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7.2. HRSR 09-03-2019 Request for Action To Item Number Housing and Redevelopment Authority 7.2 Agenda Section Meeting Date Prepared by General Business September 3, 2019 Amanda Othoudt, EDD Item Description Reviewed by 2020 HRA Budget and Resolution Establishing Lori Ziemer, Finance Director HRA Levy Reviewed by Cal Portner, City Administrator Action Requested Review and approve the 2020 HRA Budget and attached Resolution establishing the HRA Tax Levy for collection in year 2020. Following the HRA’s action, the City Council must approve and certify the HRA levy to Sherburne County by September 30, 2019. Background/Discussion Revenues The budget proposes a balanced budget of the operating levy at approx. 0.0123% of estimated market value. The state caps an HRA operating levy at 0.0185% of estimated market value. The 2020 HRA tax levy revenue is based on Sherburne County’s estimated market value of $2,962,252,700 and is expected to generate taxes of $362,250 and $8,000 in interest income. Expenditures The proposed 2020 budget was developed with the goals and action steps outlined in the 2017-2020 HRA/EDA Strategic Plan, the Mississippi Connections Downtown Plan, and the City Vision & Goals. Major initiatives from these documents include:  Rehabilitating at least 11 properties by utilizing the HRA Housing Rehabilitation Loan Program.  Allocating $180,000 to rehabilitate target areas of the city which will be developed through coordination of the HRA and Center for Energy and Environment (CEE).  Allocating $5,000 to fund a downtown permanent public fixture policy to purchase plant hangers on the new light poles. Staff requests Commission direction to fund watering/maintaining the plantings in 2020, which is estimated to cost $8,000 for additional parks staffing. Major Changes Direction from the budget workshop included the following changes: At the August 5, 2018, HRA budget workshop, the HRA directed staff to maintain a balanced rate to reduce the draw down of reserves for the 2020 budget and to fund new revolving loan programs. Unspent funds at year end stay in the HRA fund for future use/projects by budget amendment. As of August 28, 2019, the HRA has a cash balance of $944,622.35. The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Financial Impact The expenditure budget is $370,250. Attachments  Resolution Establishing the HRA Levy for Collection in Year 2020  2020 HRA Goals and Performance Measures  Proposed 2020 Budget Detail Spreadsheet  2017-2020 Strategic Plan  DT Permanent Fixture Policy N:\\Departments\\Community Development\\Economic Development\\HRA\\Administrative\\Agenda\\2019\\09-03-2019\\7.2 sr 2020 Budget.docxDocument2 Resolution 19-_____ A Resolution of the City of Elk RiverHousing and Redevelopment Authority Establishing the Tax Levy for the Elk River Housing and Redevelopment Authority for the City of Elk River, Minnesota WHEREAS,Minnesota Statutes, Section 469.033, Subdivision 6, authorizes the Housing and Redevelopment Authority to levy an amount not to exceed .0185 percentof the estimated market value within the city to be used for housing and redevelopment purposes; and, WHEREAS,the Elk River Housing and Redevelopment Authority anticipates expenditures in 2020 for various housing and redevelopment activities. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: The Housing and Redevelopment Authority requests the City Council of the City of Elk River,levy a tax in the amount of $362,250 for the benefit of the Authority to be used as provided by Minnesota Statutes. th Passed and adoptedthis 3 day of August, 2019. Larry Toth, Chair ATTEST: Amanda Othoudt, HRA Executive Director Division Performance Measures & Goals for 2020 Division:Housing and Redevelopment Amanda Othoudt Completed by: 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 Promote a Vital DowntownStreet Corridor. Continue to promote the permanent fixture 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 Enhance redevelopment opportunities for C/I propertiesC/I properties. Work with the building department to identify properties eligible for the blighted properties C/I program 2020BUDGETDETAILSHEET Dept:Housing & Redevelopment Authority Acct.2019 BUDGET2020 BUDGET 201620172018 Explanation/Detail of Supplies or Services No.DetailTotalDetailTotal ActualActualActual REVENUES: 3111Property Taxes285,831290,146290,054316,450362,250 3322MV Credit163164152-- 3414Development Fee2,000---- 3621Interest Income8,0818,66410,2008,0008,000 3629Miscellaneous Revenue-7--- TOTAL HRA REVENUES296,075298,981300,406324,450370,250 EXPENDITURES: PERSONAL SERVICES 4101Regular Pay56,38159,91465,18467,90071,050 4104PERA4,2924,4944,8895,1005,350 4105FICA3,5453,7164,0354,2004,400 4107Medicare8298699441,0001,050 4108Insurance7,1577,79410,29210,80011,200 4109Workers Comp278270315350350 TOTAL PERSONAL SERVICES72,48277,05785,65989,35093,400 SUPPLIES 4201Office Supplies4942--- (shared with EDA)-- 4219General Supplies---5,0005,000 Downtown permanent fixtures5,0005,000 TOTAL SUPPLIES4942-5,0005,000 OTHER SERVICES & CHARGES 4304Legal Fees1,9783,9233,3945,0005,000 Misc.5,0005,000 4319Other Professional Services-8,52523,01610,00023,050 Downtown Plan implementation10,000 CEE23,050 4322Postage2075202502503,5003,500 4331Travel, Conferences & Schools2,0211,210596500200 MREJ - Housing Seminars500200 4349Advertising/Marketing6,3289,61210,51213,90011,200 Housing Program Marketing Materials - printing6,5002,500 Holiday Cards - Expanded Area5001,800 HRA/EDA Shared Website5,7005,700 Lead Forensics - Split between HRA/EDA1,2001,200 4359Publishing125552637150250 Public hearing notices150250 4361Insurance-539241,2003,500 Property insurance 1,2003,500 4389Utilities -334243600600250250 4401Building Repair/Maint. Services-79,8483,9303,2004,000 Lawn/snow removal 3,2004,000 4409Contractual Services7,95216,80011,67550,000180,000 Blighted Properties Program Funding Elk River HRA Rehab Program50,000180,000 - 4433Dues & Subscriptions237237237250250 Downtown Spotlight250250 4437Property Taxes -6295,7617,0007,0004,4504,450 4440Miscellaneous75,311-354,197103,050- Property acquisition103,050- TOTAL OTHER SERVICES & CHARGES93,972121,798415,142195,100235,650 TRANSFERS OUT35,00036,200 4721General Fund24,75024,75030,00031,50032,700 4735Economic Development Authority (shared expenses)3,5003,5003,5003,5003,500 TOTAL HRA EXPENDITURES194,753227,147534,301324,450370,250 REVENUES OVER/(UNDER) EXPENDITURES101,32271,834(233,895)-- 8/29/2019 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 171FAST 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 171Focused 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 Downtown Permanent Fixture Policy 1 Downtown Permanent Public Fixture Policy Purpose The Elk River Housing and Redevelopment Authority (the “HRA”) recognizes the need for appropriate permanent fixtures available for general public use in order to maintain a safe, clean, and accessible downtown area to preserve the vitality of the business district and prevent the emergence of blighting conditions. Definitions “Downtown area” refers to the area designated “DD” in Exhibit A. “Permanent public fixtures” are fixtures placed on a non-temporary basis for general public use and includes, without limitation, light poles, other lighting, benches, planters, trash and recycling receptacles, and bicycle racks. Budget The HRA shall set aside a portion of its budget each year for the purposes of acquiring, installing, and maintaining permanent public fixtures in the downtown area. Expenditures The HRA shall determine what expenditures are made for permanent public fixtures in the downtown area. To ensure the needs of the downtown area are being met, the HRA will accept recommendations and requests for specific permanent public fixtures from the Downtown River’s Edge Association(“DREA”). In determining how to allocate its downtown area permanent public fixture budget, the HRA may review the recommendations and requests of DREA. Requests and recommendations made by DREAare for advisory purposes only. Whether the requested or recommended expenditures are made is solely the decision of the HRA. Expenditures may be subject to city approval and/or public bidding laws as applicable. 2 Exhibit A Map of Downtown Area 3 Downtown Permanent Fixture Policy Policy History Adopted by: On (date) Item # HRAAugust 2, 20187.2 4