03-06-2006 HRAMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MARCH 6, 2006
Members Present: Chair Wilson, Commissioners Kuester, Toth, Lieser and Motin
Staff Present: City Administrator Lori Johnson, Community Development Director Scott
Clark, Director of Economic Development Catherine Mehelich, Assistant
Director of Economic Development Heidi Steinmetz, Senior Planner Scott
Harlicker, and Recording Secretary Jessica Miller
1. Call MeetiN To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Housing and
Redevelopment Authority was called to order at 5:00 p.m. by Chair Wilson.
2. Consider March 6. 2006 HRA A , enda
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
MOTIN TO APPROVE THE MARCH 6, 2006, HRA AGENDA. MOTION
CARRIED 5-0.
Consider Consent Acrenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. FEBRUARY 6, 2006 HRA MINUTES
3.2. CHECK REGISTER
3.3. FEBRUARY 2006 REVENUE/EXPENDITURE REPORT
3.4. FEBRUARY 2006 BALANCE SHEET
MOTION CARRIED 5-0.
4. Open Mike
There was no one present for Open Mike.
Downtown Revitalization Project Update
Director of Economic Development Catherine Mehelich indicated that on February 28,
2006, the Amended and Restated Development Agreement by and between the City of Elk
River and MetroPlains Development LLC was completed and fully executed by the Mayor,
City Administrator, and Vern Hanson of MetroPlains. Ms. Mehelich stated that the next step
in the development process is for MetroPlains to close on its construction financing prior to
commencing construction on the Bluff Block.
Housing & Redevelopment Authority
March 6, 2006
Page 2
Vern Hanson, MetroPlains — explained that the language amendments to the
Development Agreement had to do with the multi -tiered financing for this project. Mr.
Hanson indicated that MetroPlains is currently in the process of reviewing the loan
documents and once that is completed, they will move into the loan closing. He stated that
they have executed purchase agreements on 32 residential units and additional agreements
are in the process. Mr. Hanson also indicated that MetroPlains has had serious discussions
with many potential commercial occupants but is not at liberty to share details.
Commissioner Toth questioned if the presale requirement on the commercial units has been
met. Mr. Hanson stated that yes, MetroPlains purchased the commercial portion of the
project.
Commissioner Toth questioned when MetroPlains anticipates closing on the financing and
the when construction will commence. Mr. Hanson indicated that construction on the Bluff
Block project should begin sometime between March 13 and April 15 and construction on
the Jackson Block may begin about thirty to ninety days after.
Commissioner Motin questioned how long after construction begins will the units be ready
for occupancy. Mr. Hanson indicated that it would be no more than 12 months.
Ms. Mehelich stated that the next Downtown Q&A will address the financing closing issues,
the development agreement, and scheduled construction dates and may be distributed in
April.
Commissioner Toth questioned how the traffic will be handled with both the two
MetroPlains projects and The Bank of Elk River project taking place consecutively. Ms.
Mehelich indicated that staff and the City Council have reviewed the construction staging
plans and that Fire Chief Bruce West has been designated as the city's public safety contact
for the downtown projects and he will make modifications to the safety and staging plans as
necessary.
Assistant Director of Economic Development Heidi Steinmetz stated that she, Police Chief
Jeff Beahen and Parks and Recreation Director Bill Maertz will be attending the Rivers Edge
Business Association meeting on Wednesday to discuss the new downtown park and the
public safety issues regarding the removal of parking spaces located within the future
entrance to the park.
Discuss Draft Amendments to Micro Loan Fund Polio
Director of Economic Development Catherine Mehelich indicated that the EDA is
considering amendments to its Micro Loan Fund Policy which provides loans for
manufacturing expansion and for the rehabilitation of downtown commercial buildings.
Ms. Mehelich indicated that the program has been utilized only twice for commercial
rehabilitation in the last ten years. She explained that staff has not been heavily marketing the
program because of the downtown project; not knowing which properties would be
affected. She stated that now that the downtown construction is set to begin, it would a
good time for the policy to be revised and for staff to begin marketing the program to the
downtown businesses. Ms. Mehelich reviewed the proposed amendments.
Housing & Redevelopment Authority
March 6, 2006
Page 3
Commissioner Kuester questioned if the buildings will be required to meet ADA
requirements if they are renovated using Micro Loan funds. Ms. Mehelich indicated that staff
will speak with the Building Department regarding this issue. She stated that the City of
Anoka ran into issues during their downtown renovation with some of the older buildings
not meeting fire code requirements and staff will contact them to see how their issues were
resolved.
Chair Wilson questioned the balance amount of the Micro Loan Fund. Ms. Mehelich stated
that the balance is approximately $800,000. She noted that most of the original Micro Loans
have been recently paid back to the city.
Chair Wilson questioned when the Micro Loan amounts were established. Ms. Mehelich
indicated that the loan amounts were set in the late 1990s. Chair Wilson stated that if the
loan amounts were increased from $50,000 to $75,000 the loans may be more attractive to
business owners.
Other Business
There was no other business.
8. Adj.ournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 5:36 p.m.
ssica Miller
Recording Secretary
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