08-07-2006 HRAMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MOND", AUGUST 7, 2006
Members Present: Chair Wilson, Commissioners Kuester, Toth, Lieser and Motin
Staff Present: Community Development Director Scott Clark, Director of Economic
Development Catherine Mehelich, Parks and Recreation Director Bill
Maertz, and Recording Secretary Jessica Miller
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 5:00 p.m. by Chair Wilson.
2. Consider Au;�f:st 7, 2006 HRA Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE THE MAY 1, 2006, BRA AGENDA.
MOTION CARRIED 5-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
MOTIN TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1. JUNE 26, 2006 SPECIAL MEETING MINUTES
3.2. CHECK REGISTER
3.3. JUNE 2006 REVENUE/EXPENDITURE REPORT
3.4. JUNE 2006 BALANCE SHEET
3.5. JULY 2006 REVENUE/EXPENDITURE REPORT
3.6. JULY BALANCE SHEET
3.7. CALL SPECIAL HRA MEETING FOR SEPTEMBER 11, 2006 FOR
JOINT MEETING WITH EDA.REGARDING OVERVIEW OF
CHANGES TO EMINENT DOMAIN LAW
MOTION CARRIED 5-0.
4. O—
There was no one present for Open Mike.
5. Downtown Revitalization Proiect Update
Director of Economic Development Catherine Mehelich provided an update on the
Downtown Revitalization Project. Ms. Mehelich stated that Jackson Place received approval
from the Minnesota Housing Finance Agency to begin construction prior to financing
closing. She stated that closing on Jackson Place is anticipated to take place later this month.
Housing & Redevelopment Authority
August 7, 2006
Page 2
She explained that the contractors ran into a delay identifying some storm sewer and fire
hydrants that need to be relocated. Staff has confirmed that Highway 10 and Jackson will not
need to be closed to perform this relocation work, however, the signals may need to be
altered in order for this work to be completed.
Ms. Mehelich stated that the Bluffs of Elk River are well underway and on schedule.
Ms. Mehelich indicated that the blacktop on Main Street will be complete this week and all
preparations are being made for Main Street to reopen Friday, August 11 as planned. She
stated that the Bank of Elk River and the Bluffs of Elk River have negotiated a staging area
which should allow for fewer interruptions during construction. She stated that prior to this
agreement, the Bank did not have a staging area and this was expected to cause some traffic
disruptions during construction. She also indicated that the parking stalls will remain straight
M.
Commissioner Toth questioned if the utility delay pertained to information provided by the
city. Ms. Mehelich indicated that it did not and Flannery Construction is in the process of
discussing the issue with their engineer and surveyor to see where the miscommunication
occurred.
Commissioner Motin questioned if Chief Beahen has reviewed the straight in parking. Ms.
Mehelich indicated that he has and that the decision was made to continue parking as is so to
not confuse people with additional signage and parking changes.
Chair Wilson questioned how the traffic control downtown is working out. Ms. Mehelich
indicated that they perform a number of duties downtown and it is working out well.
Ms. Mehelich indicated that the City Council suggested changes to the River's Edge
Commons Park to keep it in budget and that project has been rebid. She stated that
depending on how the bids come back, the park could begin construction in September.
Ms. Mehelich reviewed the Downtown Redevelopment Team Structure.
5.1. Consider Appo g HRA Commissioner to EDA Finance Committee
Ms. Mehelich indicated that staff recently received an application for the Downtown
Rehabilitation Micro Loan program from Olde Main Eatery. She explained that typically,
Industrial Incentive Micro Loan Program applications are reviewed by the EDA Finance
Committee for recommendation of approval or denial to the EDA. Per the Micro Loan
Policy, Downtown Rehabilitation Financing Program loans are to be reviewed by an HRA
member in conjunction with the EDA Finance Committee.
The HRA appointed Commissioner Toth to serve as HRA representative on the EDA
Finance Committee.
5.2. Downtown Marketing and Communications U� date
Ms. Mehelich reviewed downtown marketing and communication issues. She indicated that
staff estimated that the HRA's 2006 budgeted publishing line item of $12,500 would
accommodate the remainder of this year's marketing/communication activities, but it
appears that it not the case. She explained that marketing and communications are critical
Housing & Redevelopment Authority
August 7, 2006
Page 3
during the current construction phase and staff will proceed with anticipated activities unless
otherwise directed by the HRA.
Commissioner Kuester questioned if staff has received any feedback on their
communication efforts. Ms. Mehelich indicated that she has not heard any negative
feedback. She stated that staff did not receive the cooperation they had hoped for on the
coupon insert so it will not be repeated.
Keith Holme, property owner Kemper Drug — thanked staff for attending the Rivers
Edge meetings and for their communication efforts.
Chair Wilson thanked Mr. Holme for allowing the "Open for Business" banner to be hung
on his building.
5.3. Consider Making Contribution toward Downtown MarketLm Special Event
Ms. Mehelich indicated that staff has been working with the River's Edge Downtown
Business Association to assist in additional marketing of the downtown businesses during
construction. She stated that the group is planning a sidewalk sales event and downtown
block party to be held Saturday, August 26, 2006. She explained that staff has been meeting
with Fred McCoy of McCoy's Pub to discuss details of the event, city application and
approval process, and to discuss street staging and signage needs. It is anticipated that the
City Council will consider approval of the special event request and liquor license extension
at its August 14 meeting.
She indicated that the group has requested the city's contribution for some city services such
as police security, barricades/signage/street cleaning, and portable bathrooms. She estimated
that the cost for these items would be approximately $1,700. She stated that in accordance
with the HRA's goal to assist in marketing the downtown businesses during the construction
phase, staff is recommending that the HRA consider making a contribution toward the
block party of up to $2,000. Ms. Mehelich indicated that staff is also recommending that the
HRA authorize up to $2,000 towards a grand opening event to be held in 2007 upon
construction completion.
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO MAKE A CONTRIBUTION OF UP TO $2,000
TO THE RIVER'S EDGE DOWNTOWN BUSINESS ASSOCIATION TO BE
USED TOWARDS THE DOWNTOWN BLOCK PARTY SPECIAL EVENT TO
BE HELD SATURDAY, AUGUST 26, 2006. MOTION CARRIED 5-0.
6. Update on Acquisition of Properties Described as 716 and 720 Main -Street
Ms. Mehelich stated that per the HRA's direction, staff commissioned for an appraisal to be
completed on properties located at 716 and 720 Main Street. She stated that the appraisals
are expected to be back later this week. She indicated that based on the results of the
appraisal, staff will undertake negotiations with the property owner, Houlton Investment
Company. It is anticipated that a draft proposal will be brought to the HRA at its September
meeting.
Commissioner Toth questioned if staff is getting ahead of themselves by beginning
negotiations as depending on what the appraisal comes in at, the HRA may chose to not
pursue the properties. Mr. Clark stated that staffs goal is to begin negotiations if the
Housing & Redevelopment Authority
August 7, 2006
Page 4
appraisal comes near the designated benchmark amount and if it comes back higher, staff
will seek HRA direction.
Chair Wilson requested that staff contact HRA members via email when the appraisal comes
back.
7. Downtown North of Highway 10 Redevelopment Plan Update
Ms. Mehelich indicated that staff has been drafting changes to the recent financial modeling
template to reflect the feedback received by the HRA. Staff will require additional feedback
and direction regarding the original premise and vision for this redevelopment area from the
HRA. She stated that an HRA worksession will be organized in September to discuss these
issues. Staff will email prospective dates to the HRA Commissioners.
8. Update on Sub -Committee exploring Sherburne Countv Economic Development Entity
Ms. Mehelich stated that at the City Council appointed Chair Wilson as the HRA
representative to serve on the sub -committee exploring Sherburne County Economic
Development Entity.
Chair Wilson indicated that the purpose of the sub -committee is to explore and recommend
the type of entity appropriate for a county economic development service provider. Chair
Wilson provided an update on the sub -committee.
Commissioner Toth questioned if the County will be in competition with the city for
economic development purposes. Chair Wilson indicated that the County will be partnering
with the city. He noted that there are townships in Sherburne County that have no economic
development authority and the County entity will help them.
9. Consider Year 2007 HRA Budget and Resolution Regarding Tax Levy
Ms. Mehelich reviewed the proposed 2007 HRA budget. She explained that HRA revenues
are estimated at 10% growth in market value for 2007. In addition, 2007 revenues include a
transfer -in from TIF District 16 in the estimated amount of $45,000 to repay the HRA for
eligible expenditures related to the King and Main TIF project.
Commissioner Toth questioned if the $2,000 for the grand opening event is included in the
proposed budget. Ms. Mehelich indicated that it is not but that the publishing budget could
be increased by $2,000 to include it.
MOTION BY COMMISSIONER TOTH AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE PROPOSED 2007 HRA
BUDGET AS AMENDED TO INCLUDE A CONTRIBUTION TOWARDS THE
2007 DOWNTOWN GRAND OPENING EVENT OF UP TO $2,000. THE
MOTION CARRIED 5-0.
MOTION BY COMMISSIONER TOTH AND SECONDED BY
COMMISSIONER LIESER TO APPROVE RESOLUTION NO.06-01
ESTABLISHING THE TAX LEVY FOR THE ELK RIVER HOUSING AND
REDEVELOPMENT AUTHORITY FOR COLLECTION IN 2007. MOTION
CARRIED 5-0.
Housing & Redevelopment Authority Page 5
August 7, 2006
10. Other Business
There was no other business.
11. Adjournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:16 p.m.
Jessica Miller
Recording Secretary
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