12-04-2006 HRAMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 4, 2006
Members Present: Chair Wilson, Commissioners Kuester, Lieser, and Motin
Members Absent: Commissioner Toth
Staff Present: Community Development Director Scott Clark, Director of Economic
Development Catherine Mehelich, Assistant Director of Economic
Development Heidi Steinmetz, and Recording Secretary Jessica Miller
Also Present: Future Councilmember Nick Zerwas
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 December 4, 2006 HRA Agenda
Discussion on the January 2, 2007 HRA meeting was added under other business.
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE THE DECEMBER 4, 2006, HRA
AGENDA AS AMENDED. MOTION CARRIED 4-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER LIESER AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. NOVEMBER 6, 2006 REGULAR MEETING MINUTES
3.2. CHECK REGISTER
3.3. NOVEMBER 2006 REVENUE/EXPENDITURE REPORT
3.4. NOVEMBER 2006 BALANCE SHEET
MOTION CARRIED 4-0.
4. Qpen Mike
There was no one present for open nuke.
5. Downtown Revitalization Project Update
Director of Economic Development Catherine Mehelich provided an update on the
downtown revitalization project. Ms. Mehelich stated that construction on the River's Edge
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December 4, 2006
Page 2
park is continuing, as is construction on the necessary underground work for the Jackson
parking ramp. She noted that the Bank of Elk River parking lot paving is complete.
Ms. Mehelich explained that staff is discussing snow removal and storage with the
downtown contractors. She stated that staff will also be discussing this issue at the next
River's Edge meeting.
Ms. Mehelich indicated that staff has received two inquiries on the new downtown loan
program.
Assistant Director of Economic Development Heidi Steinmetz distributed the downtown
revitalization vision publication. She stated that the purpose of the vision piece is to show
the public a vision of what the downtown revitalization project will look like once it's
completed. Ms. Steinmetz indicated that the vision publication will be distributed in the Star
News and was also distributed to downtown businesses for distribution during the Holiday
Open House.
Commissioner Motin questioned if the crane for the Jackson Block project will be contained
within the building so it does not interfere with traffic flow on Jackson. Community
Development Director Scott Clark indicated that staff has been advised that Flannery
Construction may request that Jackson Avenue go back to the original requested
configuration design. Chair Wilson questioned how long the original configuration would be
maintained. Mr. Clark stated that Flannery will be requesting the road be rerouted for four
weeks.
6. Consider_Api)roval of Purchase Areement
Ms. Mehelich indicated that staff is requesting final HRA consideration on the acquisition of
the properties located at 716 and 720 Main Street from Houlton Investment Company. Ms.
Mehelich outlined the terms of the purchase agreement as follows:
■ Purchase Price: $720,000 with a down payment of $216,000
■ 5-year contract for deed at 6% interest, semi annual payments with prepayment
being allowed without penalty
■ Closing date of December 22, 2006
■ HRA to assume the lease with OReilly Automotive at 720 Main Street and the lease
established with First National Financial Services at 716 Main Street
■ Condemnation and relocation are specifically not being authorized
■ Provides for the amendment of the purchase agreement, if necessary, following
receipt of completed survey and title review
• Rather than prorating rents and real estate taxes to the date of closing, the
agreement provides for the sake of simplicity to make the proration date for rent
and real estate taxes January 1, 2007
Chair Wilson questioned the lease conditions with OReilly Automotive. Ms. Mehelich
indicated that there has been no change in the structure of the payments. She noted that
staff understands from the corporate offices that they are in the process of looking for a free
standing location that better fits their corporate business model.
Ms. Mehelich explained that the city's condemnation and relocation attorney suggested that
wording regarding condemnation and relocation be included as part of the purchase
agreement so there is no confusion in the future with the seller.
Housing & Redevelopment Authority
December 4, 2006
Page 3
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO ADOPT RESOLUTION 06-02 AUTHORIZING
THE EXECUTION OF A PURCHASE AGREEMENT WITH HOULTON
INVESTMENT COMPANY FOR THE PURCHASE OF 716 AND 720 MAIN
STREET, ELK RIVER, MINNESOTA AND THE PURCHASE OF THE
PROPERTY PURSUANT TO THE TERMS OF SAID PURCHASE
AGREEMENT. MOTION CARRIED 4-0.
7. Other Business
Discussion took place regarding whether or not there would be a quorum for the January 2,
2007 HRA meeting. All members present indicated they would be available for the meeting
so it will remain as scheduled.
Adjournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 5:23 p.m.
Jessica Miller
Recording Secretary