09-13-2006 HRASPECIAL WORK SESSION MEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
WEDNESDAY, SEPTEMBER 13, 2006
Members Present: Chair Wilson, Commissioners Thompson, Toth, Lieser, and
Motin
Staff Present: Director of Economic Development Catherine Mehelich, Community
Development Director Scott Clark
Others Present: Stacie Kvilving, Ehlers & Associates
The meeting was called to order at 6:00 p.m. by Chair Wilson.
Director of Economic Development Catherine Mehelich provided background for the discussion.
She stated that over the past year staff and the HRA have been working to develop a redevelopment
plan for the area downtown north of Highway 10. She stated that as staff has been analyzing the
land use, market potential and financial feasibility of this area it became evident that the
redevelopment of downtown cannot be looked at in its individual areas. She gave the example of the
development of 20,000 sf of commercial/retail space in the core area of downtown significantly
reduces the market potential for this land use to be replicated north of Highway 10 due to
absorption. She introduced Stacie Kvilving of Ehlers & Associates.
Ms. Kvilving provided an overview of the following issues to the HRA:
• reasons to redevelop
• barriers to redevelopment
• reasons for a redevelopment plan
• redevelopment planning process
• key elements of the plan
Commissioner Toth stated his vision is to take the planning process slowly and not rush into another
redevelopment project. He stated his concern is about timing and market readiness. He stated we
need to be careful about how the redevelopment plan is presented to the public because most won't
understand that it is a concept plan rather than an actual. development.
Community Development Director Scott Clark stated that staff recommends that Ehlers &
Associates undertake the meeting facilitation and city staff prepare the background work and plan.
He stated that staff can bring an estimate for this service for the HRA's consideration at its next
meeting.
Commissioner Motin stated a concern for how the new eminent domain legislation will impact the
HRA's ability to undertake redevelopment. Mr. Clark responded that the new law has a significant
impact but that cities still need to plan, and consider that eminent domain will be an expensive and
virtually unusable tool in redevelopment.
Mr. Clark stated one of the first steps of the taskforce will be to identify the boundaries of the
redevelopment planning area, for example there may be an opportunity to extend the west limits to
include the Handke School.
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Commissioner Lieser asked how long after the six months of taskforce meetings does it take to write
and approve the redevelopment plan. Mr. Clark responded that the plan is drafted by staff
throughout the entire process for continual refinement by the taskforce and that essentially by the
seventh month the plan is ready for approval.
Commissioner Kuester asked the commission if there is agreement on the need to redevelop the
entire area. Mr. Clark stated that people have different perceptions of the word "redevelopment"
and that a redevelopment plan addresses opportunities for new development, redevelopment of
blighted property, as well as opportunities for preservation and rehabilitation.
Chair Wilson asked how the HRA feels about using a taskforce structure to accomplish this plan.
Commissioner Lieser stated it is a great idea to bring in people who have concerns and allow them to
express their opinions. She stated she would definitely vote in favor of the taskforce. She asked who
pays for Ehlers facilitation and how much it will cost. Mr. Clark stated that this would be an HRA
expense which has been budgeted within professional services, and that staff will bring an estimate
back for HRA approval.
Commissioner Kuester stated she has concerns about using a taskforce based on her previous
experiences. She used the example of the recent comprehensive plan taskforce. She stated it will be
important to have more representation from people who are informed about the process, avoid
groups who are there for their individual motives and to limit the number of people. Chair Wilson
stated that the composition of the taskforce is a concern to him. Commissioner Kuester stated the
taskforce should have at least 3 members of the HRA on it.
The following taskforce composition was discussed:
• 4 HRA Commissioners (not including Council representative)
• 1 Planning Commissioner
• 1 Heritage Preservation Commissioner
• 1 Park & Recreation Commissioner
• 1 Economic Development Authority Commissioner
• 2-3 business leaders
• 2 residents (1 from downtown and 1 from at -large)
It was discussed to hold the meetings monthly after the regular HRA meeting.
Ms. Mehelich stated that staff will formalize the next steps necessary to proceed for the HRA to act
upon at its October meeting.
The meeting adjourned at 7:33 p.m
Respectfully submitted,
Catherine Mehelich
Executive Director