7.1. PCSR 03-26-2019Request for Action
To Item Number
Planning Commission 7.1
Agenda Section Meeting Date Prepared by
General Business March 26, 2019 Amanda Othoudt, EDD
Item Description Reviewed by
Consider the amended and restated redevelopment Zack Carlton, Planning Manager
plan for the City of Elk River.
Reviewed by
Cal Portner, City Administrator
Action Requested
Approve, by motion, a resolution approving the amended and restated redevelopment plan.
Background/Discussion
In early 2014, the HRA found a need for redevelopment within the city to prevent the emergence of
blighting conditions, promoting the health, safety and welfare of city residents, encourage related
development and redevelopment in order to protect and improve the tax base and general economic vitality
of the city.
On July 7, 2014, the city approved a redevelopment plan for the HRA owner-occupied housing
rehabilitation loan program which focused on properties in a small targeted area of downtown. As a
result, the HRA Housing Rehabilitation loan program was implemented to assist homeowners with
improving the older housing stock in the community.
The program has proven to be successful. At their November 5, 2018, meeting, the HRA discussed
expanding the targeted area to include the entire Urban Services District beginning in 2019. At the time,
the Central MN Housing Partnership (CMHP) was the administrator of the program up until their
contract lapsed on December 31, 2018.
After contract and program changes in early 2019, the Center for Energy and Environment (CEE) now
serves as the administrator for the Housing Rehabilitation Loan Program. At their February 4, 2019,
meeting, it was the consensus of the HRA to expand the targeted area now that the new program is in
place.
In order to expand the boundaries for the HRA Housing Rehabilitation loan program, the city will need
to amend and restate the Redevelopment Plan for the owner-occupied housing rehabilitation loan
program that was adopted in 2014.
The city’s Comprehensive Plan identifies key actions or strategies that are intended to accomplish the
objectives for housing. These strategies include: encouraging strong residential property maintenance,
supporting safe and attractive neighborhoods, promoting green building techniques, ensuring new
housing and housing renovation, respecting neighboring properties and the overall character of the
neighborhood.
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
The amended and restated redevelopment plan will need to be confirmed by the Planning Commission as
consistent with the Comprehensive Plan.
The City Council will hold a public hearing on April 1, 2019, to consider adopting the amended and
restated redevelopment plan following the approval of the Planning Commission, and the HRA.
Financial Impact
N/A
Attachments
Redevelopment Plan (Redlined)
Redevelopment Plan (Clean)
Program Guidelines
Resolution
AMENDED AND RESTATED REDEVELOPMENT PLAN
FOR
OWNER-OCCUPIED HOUSING REHABILITATION
PROGRAM
HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF ELK RIVER, MINNESOTA
Originally Approved by the City Council: July 7, 2014
Originally Adopted by the HRA Board: July 7, 2014
Amended and Restated Plan Approved by the City Council: April 1, 2019
Amended and Restated Plan Adopted by the HRA Board: April 1, 2019
Drafted By:
KENNEDY & GRAVEN, CHARTERED (JSB)
470 U.S. Bank Plaza
Minneapolis, Minnesota 55402
(612) 337-9300
444465559769v23 JSB EL185-26
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444465559769v23 JSB EL185-26
I.DEFINITIONS
The terms defined below have, for purposes of this Amended and Restated Redevelopment
Plan, the meanings herein specified, unless the context specifically requires otherwise:
“City” means the City of Elk River, Minnesota.
“City Council” means the City Council of the City.
“County” means Sherburne County, Minnesota.
“Governing Body” means the duly elected City Council.
“HRA” means the Housing and Redevelopment Authority in and for the City of Elk River,
Minnesota.
“HRA Act” means Minnesota Statutes, Sections 469.001 to 469.047.469.047, as amended.
“Project Area” means the area within the boundaries of the Redevelopment Project as
shown in Exhibit A.
“Public Redevelopment Costs” means all legally permissible costs incurred or to be
incurred by or on behalf of the HRA in carrying out this Redevelopment Plan, including but not
limited to: (a) the costs of any redevelopment activities consistent with this Redevelopment Plan or
the Program Procedures as originally adopted or subsequently amended; (b) costs of administering
the Program and the Redevelopment Project including making loans to qualifying homeowners;
and (c) debt service payments on any obligations issued to finance Public Costs authorized by the
Redevelopment Plan.
“Program” means a program to assist in the repair,rehabilitation ofor improvement of 1-4
unit owner-occupied dwellings, including single-family homes, that are at least 20 years old by
making loans to qualifying homeowners in a targeted area in the City pursuant to the Program
Procedures.
“Program Procedures” means the Elk River HRA Owner-Occupied Housing Rehabilitation
Program Policies and ProceduresGuidelines adopted by the HRA on the date hereof, as amended
from time to time.
“Redevelopment Plan” means this Redevelopment Plan for the Redevelopment Project,
dated July 7, 2014, as it may beamended and restated by this Amended and Restated
Redevelopment Plan, dated April 1, 2019, as it may be further amended or supplemented from time
to time.
“Redevelopment Project” means the target area for the Program, the boundaries of which
are described and depicted on the attached Exhibit A.
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444465559769v23 JSB EL185-26
“State” means the State of Minnesota.
II.STATEMENT OF NEED AND PUBLIC PURPOSE
The HRA finds that there is a need for redevelopment within the City and the Project Area
to prevent the emergence of blight, remedy blight and blighting conditions, promote the health,
safety and welfare of City residents, encourage related development and redevelopment in order to
protect and improve the tax base and general economic vitality of the City.
More specifically, the HRA has identified that redevelopment of the Project Area and
development of the Program is critical to the vitality and safety of the Project Area, and the City as
a whole.
The HRA has found that there exists a need in the City to provide financial assistance for
the repair,rehabilitation and improvement of residential properties in the Project Area. The
Program will provide for the repair,rehabilitation and improvement of residential of
owner-occupied housing property located in the Project Area. The policies and procedures for the
Program are as set forth in the Program Procedures which are incorporated herein by reference.
The HRA finds that the Program is in the public interest of the residents of the City and
will enhance the properties in the Project Area. The Program is anticipated to provide a stimulating
effect in the Project Area. This Redevelopment Plan will facilitate the cooperation of State Public
Bodies, including but not limited to the City and the HRA, as contemplated by Section 469.041 of
the HRA Act. The HRA finds that these redevelopment activities are essential to prevent further
deterioration of the Project Area and the City as a whole, and that such efforts will also encourage
and are in fact necessary for the future economic development of the City.
The HRA specifically finds that: (a) the land within the Project Area would not be available
for redevelopment without the financial aid to be sought under this Redevelopment Plan; (b) the
Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a
whole, for the development of the Project by private enterprise; and (c) that the Redevelopment
Plan conforms to the general plan for the development of the City as a whole.
The HRA further finds that the Project is a “redevelopment project” within the meaning of
Minnesota Statutes, Section 469.002, subd. 14 of the HRA Act.
III.STATUTORY AUTHORITY
The HRA is authorized under the HRA Act to undertake and administer the Redevelopment
Plan, the Program, and the Project, and to finance Public Redevelopment Costs through a property
tax levy authorized under the HRA Act and other revenues of the HRA.
IV.STATEMENT OF OBJECTIVES
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444465559769v23 JSB EL185-26
The HRA seeks to accomplish the following general objectives within the Redevelopment
Project:
A.Promote the redevelopment of property within the Project Area in a manner
consistent with the Program and the City comprehensive plan, which property is currently utilized
by older housing stock.
B.Promote the development of the Project Area, including without limitation the
implementation of the Program.
C.Promote the concentration of appropriate residential, commercial and industrial
development within the Project area in order to maintain the area in a manner compatible with its
prominence in the City.
D.Construct, acquire or finance any public facilities, including sanitary sewer, water,
storm drainage and roads, deemed necessary and desirable by the City and the HRA for the
development or redevelopment of the Project Area and the City as whole.
E.Assist in development or redevelopment through the Program and provision of
public services, demolition and relocation, soil and terrain corrections or site improvements, or land
acquisition, all in cases deemed appropriate by the City and the HRA.
F.Employ any powers of the HRA under the HRA Act for the benefit of the Project in
such cases and upon such terms as the HRA may deem appropriate.
V.PROJECT AREA
The Project boundaries are described and depicted in the attached Exhibit A.
VI.PROPERTY ACQUISITION
The HRA may acquire such property, or interests therein, as the HRA may deem necessary
or desirable to carry out the objectives of the Redevelopment Plan. Acquisition may be
accomplished by in accordance with the HRA Act. The HRA has no current plans to acquire any
property pursuant to the Program Procedures or this Redevelopment Plan. The HRA reserves the
right to acquire property in the Project Area in accordance with its powers under the HRA Act.
VII.REDEVELOPMENT PROJECT FINANCING
The HRA’s initial financing plans relate to Public Redevelopment Costs in connection with
the Program. The HRA plans to finance the Public Redevelopment Costs related to the Program
primarily through a property tax levy authorized under the HRA Act. The HRA may also use
revenues from any other source available to it to pay any Public Redevelopment Costs.
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444465559769v23 JSB EL185-26
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EXHIBIT A
Description of Project Area
The Target Area starts at the intersection of School Street and Freeport Street and travels south
including all homes abutting Freeport Street until the intersection with 3rd Street NW. At the
intersection of Freeport Street and 3rd Street NW it travels east until the intersection with Evans
Avenue NW including all homes south of 3rd Street NW. At the intersection of 3rd Street NW
and Evans Avenue NW it travels south until it interacts with Railroad Drive. All homes along
Main Street NW east of Evans Ave NW until Carson Court NW are included, along with all
homes on 2nd Street NW and 1st Street NW cul-de-sac’s. At the intersection of Evans Ave NW
and Railroad Drive the target area boundary travels directly west over Highway 10 to the
Mississippi River. It travels up stream along the Mississippi River until the intersection with the
Elk River, it travels up stream on the Elk River until the Main Street NW bridge all homes on the
north side of the Mississippi and Elk River are included in target area. The boundary travels
along Main Street NW to the intersection with Rush Avenue NW and includes any abutting
homes. At the intersection of Main Street NW and Rush Avenue NW it travels north to Highway
10 and includes all homes east of Rush Ave NW. It then travels east along Highway 10
including all property to the south until the Quinn Avenue NW. It follows Quinn Avenue NW
north over the railroad tracks until School Street NW including all homes east of Quinn Avenue
NW. At School Street NW it travels east until the intersection with Freeport Street including all
homes south of School Street NW.Project Area includes the urban service area of the City.
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Map of Project Area
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559769v3 JSB EL185-26
AMENDED AND RESTATED REDEVELOPMENT PLAN
FOR
OWNER-OCCUPIED HOUSING REHABILITATION
PROGRAM
HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF ELK RIVER, MINNESOTA
Originally Approved by the City Council: July 7, 2014
Originally Adopted by the HRA Board: July 7, 2014
Amended and Restated Plan Approved by the City Council: April 1, 2019
Amended and Restated Plan Adopted by the HRA Board: April 1, 2019
Drafted By:
KENNEDY & GRAVEN, CHARTERED (JSB)
470 U.S. Bank Plaza
Minneapolis, Minnesota 55402
(612) 337-9300
559769v3 JSB EL185-26
2
I. DEFINITIONS
The terms defined below have, for purposes of this Amended and Restated Redevelopment
Plan, the meanings herein specified, unless the context specifically requires otherwise:
“City” means the City of Elk River, Minnesota.
“City Council” means the City Council of the City.
“County” means Sherburne County, Minnesota.
“Governing Body” means the duly elected City Council.
“HRA” means the Housing and Redevelopment Authority in and for the City of Elk River,
Minnesota.
“HRA Act ” means Minnesota Statutes, Sections 469.001 to 469.047, as amended.
“Project Area” means the area within the boundaries of the Redevelopment Project as
shown in Exhibit A.
“Public Redevelopment Costs” means all legally permissible costs incurred or to be incurred
by or on behalf of the HRA in carrying out this Redevelopment Plan, including but not limited to:
(a) the costs of any redevelopment activities consistent with this Redevelopment Plan or the
Program Procedures as originally adopted or subsequently amended; (b) costs of administering the
Program and the Redevelopment Project including making loans to qualifying homeowners; and (c)
debt service payments on any obligations issued to finance Public Costs authorized by the
Redevelopment Plan.
“Program” means a program to assist in the repair, rehabilitation or improvement of 1-4
unit owner-occupied dwellings, including single-family homes, that are at least 20 years old by
making loans to qualifying homeowners in a targeted area in the City pursuant to the Program
Procedures.
“Program Procedures” means the Elk River HRA Rehabilitation Program Guidelines
adopted by the HRA, as amended from time to time.
“Redevelopment Plan” means this Redevelopment Plan for the Redevelopment Project,
dated July 7, 2014, as amended and restated by this Amended and Restated Redevelopment Plan,
dated April 1, 2019, as it may be further amended or supplemented from time to time.
“Redevelopment Project” means the target area for the Program, the boundaries of which
are described and depicted on the attached Exhibit A.
“State” means the State of Minnesota.
559769v3 JSB EL185-26
3
II. STATEMENT OF NEED AND PUBLIC PURPOSE
The HRA finds that there is a need for redevelopment within the City and the Project Area
to prevent the emergence of blight, remedy blight and blighting conditions, promote the health,
safety and welfare of City residents, encourage related development and redevelopment in order to
protect and improve the tax base and general economic vitality of the City.
More specifically, the HRA has identified that redevelopment of the Project Area and
development of the Program is critical to the vitality and safety of the Project Area, and the City as a
whole.
The HRA has found that there exist s a need in the City to provide financial assistance for the
repair, rehabilitation and improvement of residential properties in the Project Area. The Program
will provide for the repair, rehabilitation and improvement of residential of owner-occupied housing
property located in the Project Area. The policies and procedures for the Program are as set forth in
the Program Procedures which are incorporated herein by reference.
The HRA finds that the Program is in the public interest of the residents of the City and
will enhance the properties in the Project Area. The Program is anticipated to provide a stimulating
effect in the Project Area. This Redevelopment Plan will facilitate the cooperation of State Public
Bodies, including but not limited to the City and the HRA, as contemplated by Section 469.041 of
the HRA Act . The HRA finds that these redevelopment activities are essential to prevent further
deterioration of the Project Area and the City as a whole, and that such efforts will also encourage
and are in fact necessary for the future economic development of the City.
The HRA specifically finds that: (a) the land within the Project Area would not be available
for r edevelopment without the financial aid to be sought under this Redevelopment Plan; (b) the
Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a
whole, for the development of the Project by private enterprise; and (c) that the Redevelopment Plan
conforms to the general plan for the development of the City as a whole.
The HRA further finds that the Project is a “redevelopment project” within the meaning of
Minnesota Statutes, Section 469.002, subd. 14 of the HRA Act.
III. STATUTORY AUTHORITY
The HRA is authorized under the HRA Act to undertake and administer the Redevelopment
Plan, the Program, and the Project, and to finance Public Redevelopment Costs through a property
tax levy authorized under the HRA Act and other revenues of the HRA.
IV. STATEMENT OF OBJECTIVES
The HRA seeks to accomplish the following general objectives within the Redevelopment
Project:
559769v3 JSB EL185-26
4
A. Promote the redevelopment of property within the Project Area in a manner
consistent with the Program and the City comprehensive plan, which property is currently utilized
by older housing stock.
B. Promote the development of the Project Area, including without limitation the
implementation of the Program.
C. Promote the concentration of appropr iate residential, commercial and industrial
development within the Project area in order to maintain the area in a manner compatible with its
prominence in the City.
D. Construct, acquire or finance any public facilities, including sanitary sewer, water,
storm drainage and roads, deemed necessary and desirable by the City and the HRA for the
development or redevelopment of the Project Area and the City as whole.
E. Assist in development or redevelopment through the Program and provision of
public services, demolition and relocation, soil and terrain corrections or site improvements, or land
acquisition, all in cases deemed appropriate by the City and the HRA.
F. Employ any powers of the HRA under the HRA Act for the benefit of the Project in
such cases and upon such terms as the HRA may deem appropriate.
V. PROJECT AREA
The Project boundaries are described and depicted in the attached Exhibit A.
VI. PROPERTY ACQUISITION
The HRA may acquire such property, or interests therein, as the HRA may deem necessary
or desirable to carry out the objectives of the Redevelopment Plan. Acquisition may be
accomplished by in accordance with the HRA Act. The HRA has no current plans to acquire any
property pursuant to the Program Procedures. The HRA reserves the right to acquire property in the
Project Area in accordance with its powers under the HRA Act.
VII. REDEVELOPMENT PROJECT FINANCING
The HRA’s initial financing plans relate to Public Redevelopment Costs in connection with
the Program. The HRA plans to finance the Public Redevelopment Costs related to the Program
primarily through a property tax levy authorized under the HRA Act. The HRA may also use
revenues from any other source available to it to pay any Public Redevelopment Costs.
[Remainder of this page is intentionally left blank.]
559769v3 JSB EL185-26
A-1
EXHIBIT A
Description of Project Area
The Project Area includes the urban service area of the City.
559769v3 JSB EL185-26
A-2
Map of Project Area
559769v3 JSB EL185-26
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444458v1 JSB EL185-26
CITY OF ELK RIVER PLANNING COMMISSION
RESOLUTION NO. ____________
RESOLUTION FINDING THE AMENDED AND RESTATED
REDEVELOPMENT PLAN FOR THE HOUSING
REHABILITATION LOAN PROGRAM IS CONSISTENT WITH
THE PLANS FOR DEVELOPMENT OF THE CITY OF ELK
RIVER, MINNESOTA AS A WHOLE
WHEREAS, the Housing and Redevelopment Authority in and for the City of Elk River,
Minnesota (the “HRA”) has heretofore undertaken a program (the “Program”) to assist in the
rehabilitation of owner-occupied single-family homes by making loans to qualifying homeowners in a
targeted area in the City of Elk River , Minnesota (the “City”) pursuant to the adoption of a
Redevelopment Plan (the “Plan”) for the Program on July 4, 2014, all pursuant to Minnesota Statutes,
Sections 469.001 to 469.047 (the “HRA Act”); and
WHEREAS, the HRA and the City desire to amend the Plan by an Amended and Restated
Redevelopment Plan (the “Amended and Restated Plan”) to expand the Project Area, as defined ther ein,
to be coterminous with the urban service area of the City and making certain other clarifying changes ; and
WHEREAS, the Amended and Restated Plan has been submitted to the Planning Commission
with a request to provide a written comment to the HRA and the City Council; and
WHEREAS, the Plan contemplates r epair, rehabilitation and improvement of existing housing
rather than new development; and
WHEREAS, the Planning Commission has reviewed the Plan and has compared it with the plans
for development of the City as a whole.
NOW, THEREFORE, BE IT RESOLVED By the Planning Commission of the City of Elk River,
Minnesota as follows:
The Amended and Restated Plan is found to be consistent with the Comprehensive Plan for
development of the City of Elk River as a whole.
Approved this 26th day of March, 2019 by the Planning Commission of the City of Elk River,
Minnesota.
Chair
ATTEST:
Secretary