04-01-2019 HRA MIN SPECIALSpecial Meeting of the Elk River
Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, April I, 2019
Members Present: Vice -Chair Denny Chuba, Commissioners Michelle Eder and Louise Kuester
Members Absent: Chair Larry Toth and Commissioner Nate Ovall
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
Pursuant to due call and notice thereof, the meeting of the Elk River Housing and
Redevelopment Authority was called to order at 4:36 p.m. by Vice -Chair Chuba.
2. Main and Gates Redevelopment Project
Ms. Othoudt presented the staff report. She outlined the project area, budget, current
inventory, and properties left to acquire. She asked the commission to discuss next steps
including whether or not the sites should be demolished and shovel -ready for a developer.
Ms. Othoudt discussed the acquired homes were in disrepair and uninhabitable. They would
be ready for demolition.
Commissioner Eder suggested receiving at least two more demolition quotes to compare
services and costs. She stated some quotes may include removal services that other
companies don't offer.
Ms. Othoudt discussed the owner of 420 Main St. is a willing seller and one of the most
critical properties to obtain. She indicated in order to discuss this topic further, a closed
session to discuss pursuing a sale price for this property and the remaining two properties
would need to occur.
Commissioner Eder supported a closed session to discuss acquiring the properties and felt
perhaps the other properties would be more receptive to selling.
The commission discussed demolition and who should pay for the costs of demolition. Ms.
Othoudt discussed establishing a TIF district to reimburse city for cost of demolition. She
outlined the process for this by obtaining a blight analysis on all seven properties and
discussed the quote from LHB included in the packet. Preliminary costs to demo the HRA
acquired properties was estimated at $74,510.
Housing and Redevelopment Minutes
April 1, 2019
Page 2
Vice -Chair Chuba asked about the effect of future changes to the Main/Hwy. 10/Hwy. 169
redesign and felt those changes would make this a more valuable property.
Ms. Othoudt felt it would take another six to eight months before a preliminary plan would
be released by MnDOT.
Commissioner Eder suggested Ms. Othoudt share with the affected property owners the
city's plans and that Ms. Othoudt should have a conversation with them and 420 Main
before the closed session.
Ms. Othoudt discussed preliminary marketing to potential developers and would be looked
at again in the future as they weren't at this stage yet.
Commissioner Eder suggested hosting an informational session to promote the site to local
developers, noting it makes sense to have a local developer take on this site vs. someone
from outside the community or state.
The commission discussed the C2 - Business Mixed Use zoning and reviewed the ordinance
on what was allowed in this zone.
It was the consensus of the HRA to have Ms. Othoudt schedule a closed meeting for the
discussion of acquiring the remaining three properties. The HRA also requested obtaining
two additional demolition quotes for the currently obtained properties, and were in support
of creating a shovel -ready site for a future developer. Ms. Othoudt would contact the
affected properties before the closed session to discuss the future plans for this area.
3. Adjournment
Vice -Chair Chuba adjourned the meeting at 5:05 p.m.
Minutes prepared by Jennifer Green.
Tina Allard, City Clerk
Larry TJth, Chair
Housing & Redevelopment Authority