7.2 HRSR 03-04-2019
Request for Action
To Item Number
Housing and Redevelopment Authority 7.2
Agenda Section Meeting Date Prepared by
General March 4, 2019 Amanda Othoudt, EDD
Item Description Reviewed by
Director Update Cal Portner, City Administrator
Reviewed by
Action Requested
Information presented for discussion only in an effort to keep the HRA updated on department activity.
Background/Discussion
HRA Rehabilitation Loan Program administered by CEE
The HRA Rehab Loan Program now administered by CEE launched on February 25, 2019, and we are
now accepting applications! We have begun advertising the new program on our social media platforms
and on our website.
The total 2019 program budget is $117,854. This allocation includes $67,854 that has revolved from the
program since its inception and $50,000 budgeted for 2019. We received four inquiries about the
program, and have been referred to CEE for follow up. The programs set up and testing periods have
been seamless, thanks to the amazing staff at CEE.
We are now working with CEE to transfer the HRA’s current portfolio to their servicing platform.
Notices will be sent to homeowners about the transfer in the next few weeks. It is expected that the
transfer will be complete in April.
For more information about the program, and application visit: http://www.mncee.org/elkriver/
HRA Annual Report
For informational purposes, the 2018 HRA Annual Report is attached.
Financial Impact
N/A
Attachments
HRA Rehab Loan Program sell sheet
2018 HRA Annual Report
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
CITY OF ELK RIVER
HOME IMPROVEMENT LOAN
$
LOAN AMOUNTS
5,000 to
FROM
$
25,000
4% FIXED INTEREST RATE
(4.185% APR)*
NO MAXIMUM INCOME LIMIT
1–4 UNIT OWNER
OCCUPIED IN THE
CITY OF ELK RIVER
FOR MORE INFORMATION ON
AND THE URBAN
SERVICES DISTRICT
THESE OR OTHER PROGRAMS
612-335-5884
MOST IMPROVEMENTS ELIGIBLE
email loaninfo@mncee.org
mncee.org/elkriver
The current grant terms and conditions stated, including interest
rates, do not constitue a commitment to lend or offer to enter into
an agreement, and such an offer may only be made pursuant to
Minnesota Statues, Section 47.206(3) and (4).
*APR based on $25,000 for 15 years.
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Economic Development Authority
2018 Annual Report
DIRECTOR MESSAGE
The City of Elk River strives to proactively facilitate redevelopment, housing diversity, and reinvestment in
our community. The Housing and Redevelopment Authority (HRA) had an exciting year filled with new
housing development and redevelopment projects that will improve our overall community.
In 2018, we saw 152 new single family housing starts, a 35% increase over the previous year generating
$34,280,302 in taxable value. Additionally, the City Council approved six single-family plats totaling 192 lots,
and Elk River Senior Living completed construction of a new 100-unit housing complex.
Through our programs, we continue to work with local businesses to redevelop some of the communityÔs
more tired properties.
Last year, the HRA continued to seek redevelopment into our older housing stock to preserve housing
diversity for all life cycles using our Housing Rehabilitation Loan Program, which will be soon administered
by the Center for Energy and Environment (CEE).
The HRA is collaborating with CEE to offer many new energy-related programs in 2019. These state-wide
programs such as the Home Energy Loan Program, additional home improvement loan opportunities, solar
financing incentives, and unsecured loan programs are a few of the options that will be available to Elk River
homeowners.
In 2019, I am looking forward to a year of progress in promoting the new and improved Housing
Rehabilitation Loan Program and other redevelopment projects in conjunction with the Mississippi
Connections Plan through goal setting and plan implementation.
Amanda Othoudt, EDFP
Economic Development Director
aothoudt@ElkRiverMN.gov
13065 Orono Parkway
Elk River, MN 55330
763.635.1042 * www.ElkRiver.MN.gov
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Ћ
KEY HIGHLIGHTS
Contracted with Maxfield Research & Consulting to update the citywide housing study.
Created a Housing Tax Increment Financing District for Jackson Hills Residential Suites.
Purchased two additional blighted properties along Main Street for redevelopment.
Implemented a Permanent Fixture Policy to assist in collaboration with the Downtown Association.
Beaudry Oil & Propane completed the expansion of their Truck Shop facility.
Expanded the Housing Rehabilitation Loan Program targeted area and partnered with the Center for Energy
and Environment to administer the program.
HOUSING STUDY UPDATE
Maxfield Research & Consulting was contracted to update the original housing study completed in 2015. The
study projects housing demand from 2017 through 2025 and provides recommendations on the amount and type
of housing that could be built in Elk River to satisfy that demand.
The study identified a potential for approximately 864 new housing units. About 20% of the total is for senior
housing; while general-occupancy housing accounted for 80% of the need. Demand is strongest for for-sale
housing, representing 395 of the 864 new housing units. There is also strong need for additional market rate (172
units) and affordable rental housing (93 units).
JACKSON HILLS RESIDENTIAL SUITES
The HRA and City Council approved a Housing
Tax Increment Financing District to facilitate the
construction of Jackson Hills Residential Suites, a
40-unit mixed income apartment complex. The
project will offer at least 8 units of affordable
housing for families in the Elk River community.
The project is scheduled to be completed in 2019.
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MAIN AND GATES REDEVELOPMENT
The HRA acquired two properties in 2018 as part
of a redevelopment project tto align with the
Mississippi Connections Plan.
Four properties have been purchased and
negotiations continue with the remaining three
property owners. The redevelopment project will
include trail connectivity and access to downtown
Elk River.
PERMANENT FIXTURE POLICY
Our downtown attracts residents and visitors year-round for shopping and entertainment. They city has sought
enhance experiences with permanent fixtures meeting a high design standard. These include light poles, lighting
fixtures, benches, planters, trash and recycling receptacles, and bicycle racks.
The HRA adopted a policy to guide purchases and implementation. The goal is to provide for a safe, clean, and
accessible downtown, to preserve the vitality of the business district and to prevent blight. The HRA commit-
ted to allocating a portion of their annual budget permanent fixtures that improve the aesthetics and overall
experience for those visiting downtown Elk River.
BLIGHTED PROPERTIES FORGIVABLE LOAN PROGRAM
Beaudry Oil & Propane completed the construction of a
7,216 square foot Truck Shop facility. The light mainte-
nance facility provides services for minor repairs including
oil changes, tire replacement, brake changes, and cleaning/
detailing of their fleet vehicles. In 2017, the Truck Shop
received a $75,000 forgivable loan for the demolition of a
blighted residential property in conjunction with the devel-
opment of their new facility.
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HOUSING REHABILITATION LOAN PROGRAM
The Housing Rehabilitation Loan Program dispersed more than $336,579 to 17 projects since it was introduced
four years ago.
Residents took advantage of the low-interest loan program to make improvements to their homes. Homeowners
were able to make energy efficiency improvements, install new windows, siding, landscaping updates, and other
necessary repairs.
Before
Before
After
After
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MARKETING
Marketing and advertising of the HRA Housing Rehabilitation Loan Program, began in the second quarter with
two ads in the Star News inviting people to attend an informational meeting facilitated by Central Minnesota
Housing Partnership. Advertising continued throughout the year with seven, quarter page, color ads in the Star
News. The ads ran the last seven weeks of the year as a kick-off to the upcoming spring home improvement
season.
Holiday cards have been a huge success in past years, and have received positive feedback from residents. In
2018, over 400 holiday cards were sent to eligible homeowners in the expanded targeted area. The rehab
program was also marketed in the 2018 Elk River Area Community Guide featuring a quarter page, full color ad.
The guide was sent out to all Elk River residents will be distributed throughout the year in various venues.
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