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02-03-2020 HRA MIN tlkCity of Regular Meeting of the Elk River 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 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. Ill3. 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. IllMotion 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. n 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.I 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 pr d by Jennifer Green. 4 • Tina Allard, i Clerk L Toth, air Housing&Redevelopment Authority •