance redevelopment opportunities for C/l properties properties eligible for the blighted properties C/I program. 2019 BUDGET DETAIL SHEET Dept:Housing & Redevelopment Authority Acct.2018 BUDGET2019 BUDGET 201520162017 Explanation/Detail of Supplies or Services No.DetailTotalDetailTotal ActualActualActual PERSONAL SERVICES 4101Regular Pay46,21356,38159,91463,25067,900 4103Part Time Pay653 4104PERA3,4844,2924,4944,7505,100 4105FICA2,9383,5453,7163,9004,200 4107Medicare6878298699001,000 4108Insurance5,7477,1577,7948,40010,800 4109Workers Comp202278270300350 TOTAL PERSONAL SERVICES59,92472,48277,05781,50089,350 SUPPLIES Office Supplies4942 4201 - (shared with EDA) General Supplies 42195,000 Downtown permanent fixtures5,000 TOTAL SUPPLIES49425,000 OTHER SERVICES & CHARGES Legal Fees1,0231,9783,923 43043,0005,000 Misc.3,0005,000 Other Professional Services22,4108,525 431910,05010,000 Downtown Plan implementation10,00010,000 Solid Waste fee (downtown parking lot)50 Postage462075 4322500500250250 Travel, Conferences & Schools1,3502,0211,210 43311,000500 MREJ - Housing Seminars1,000500 Advertising/Marketing1,8286,3289,612 434913,90013,900 Housing program brochures - marketing/printing6,5006,500 Holiday Cards500500 HRA/EDA Shared Website5,7005,700 Lead Forensics - Split between HRA/EDA1,2001,200 Publishing72125552 4359150150 Public hearing notices150150 Insurance53 43611,2001,200 Property insurance - 426 Main/ 326 Gates1,2001,200 Utilities 334 4389600600600600 Building Repair/Maint. Services79,848 44011,9003,200 Lawn/snow removal 1,9003,200 Contractual Services27,9317,95216,800 440975,00050,000 Blighted Properties Program Funding75,000 Elk River HRA Rehab Program50,000 Dues & Subscriptions191237237 4433250250 Downtown Spotlight250250 Taxes - 426 Main St629 44377,0007,000 Miscellaneous75,311 4440 80,600103,050 Property acquisition80,600103,050 TOTAL OTHER SERVICES & CHARGES54,85193,972121,798188,150195,100 TRANSFERS OUT 33,50035,000 23,25024,75024,750 4721General Fund30,00031,500 3,5003,5003,500 4735Economic Development Authority (shared expenses)3,5003,500 TOTAL HOUSING & REDEVELOPMENT AUTHORITY141,525194,753227,147303,150324,450 8/3/2018 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.) st  Utilize 171 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 1  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 2 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 st and south of HWY 10 and in 171 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 3 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 4 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. 5 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. st  Continue implementation of transportation improvements as detailed in the 171 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. 6 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 a portion of its budget each year for the purposes of acquiring, installing, and maintaining permanent public fixtures in the downtown area. Expenditures The HRA 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 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. Expenditures may be subject to city approval and/or public bidding laws as applicable. 527263v2 JSB EL185-13 EXHIBIT A MAP OF DOWNTOWN AREA 527263v2 JSB EL185-13