10-02-2006 HRAMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, OCTOBER 2, 2006
Members Present: Chair Wilson, Commissioners Kuester (5:03 p.m.), Toth, Lieser, and Motin
Staff Present: Community Development Director Scott Clark, Director of Economic
Development Catherine Mehelich, and Recording Secretary Tina Allard
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 October 2. 2006 HRA &-enda
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
MOTIN TO APPROVE THE OCTOBER 2, 2006, HRA AGENDA AS
PRESENTED. MOTION CARRIED 4-0.
3. Consider Consent A1;:enda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. AUGUST 7, 2006 REGULAR MINUTES
3.2. SEPTEMBER 13, 2006 SPECIAL MINUTES
3.3. CHECK REGISTER
3.4. REVENUE/EXPENDITURE REPORT
3.5. BALANCE SHEET
MOTION CARRIED 4-0.
4. Qpen Mike
There was no one present for Open Mike.
5. Downtown Revitalization Project Update
Ms. Mehelich provided an update of the construction progress for the Bluff, Jackson, and
park project. She stated utility work began on October 2 and Main Street will be closed for
three weeks.
Ms. Mehelich provided an update on communication and marketing activities. She stated the
"Open for Business" advertising campaign has been reinstated during the road closure of
Main Street and the Jackson Avenue realignment.
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October 2, 2006
Page 2
Ms. Mehelich stated the Council has directed staff to complete a parking analysis and to
provide a cost and design analysis for a parking ramp. She further stated the Council directed
staff to draft a micro loan or grant policy for downtown businesses that are struggling during
the construction period.
6. Consider Directinv Staff to Proceed with the Agluisition of Properties Described as 716 and
720 Main Street
Ms. Mehelich stated staff has been working on a purchase agreement with Houlton
Investment Company for the purchase of the properties located at 716 and 720 Main Street.
She stated the seller is in general agreement with the terms of the purchase agreement and
they would like to close by December 22, 2006. She stated that according to state statute,
prior to the HRA acquiring these properties, they must have a redevelopment plan approved
by the City Council.
Chair Wilson expressed concern with the timing of purchasing these properties and the
Council's request for the parking analysis. He stated he doesn't want the ERA to be at odds
with the Council by purchasing these properties prematurely.
Mr. Clark stated the parking analysis will focus mostly on short-term parking issues during
the construction period. He stated the city won't know the long-term parking issues until
construction is completed downtown and there is full lease out of the buildings. He stated a
third phase in the longer -term future of parking issues will be further downtown
redevelopment.
Mr. Clark stated the HRA should view the purchasing of these properties as an investment
that will be utilized in 5-10 years possibly as a parking ramp. He stated if the HRA were to
wait, they may have to use eminent domain to acquire them in the future which would cost
substantially more money.
Commissioner Motin stated he believes Council is comfortable with the idea of acquiring
these properties. He stated even if a parking ramp is needed now, it may not be viable
because of the existing meat market. He stated the city most likely wouldn't want to use the
new eminent domain laws. Commissioner Motin questioned if any inspections have been
completed on these properties.
Ms. Mehelich stated an environmental inspection has not been completed. She stated it is
possible there may be asbestos in the buildings due to the year they were built but there is no
conclusive evidence at this time. She stated the building official will complete an inspection
of the buildings. She stated the purchase agreement is drafted with an "as is" clause on the
buildings.
Mr. Clark stated if the HRA purchases these buildings they will need to decide what to do
with them. He reviewed a few possible options below.
■ Let the current lease with existing tenant expire and then tear down the buildings
■ Leave the buildings up and lease them out
Chair Wilson stated he is unsure how much the city wants to be in the leasing/building
management business.
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October 2, 2006
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Commissioner Motin concurred. He stated there are too many unknowns right now due to
the parking analysis. He stated another option is to tear the buildings down and to use the
area for ground level parking.
The Commission requested a prepayment clause be included in the contract for deed in case
the city may want to tear the buildings down prior to when the final mortgage payment is
due.
Mr. Clark suggested staff bring a more formal purchase agreement for approval to the HRA
at its December meeting.
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
MOTIN TO APPROVE "IN GENERAL TERMS" THE DRAFT PURCHASE
AGREEMENT AND TO FORMALLY ACCEPT AND FINALIZE IT IN
DECEMBER. MOTION CARRIED 5-0.
7. Formalize Ret�uests to Council for Completion of a Downtown Redevelo�?ment Plan
Ms. Mehelich stated the HRA should formalize its request to Council for preparation of the
redevelopment plan and appointment of a taskforce. She stated this taskforce would be for
an expanded downtown redevelopment area and not the core downtown. She reviewed the
composition of the taskforce.
Commissioner Toth stated he would like to see residents who are not on any boards on the
taskforce and suggested the Council may be able to suggest names.
Commissioner Wilson stated it is important to have resident representatives on the
taskforce.
Commissioner Motin stated that outgoing Councilmember John Dietz may be an option for
serving as a resident representative on the taskforce.
Commissioner Motin stated the City Council would like Elk River residents to be given a
preference and that Parks & Recreation Commissioner Anderson is not an Elk River
resident. He suggested offering an alternate member to the Council.
Commissioner Kuester stated she doesn't see any issues with Mr. Anderson serving on the
taskforce because he works in Elk River and is as much a representative as the business
people. She stated even though Ms. Nadeau is on the HPC, she would still be good as the
resident representative.
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
LIESER TO:
1. REQUEST THE CITY COUNCIL AUTHORIZE A REDEVELOPMENT
PLAN BE PREPARED FOR THE "GREATER" DOWNTOWN ELK
RIVER AREA.
2. REQUEST THE CITY COUNCIL APPOINT THE TASKFORCE AS
OUTLINED IN THE STAFF REPORT WITH THE EXCEPTION THAT
AN ALTERNATE MEMBER OF THE PARKS AND RECREATION
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October 2, 2006
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COMMISSION BE CONSIDERED FOR THE PURPOSE OF
PREPARING THE REDEVELOPMENT PLAN.
3. CONTRACT WITH EHLERS AND ASSOCIATES FOR FACILITATION
OF THE REDEVELOPMENT TASKFORCE MEETINGS.
MOTION CARRIED 5-0.
8. Information -Sale Listing for Property Described as 356 Jackson Avenue
Ms. Mehelich provided information regarding a newly listed property at 356 Jackson
Avenue. She stated the HRA would have limited resources to purchase this property.
Commissioner Toth stated the property should be left on the market to gauge the private
market interest in it.
The Commission indicated they had no interest in purchasing the property at this time.
9. Other Business
There was no other business.
10. Adjournment
There being no further business, Chair Wilson adjourned the meeting of the Elk River HRA
' at 5:40 p.m.
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Tina Allard
Recording Secretary