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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. Housing & Redevelopment Authority Page 2 September 13, 2006 ----------------------------- 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