11-04-2019 HRA MIN City of
elk Regular Meeting of the Elk River
River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, November 4, 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 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 5:30 p.m. by Chair Toth.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
III3. Consider November 4, 2019, Agenda
Motion by Commissioner Chuba and seconded by Commissioner Ovall to approve
the November 4,2019, HRA agenda.
Motion carried 5-0.
4. Consent Agenda
Moved by Commissioner Ovall and seconded by Commissioner Chuba to approve
the November 4,2019, consent agenda as follows:
4.1 October 7,2019,minutes.
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.
Motion carried 5-0.
5. Open Forum
No one appeared for Open Forum.
III
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November 4,2019
6. Public Hearings •
There were no public hearings.
7.1 HRA Housing Rehabilitation Loan Program Update
Ms. Othoudt presented the staff report.
Commissioner Eder asked if the house was currently on the market and if there was equity
to pay both mortgages once the sale went through.
Ms. Othoudt stated the home is not currently on the market but the property owners are
working towards that. She stated she will verify if there's enough equity to cover the
amounts of both mortgages.
Commissioner Eder asked about when payments are due and how much of a late fee is
charged.
Ms. Othoudt stated payments are typically due on the 1st of each month and a late payment
charged of 5%of the payment.
Commissioner Eder asked if the homeowner who is making their payments on the last day
of the month is paying a late fee.
Ms. Othoudt stated she will check on that. •
Chair Toth asked if the amount due for homeowner who is 150 days late includes late fees.
Ms. Othoudt stated that information doesn't show up on the loan report detail. She will have
to verify.
Commissioner Ovall stated the homeowner who is paying at the end of the month may want
to make an extra month's payment so they're a month ahead to avoid a late fee. He stated
he would prefer that option or amend their payment due date.
Ms. Othoudt stated this homeowner recently amended their repayment agreement due to a
divorce,and therefore that may have caused the late payments.
She will send out an email with new information as it becomes available regarding both late
loans.
HRA recessed at 5:38 p.m. in order to go in to work session. The meeting reconvened at 5:42 p.m.
8.1 Blighted Properties Discussion
Ms. Eddy presented a PowerPoint presentation about the city of Richfield redevelopment •
program called Richfield Rediscovered. She explained their funding source comes from
Housing and Redevelopment Minutes Page 3
November 4,2019
Spooled TIF monies from the Best Buy redevelopment project. For the Lot Sale Program, the
city's focus was on older small substandard homes that had been built in the 50s and
appeared to require maintenance or remodeling. The homes were typically vacant.The city
purchases the property after an inspection deems the property substandard and an RFP
process occurs for anyone to purchase the house/lot.The price of the property is
determined by an appraisal. Then whoever purchases the property works with a builder
chosen by the city and demos the property to build a 3 bedroom/2 bath/2-car garage home.
The builder is then credited$10,000 from the city for demolition costs,with those funds
coming from the pooled TIF monies. Ms. Eddy stated Richfield has completed 150 homes
using this process.
Ms. Eddy outlined the Development Credit Program where a builder and buyer enter into a
purchase agreement contingent on HRA approval and sub plans for approval by the HRA.
Once approved,they demolish the existing home and construct a new home for a$50,000
credit by the HRA.
The HRA discussed the current home stock in Elk River and what properties could be
considered substandard.Ms. Othoudt stated around 20-30 homes in the city that would be
potential substandard homes but that was only based upon a visual inspection during a
recent police ride-along. She indicated homes would typically require an inspection to
determine the true condition of the home.The HRA discussed if there are any older housing
developments that have a cluster of homes in need of repair.
• The HRA discussed what type of programs currently offered and what parts of other
programs reviewed would best benefit the housing stock of Elk River. It was noted the HRA
doesn't purchase any properties for resale,which is one main difference in what other
communities offer.Another difference is allowing builders to purchase homes for
remodel/rebuild/resell.
It was the consensus of the HRA to review the city's current Blighted Properties policy and
rework it to allow builders to purchase homes. Ms. Othoudt will bring the policy back at a
future meeting for review and evaluation against the HRA's long term goals.
9. Adjournment
Chair Toth adjourned the meeting at 6:22 p.m.
Minutes rep y Jennifer Green.
Tina Allard,City Clerk
• L T ;Chair
Housing&Redevelopment Authority