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4.1. HRA DRAFT MINUTES (2 SETS) 05-04-2020 City of Elk Virtual Meeting of the Elk River River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, April 6, 2020 (Due to COVID-19 Pandemic) Members Present: Chair Larry Toth, Commissioners Denny Chuba,Michelle Eder, and Jayme Swenson Members Absent: Commissioner Nate Ovall At 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 o 'e Elk River Housing and Redevelopment Authority was called to order at 5:35 p.m. by Chair Toth. 2. Pledge of Allegiance The Pledge of Allegiance was recite . 3. Consider April 6, 2020,Agenda Ms. Othoudt added item 7.4 to the HRA agenda—419 3rd Street. Motion by Commissioner Eder and seconded by Commissioner Chuba to approve the April 6, 2020, HRA a enda with the addition of item 7.4. otion carried 4-' 4. Consent Agenda Moved by Commissioner Swenson and seconded by Commissioner Eder to approve the April 6, 2020, consent agenda as follows: 4.1 Meeting minutes: March 2, 2020, Regular March 2, 2020, Closed April 3, 2020, 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. Motion carried 4-0. Housing and Redevelopment Minutes Page 2 April 6,2020 ----------------------------- S. Open Forum Due to the meeting being virtual, there was no open forum. 6. Public Hearings There were no public hearings. 7.1 HRA Housing Rehabilitation Loan Program Ms. Othoudt presented the staff report. 7.2 Interfund Loan Resolution for Main and Gates Ms. Othoudt presented the staff report. Motion by Commissioner Eder and seconded by Commissioner Chuba to approve Resolution 20-01 an interfund loan authorizing advance of funds to be reimbursed with future tax increment as outlined in the staff report. Motion carried 4-0. 7.3 Main and Gates Redevelopment TIF Anal sis Ms. Othoudt presented the staff report:) Motion by Commissioner Swenson and seconded by Commissioner Chuba to approve the Main and Gates Redevelopment TIF Analysis proposal by LHB Corporation as outlined in the staff report with costs not to exceed $5,600. Motion carried 4-0. 7.4 419 3"d Street Purchase Ms. Othoudt presented the staff report and provided copies of the staff report,purchase agreement, and resolution for 419 3rd Street,with a closing date on or before June 1, 2020. Motion by Commissioner Eder and seconded by Commissioner Swenson to approve Resolution 20-02 authorizing the execution of a purchase agreement for 4193 d Street as outlined in the staff report with a closing date on or before June 1, 2020. Motion carried 4-0. 8. Adjournment Chair Toth adjourned the meeting at 5:50 p.m. Housing and Redevelopment Minutes Page 3 April 6,2020 ----------------------------- Minutes prepared by Jennifer Green. Tina Allard, City Clerk Larry Toth, Chair Housing& Redevelopment Authority City of Elk Special Virtual Meeting of the Elk River River Housing and Redevelopment Authority Held at the Elk River City Hall Tuesday, April 14, 2020 (Due to the COVID-19 Pandemic) 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 Ise, Pursuant to due call and notice thereof,the meeting of the Elk River Housing and Redevelopment Authority was called to ordby Chair Toth and roll call was taken. 1 406 Main Street Purchase Ms. Othoudt presented the staff report. She outlined details of the purchase agreement documents between the HRA and the property owner, Cora Smith,Trustee,Tim Smith, and the current tenant pertaining to the purchase of 406 Main St. NW,in the amount of 4f230 h , and a $5,000 escrow payment. he explained the property is currently occupied by tenant CRAG Enterprises LLC; erefore,negotiations required different rules and regulations for purchasing that fall under the Federal Property Relocation Act. The regulations allow CRAG Enterprises LLC,the sole tenant of the property, to remain on the premises until CRAG provides the HRA with notice of vacation. The sale closing date was set for June 30, 2020,with the intent the tenants will then vacate the premises. $5000 in escrow funds will be held in an interest-bearing account which allows the HRA some flexibility with the tenant when they vacate the property, as the HRA can use the funds towards getting the property cleaned up as well as pay any overdue bills. Ms. Othoudt explained the tenants have signed a waiver of receiving relocation funds as outlined in the Property Relocation Act. Commissioner Ovall asked for clarification of the signing of a waiver of relocation benefits within the purchase agreement and wondered if the HRA has any recourse if the tenants Housing and Redevelopment Minutes Page 2 April 14,2020 ----------------------------- don't vacate. He questioned if the HRA has the authority to re-enter the property after closing. Ms. Othoudt stated she had detailed discussions with HRA attorneys to work through this agreement. She stated the tenants are waiving their relocation rights but the HRA is still required under the Federal Relocation Act to pay the tenants if the HRA forces relocation from the property. Chair Toth asked when they would be exiting the property. Ms. Othoudt stated they have briefly discussed this with the tenant,noting the HRA has to allow them to stay on the premises to comply with the Federal Relocation Act. Commissioner Eder asked if the HRA can collect rent during the month they are occupying the property under the Federal Relocation Act after purchasing the property. Ms. Othoudt stated the HRA can collect the same amount of rent from the tenant provided the tenant remains on the premises. However, the agreement that they are acting on today allows them to remain on the property until they were able to relocate. She stated the HRA will allow them to stay on the premises as long as they want to. Chair Toth asked if the tenants had a lease with the property owners. Ms. Othoudt stated there were no leases or rental agreements on the property. Chair Toth asked then what recourse does the HRA have if the tenants want to remain on the property indefinitely. Ms. Othoudt stated if theecicles they want to occupy the property before the tenant vacates the property,we would then be obligated to pay relocation fees. She is requesting giving the tenants a 30-day notice but they cannot force them out of their property. Commissioner Ovall wanted to ensure the HRA had a mechanism to engage in if we needed the tenants to vacate the property sooner,and in doing they can enter in relocation agreement at that time�' Commissioner Eder asked if the tenants were still occupying the property on July 1 could the HRA collect monthly rent. Commissioner Ovall stated that stipulation would need to be in the agreement up front. Ms. Othoudt stated the current deal is the tenant can stay in the property without paying rent. Commissioner Eder asked if this property was going to have its house and garage moved. Housing and Redevelopment Minutes Page 3 April 14,2020 ----------------------------- Ms. Othoudt indicated a house mover is interested in purchasing this house and garage for $5,000 and will want to move it once the HRA is in possession of it and the tenants have vacated the property. She stated this will save the HRA on demolition costs. Commissioner Swenson asked if there was a connection between the property owner and the tenant. Ms. Othoudt stated the owner of the trust is the mother of CRAG Enterprises, a family owned business. Moved by Commissioner Eder and seconded by Commissioner Chuba to adopt Resolution 20-03 authorizing the execution of a purchase agreement for 406 Main Street, Elk River, MN, as outlined in the staff report. Motion carried 5-0. 3. Adjournment Chair Toth adjourned the meeting at 3:24 p.m. Minutes prepared by Jennifer Green. 9' Tina Allard, City Cler Larry Toth, Chai Housing& Redev6 6 anent Authority