08-05-2019 HRA MINCKY
Elk
k.
River
Members Present:
Members Absent:
Regular Meeting of the Elk River
Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, August 5, 2019
Chair Larry Toth, Commissioners Denny Chuba, Michelle Eder, Louise
Kuester, and Nate Ovall
None
Staff Present: Economic Development Director Amanda Othoudt, Economic
Development Specialist Colleen Eddy, and Deputy Clerk Jessica Miller
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 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
August 5, 2019
S. 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.
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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.
Commissioner Chuba questioned if property owners for along 3rd 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 Ova.11 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
August 5, 20]9
Page 3
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 , Jessica Miller.
Tina Allard, City Clerk
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La Toth, C hair
Housing & Redevelopment Authority