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3.1 HRSR 08-05-2019 Request for Action To Item Number Housing and Redevelopment Authority 2.0 Agenda Section Meeting Date Prepared by Budget Discussion August 5, 2019 Amanda Othoudt, EDD Item Description Reviewed by Discuss 2020 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 September 3, 2019, 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, Mississippi Connections plan, the city’s vision worksheet, and recent HRA discussions. To meet HRA bylaws, the HRA must approve the budget on September 3, 2019, and make recommendation to the City Council that evening. As drafted, the proposed 2020 expenditures are $370,250. Staff proposes to increase expenditures from other professional services, postage, publishing, insurance, building repair/maintenance services and contractual services. Expenditures have decreased for travel, conferences & schools, advertising and marketing, utilities and property acquisition. The HRA levy options are as follows: 1. Previous rate 2. Maximum rate 3. Balanced rate All levy options are applied against the Estimated 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 $8,000. Financial Impact N/A Attachments  HRA 2020 Budget Worksheet  HRA 2020 Goals  EDA/HRA Strategic Plan The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity 2020 BUDGET DETAIL SHEET Dept:Housing & Redevelopment Authority Acct.2019 BUDGET2020 BUDGET 201620172018 Explanation/Detail of Supplies or Services No.DetailTotalDetailTotal ActualActualActual REVENUES: Property Taxes 285,831 290,146 290,054 3111 316,450 362,250 MV Credit 163 164 152 3322 - - Development Fee 2,000 - - 3414 - - Interest Income 8,081 8,664 10,200 3621 8,000 8,000 Miscellaneous Revenue - 7 - 3629 - - TOTAL HRA REVENUES 296,075 298,981 300,406 324,450 370,250 EXPENDITURES: PERSONAL SERVICES 4101Regular Pay 56,381 59,914 65,184 67,900 71,050 4104PERA 4,292 4,494 4,889 5,100 5,350 4105FICA 3,545 3,716 4,035 4,200 4,400 4107Medicare 829 869 944 1,000 1,050 4108Insurance 7,157 7,794 10,292 10,800 11,200 4109Workers Comp 278 270 315 350 350 TOTAL PERSONAL SERVICES 72,482 77,057 85,659 89,350 93,400 SUPPLIES Office Supplies 49 42 - 4201 - - (shared with EDA) - - General Supplies - - - 4219 5,000 5,000 Downtown permanent fixtures 5,000 5,000 TOTAL SUPPLIES 49 42 - 5,000 5,000 OTHER SERVICES & CHARGES Legal Fees 1,978 3,923 3,394 4304 5,000 5,000 Misc. 5,000 5,000 Other Professional Services - 8,525 23,016 4319 10,000 23,050 Downtown Plan implementation 10,000 CEE 23,050 Postage 20 75 20 4322 250 250 3,500 3,500 Travel, Conferences & Schools 2,021 1,210 596 4331 500 200 MREJ - Housing Seminars 500 200 Advertising/Marketing 6,328 9,612 10,512 4349 13,900 11,200 Housing Program Marketing Materials - printing 6,500 2,500 Holiday Cards - Expanded Area 500 1,800 HRA/EDA Shared Website 5,700 5,700 Lead Forensics - Split between HRA/EDA 1,200 1,200 Publishing 125 552 637 4359 150 250 Public hearing notices 150 250 Insurance 53 924 4361 - 1,200 3,500 Property insurance 1,200 3,500 Utilities 334 243 4389 - 600 600 250 250 Building Repair/Maint. Services 79,848 3,930 4401 - 3,200 4,000 Lawn/snow removal 3,200 4,000 Contractual Services 7,952 16,800 11,675 4409 50,000 180,000 Blighted Properties Program Funding Elk River HRA Rehab Program 50,000 180,000 - Dues & Subscriptions 237 237 237 4433 250 250 Downtown Spotlight 250 250 Property Taxes 629 5,761 4437 - 7,000 7,000 4,450 4,450 Miscellaneous 75,311 - 354,197 4440 103,050 - Property acquisition 103,050 - TOTAL OTHER SERVICES & CHARGES 93,972 121,798 415,142 195,100 235,650 TRANSFERS OUT 35,000 36,200 24,750 24,750 30,000 4721General Fund 31,500 32,700 3,500 3,500 3,500 4735Economic Development Authority (shared expenses) 3,500 3,500 TOTAL HRA EXPENDITURES 194,753 227,147 534,301 324,450 370,250 REVENUES OVER/(UNDER) EXPENDITURES 101,322 71,834 (233,895) - - 7/31/2019 Division Performance Measures & Goals for 2020 Division:Housing and Redevelopment Completed by:Amanda Othoudt Date:May 24, 2019 Performance Measure2018 Actual2019 Estimated2020 Projected Number of new applications for 1511 HRA Rehab Loan Blighted Properties Residential and Commercial/Industrial 111 Forgivable Loan Program Division Goal Goal Objective/Task Target individuals interested in the blighted properties program and the HRA Rehab Loan Program. Work with Promote Preservation of HRA Housing Stock Sherburne County to identify tax forfeited properties. Protect and strengthen rental properties. Participate in the Downtown Rivers Edge meetings. Continue to implement the Mississippi Connections Plan. Work with the DT Association to develop a beautification plan for the Main Street Corridor. Continue to promote the permanent fixture Promote a Vital Downtown policy on behalf of the HRA to install and maintain permanent public fixtures downtown. Promote the Downtown Facade Improvement microloan program. Target business owners interested in redevelopment blighted C/I properties. Work with the building department to identify Enhance redevelopment opportunities for C/I properties properties eligible for the blighted properties C/I program 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