Loading...
4.1. DRAFT HRA MINUTES (2 SETS) 09-03-2019 Special Meeting of the Elk River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, August 5, 2019 Members Present: Vice Chair Dennis Chuba, Commissioners Louise Kuester and Nate Ovall Members Absent: Chair Larry Toth and Commissioner Michelle Eder Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy, and Deputy Clerk Jessica Miller 1. 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 4:33 p.m. by Vice Chair Chuba. 2. Consider Agenda Moved by Commissioner Ovall and seconded by Commissioner Kuester to approve the August 5, 2019, special meeting agenda. Motion carried 3-0. 3. HRA 2020 Budget and Budget Goals Ms. Othoudt presented the staff report. She reviewed the performance measures. She noted the projected number of HRA rehabilitation loans for 2020 is 11, which is the number necessary to recover costs associated with plan administration. Ms. Othoudt reviewed the HRA goals:  Promote preservation of HRA housing stock  Promote a vital downtown  Enhance redevelopment opportunities for commercial/industrial properties Commissioner Ovall indicated he does not recall how the amount of loan interest necessary to recover plan administration costs was arrived at. Ms. Othoudt explained the HRA pays an upfront fee for CEE to administer the loan program and it was discussed the HRA would need interest from 11 rehabilitation loans to recoup the fee paid to the plan administrator. She stated she will pull the minutes from this discussion late last year and provide to the HRA. Housing and Redevelopment Minutes Page 2 August 5, 2019 Special ----------------------------- Ms. Othoudt presented the budget. She indicated $5,000 is included for downtown planters but she is waiting to hear back from the Parks Department to see if they have an employee available to water and maintain the planters. She noted the actual cost of the planters may be closer to $8,000 - $9,000. Commissioner Ovall suggested budgeting $5,000 for the planters and if more is necessary pulling from the General Fund. Commissioner Ovall questioned if money has been allocated for additional property acquisitions. Ms. Othoudt stated historically money for property acquisition has come from reserves but money can be set aside if the HRA desires. Ms. Othoudt explained the HRA can levy the previous rate, balanced rate, or maximum rate. Commissioner Ovall questioned what the levy would be at the current expenditure level. Ms. Othoudt explained she will not know until Sherburne County provides the estimated market value in a few weeks. Vice Chair Chuba questioned if staff is anticipating a need for additional funding. Ms. Othoudt stated not that she is aware of. Ms. Othoudt indicated she will have the estimated market value by the September 3 meeting and will be able to provide levy options at that time. HRA Consensus was to move forward with this budget. 4. Adjournment Vice Chair Chuba adjourned the meeting at 4:56 p.m. Minutes prepared by Jessica Miller. _____________________ Tina Allard, City Clerk _____________________ Larry Toth, Chair Housing & Redevelopment Authority Regular Meeting of the Elk River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, August 5, 2019 Members Present: Chair Larry Toth, Commissioners Denny Chuba, Michelle Eder, Louise Kuester, and Nate Ovall Members Absent: None Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy, and Deputy Clerk Jessica Miller 1. 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 5:30 p.m. by Chair Toth. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider August 5, 2019, Agenda Motion by Commissioner Chuba and seconded by Commissioner Kuester to approve the August 5, 2019, HRA agenda. Motion carried 5-0. 4. Consent Agenda Moved by Commissioner Ovall and seconded by Commissioner Chuba to approve the August 5, 2019, consent agenda as follows: 4.1 Minutes  July 1, 2019, Regular  July 16, 2019, Closed 4.2 Check Register as outlined in the staff report. 4.3 Balance Sheet as outlined in the staff report. 4.4 Revenue/Expenditure Report as outlined in the staff report. 4.5 Resolution 19-04 authorizing the execution of a purchase agreement for 420 Main Street as outlined in the staff report. Motion carried 5-0. Housing and Redevelopment Minutes Page 2 August 5, 2019 ----------------------------- 5. Open Forum No one appeared for Open Forum. 6. Public Hearings There were no public hearings. 7.1 HRA Housing Rehabilitation Loan Program Update Ms. Othoudt provided an update. HRA recessed at 5:35 p.m. in order to go in to work session. The meeting reconvened at 5:38 p.m. 8.1 TIF District Discussion Ms. Othoudt presented the staff report. Gina Fiorini, Kennedy and Graven, presented information on establishing redevelopment TIF districts. Ms. Fiorini explained one potential issue is the city does not currently own two of the properties in the proposed TIF district. She indicated getting access to the properties to conduct inspections to confirm requirements for a redevelopment TIF district are met may be difficult. She outlined the requirements and timelines relating to setting up TIF redevelopment districts. She suggested hiring an outside company such as LHB to conduct the inspections and analysis. Commissioner Ovall explained it’s likely the five currently owned HRA properties are substandard and will meet the standards of the redevelopment district and we should be fairly confident the other two properties will as well. Ms. Fiorini indicated LHB may be able to determine whether the area meets the redevelopment district requirements without physical inspections of the two properties not currently owned by the HRA. rd Commissioner Chuba questioned if property owners for along 3 Street have been approached about allowing inspections. Ms. Othoudt indicated the property owners have some concerns the inspections may hinder sales of their properties. She noted one of the property owners has indicted possible willingness to sell in the future. Commissioner Ovall suggested engaging LHB at this time to conduct inspections for all seven properties with the understanding the two non-HRA owned properties may not be inspected on the inside. The HRA concurred. Ms. Othoudt questioned what has to be done prior to demolition. Ms. Fiorini explained the HRA would need the LHB reports in-hand reporting inspections have been completed and the area meets the requirements of a redevelopment TIF District. Commissioner Chuba indicated he would prefer having the inspections done sooner rather than later to meet weather deadlines. Ms. Othoudt explained the commission approved Housing and Redevelopment Minutes Page 3 August 5, 2019 ----------------------------- hiring LHB to conduct inspections of the currently owned properties earlier this year so we are on their schedule. She noted inspections are very intensive and conclusive and take months to complete. 8.2 Blighted Properties Discussion Ms. Othoudt presented her staff report. Chair Toth feels some properties in the city should be uninhabitable and he would like to consider expanding the blighted properties program to include assistance with rehabilitation or demolition of these properties. He expressed an interest in offering better incentives for residential property owners. Ms. Othoudt noted the HRA blighted properties forgivable loan has been highly successful for commercial properties but underutilized for residential and she’s not sure if it’s an advertising issue or if the program itself isn’t incentivizing enough to residential property owners. Commissioner Ovall explained one reason property is blighted is because residents don’t have discretionary income to fix their property up which means they may not have income to take out a loan. He believes contractors or builders may be the best audience for demolition of a blighted home to build a new home. He suggested offering a forgivable demolition loan with conditions that the new home must be in the affordable housing range and sold on the open market as a primary residence. It was noted the loan may have to be forgivable right away so it doesn’t conflict with any new construction loan. Consensus of the HRA was to continue discussing possible changes to the blighted properties program. Commissioner Eder questioned if staff has looked at programs in other cities such as Coon Rapids and Anoka. Ms. Othoudt indicated staff did research other cities when the program was implemented but its possible things have changed. She stated staff will research what’s working in other communities and come back at a future work session. 9. Adjournment Chair Toth adjourned the meeting at 6:28 p.m. Minutes prepared by Jessica Miller. _____________________ Tina Allard, City Clerk _____________________ Larry Toth, Chair Housing & Redevelopment Authority