4.1. DRAFT HRA MINUTES 03-02-2020
Regular Meeting of the Elk River
Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, February 3, 2020
Members Present: Chair Larry Toth, Commissioners Denny Chuba, Michelle Eder, Nate Ovall,
and Jayme Swenson
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt, Economic
Development Specialist Colleen Eddy, and Sr. Administrative
Assistant/Recording Secretary Jennifer Green
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 February 3, 2020, Agenda
Ms. Othoudt added an item to the agenda: 8.2 - Main and Gates Update.
Motion by Commissioner Ovall and seconded by Commissioner Chuba to approve
the February 3, 2020, HRA agenda, with the above added item.
Motion carried 5-0.
4. Consent Agenda
Moved by Commissioner Chuba and seconded by Commissioner Eder to approve
the February 3, 2020, consent agenda as follows:
4.1 January 6, 2020, 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.
4.5 Attendance Policy
4.6 Amendment to Preliminary Development Agreement with Modern
Construction of Minnesota, Inc.
Motion carried 5-0.
Housing and Redevelopment Minutes Page 2
February 3, 2020
-----------------------------
5. Open Forum
No one appeared for Open Forum.
6. Public Hearings
There were no public hearings.
7.1 Election of Officers and Establish Terms
Ms. Othoudt presented the staff report.
Motion by Commissioner Chuba and seconded by Commissioner Ovall to continue
the current assignments for the next year as follows:
Chair: Larry Toth
Vice-Chair: Denny Chuba
Secretary: Michelle Eder
Executive Director: Amanda Othoudt
Motion carried 5-0.
7.2 Designation of Commitment Assignments
Ms. Othoudt presented the staff report.
It was the consensus of the HRA for Chair Toth and Commissioner Eder to continue
serving on the Joint Finance Committee.
7.3 HRA Housing Rehabilitation Loan Program
Ms. Othoudt presented the staff report.
Commissioners Ovall and Eder stated the discussions and plans for the two loans as
outlined in the staff report seem reasonable.
7.3 HRA 2019 Annual
Ms. Othoudt presented the 2019 Annual Report.
Chair Toth asked how long the Maxfield Research & Consulting would take to complete the
housing study.
Ms. Othoudt stated the study, contracted by Sherburne County, will take approximately six
months to complete.
HRA recessed at 5:50 p.m. in order to go in to work session. The meeting reconvened at 5:55 p.m.
Housing and Redevelopment Minutes Page 3
February 3, 2020
-----------------------------
8.1 Blighted Properties Residential Forgivable Loan Program Discussion
Ms. Othoudt began the discussion by addressing questions from last month’s review of the
draft program policy. She stated the question remains if contractors can qualify and be
eligible for this program as well as homeowners and how can this program seek ways to
accommodate both.
Ms. Othoudt stated she spoke with the building official to determine if city building
inspectors could provide the HRA with a home inspection to determine if it is structurally
substandard. The building official indicated they do have the ability to do the inspection.
However, does the HRA want the city to inspect these properties and who is the city
representing: the homeowner, contractor, or the HRA, and at what capacity are they doing
the inspection. She stated currently the only way to do this type of inspection is to pull either
a demo permit or a building permit and they would need to create an additional permit or
application to trigger the structural substandard inspection. They are still determining the
cost. Ms. Othoudt stated the other option would be to hire a licensed home inspector.
Commissioner Eder asked if the contractor or the homeowner would hire a licensed home
inspector.
Commissioner Chuba stated to his knowledge there are no licensed home inspectors in MN
because they aren’t certified by a legal government agency. He asked about using a structural
engineer.
Commissioner Eder stated in a traditional home purchase, a homeowner hires a home
inspector to provide an inspection and a report which provides valuable information.
Commissioner Ovall stated it’s for the benefit of the HRA to define what is substandard for
a home to qualify for this program. He stated the inspection is just for the city’s use and
purpose and stated he felt a city building inspector could do the inspection and it could be as
simple as an internal work order. Ms. Othoudt stated a process would need to be put
together as a mechanism doesn’t currently exist nor do they have a fee proposed.
Commissioner Eder stated when the city did the inspections on the Main and Gates homes,
a city building inspector was the one who inspected their condition to determine if they
could be a rental property. Ms. Othoudt stated that was a rental inspection which is different
then what this inspection would be.
It was the consensus of the HRA to charge a fee for the inspection.
Ms. Othoudt updated the HRA that sweat equity can be allowed.
The HRA continued to review the draft policy:
Terms –the loan demolition costs under section 1 raised the question by the attorney of who
is obligated to repay the loan, the property owner (current or future) or the contractor. The
HRA discussed the intent of the program and who is receiving the program incentive, noting
it’s technically tied to the homeowner unless a contractor owns the property with the
Housing and Redevelopment Minutes Page 4
February 3, 2020
-----------------------------
intention of reselling. Commissioner Chuba stated perhaps once the contractor gets
involved, the forgivable loan should be turned into a grant.
The HRA discussed restructuring this program as a grant. Because of the numerous
questions surrounding the intention of the program and who should receive the benefit and
how to craft the policy, it was the consensus of the HRA to hold a special work session with
the attorney present to review and craft a policy that assists the city in redevelopment of
blighted properties.
8.2 Main and Gates Discussion
Ms. Othoudt asked the HRA if they would think about considering including an additional
property to the TIF district being proposed for the Main and Gates area. The property is
PID#75-401-0150 with an address of 406 Main St. NW.
After discussion, it was the consensus of the HRA to support including PID#75-401-0150
in the proposed TIF district for the Main and Gates project.
9. Adjournment
Chair Toth adjourned the meeting at 6:30 p.m.
Minutes prepared by Jennifer Green.
_____________________
Tina Allard, City Clerk
_____________________
Larry Toth, Chair
Housing & Redevelopment Authority