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7.3. HRSR 09-08-2020 Request for Action Cir•ci Elk - River= To Item Number Housing and Redevelo ment Authority 7.3 Agenda Section Meeting Date Prepared by General Business September 8, 2020 Amanda Othoudt,EDD Item Description Reviewed by 2021 HRA Budget and Resolution Establishing Lori Ziemer,Finance Director HRA levy Reviewed by Cal Portner, City Administrator Action Requested Approve,by motion, the 2021 HRA Budget and resolution establishing the HRA Tax Levy for 2021. Background/Discussion Revenues The 2021 budget of$472,450 is funded with property taxes of$321,450 and interest income of$5,500. Reserves of $145,500 will be utilized for the remaining balance. The state caps an HRA operating levy at 0.0185% of estimated market value. Based upon Sherburne County's estimated market value of$2,721,937,400 received in the spring, the operating levy is about .0118%. Last year, the HRA operating levy was 0.0123%. This is a decrease of$48,800 in property taxes over the previous year. Expenditures The proposed 2021 budget was developed with the goals and action steps outlined through recent discussions, established programs,the 2017-2020 HRA/EDA Strategic Plan, the Mississippi Connections Downtown Plan, and the City Vision&Goals. Major initiatives from these documents include: Rehabilitating at least six properties by utilizing the HRA Housing Rehabilitation Loan Program. Allocating$150,000 to rehabilitate target areas of the city which is developed through coordination of the HRA and Center for Energy and Environment Allocating$5,000 to fund a downtown permanent public fixture policy. Allocating$8,200 to fund watering/maintaining flowers in 2021. Major Changes Direction from the budget workshop included the following changes: Property Acquisition At the August 3, 2020, budget work session,the HRA discussed opportunities for property acquisition in 2021. The commission felt comfortable with the proposed allocation of$145,500 for 2021 to be funded from reserves. This amount will allow the HRA to act on purchasing an additional property in the block. The Elk River Vision P I I E R E I I Y A welcoming community avith revolutionary and spirited resourcefulness, exceptional [NAfUR service, and community engagement that encourages and inspires prosperity. Updated.August 2020 Goals Enhancing redevelopment opportunities for C/I properties: Target business owners interested in redevelopment blighted C/I properties. Work with the building department to identify properties eligible for the blighted properties C/I program. Hold quarterly work sessions with various departments (police,building, and planning) to discuss potential redevelopment opportunities. Following their work session,the HRA directed staff to move forward with the proposed budget as presented. As of September 3, 2020, the HRA has a cash balance of$433,021.41. Financial Impact N/A Mission/Policy/Goal The HRA Bylaws indicate that a budget shall be prepared by the executive director and presented to the Commissioners of the Authority for consideration in August of each year.After full consideration of the budget, the Commissioners of the Authority shall approve and the Chair shall submit the budget to the City Council. Attachments Resolution Establishing the HRA Levy for Collection in Year 2021 2021 HRA Goals and Performance Measures Proposed 2021 Budget Detail Spreadsheet 2017-2020 Strategic Plan N:\Departments\Commiuiity Development\Economic Development\HRA\Administrative\Agenda\2020\09-08-2020\7.3 sr 2021 Budget ry 09042020.docx City of Elk River Resolution 20- A Resolution of the City of Elk River Housing and Redevelopment Authority Establishing the Tax Levy for the Elk River Housing and Redevelopment Authority for the City of Elk River, Minnesota WHEREAS, Minnesota Statutes, Section 469.033, Subdivision 6, authorizes the Housing and Redevelopment Authority to levy an amount not to exceed .0185 percent of the estimated market value within the city to be used for housing and redevelopment purposes; and, WHEREAS, the Elk River Housing and Redevelopment Authority anticipates expenditures in 2021 for various housing and redevelopment activities. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, TUnnesota, as follows: The Housing and Redevelopment Authority requests the City Council of the City of Elk River to levy a tax in the amount of$321,450 for the benefit of the Authority to be used as provided by Minnesota Statutes. Passed and adopted this 8T``day of September, 2020. Larry Toth, Chair ATTEST: Amanda Othoudt,HRA Executive Director p 0 w I R I U 0 NATURE] Division Performance Measures & Goals for 2021 Division: Housing and Redevelopment Completed by: Amanda Othoudt Date: June 3, 2020 Performance Measure 2019 Actual 2020 Estimated 2021 Projected Number of new applications for 2 6 6 HRA Rehab Loan Blighted Properties Residential and Commercial/Industrial 0 1 1 Forgivable Loan Program Division Goal Goal Objective/Task Target individuals interested in the blighted properties Promote Preservation of HRA Housing Stock program and the HRA Rehab Loan Program.Work with Sherburne County to identify tax forfeited properties. Protect and strengthen rental properties. Participate in the Downtown Rivers Edge meetings. Continue to implement the Mississippi Connections Plan.Work with the DT Association to develop a beautification plan for the Main Promote a Vital Downtown Street Corridor.Continue to promote the permanent fixture policy on behalf of the HRA to install and maintain permanent public fixtures downtown. Promote the Downtown Facade Improvement microloan program. Target business owners interested in redevelopment blighted C/I properties.Work with the building department to identify Enhance redevelopment opportunities for C/I properties properties eligible for the blighted properties C/I program. Hold quarterly worksessions with various departments(police, building,and planning)to discuss potential redevelopment opportunities. 2021 BUDGET DETAIL SHEET Dept: Housing&Redevelopment Authority Acct. 2017 2018 2019 2020 2021 No. Explanation/Detail of Supplies or Services Actual Actual Actual Detail BUDGET Detail BUDGET REVENUES: 3111 Property Taxes 290,146 290,054 315,352 370,250 321,450 3322 MV Credit 164 152 163 - 3414 Development Fee - - 589 - 3621 Interest Income 8,664 10,200 11,608 8,000 5,500 3629 Miscellaneous Revenue 7 - 35 - TOTAL HRA REVENUES 298,981 300,406 327,747 378,250 326,950 EXPENDITURES: PERSONAL SERVICES 4101 Regular Pay 59,914 65,184 67,200 71,050 74,950 4104 PERA 4,494 4,889 5,040 5,350 4,650 4105 FICA 3,716 4,035 4,168 4,400 4,650 4107 Medicare 869 944 975 1,050 1,100 4108 Insurance 7,794 10,292 10,637 11,200 11,750 4109 Workers Comp 270 315 302 350 350 TOTAL PERSONAL SERVICES 77,057 85,659 88,322 93,400 97,450 SUPPLIES 4201 Office Supplies 42 - - - - (shared with EDA) - 4219 Operating Supplies - - 4,420 5,000 5,000 Downtown permanent fixtures 5,000 5,000 TOTAL SUPPLIES 42 - 4,420 5,000 5,000 OTHER SERVICES&CHARGES 4304 Legal Fees 3,923 3,394 5,523 5,000 6,000 Misc. 5,000 6,000 4319 Other Professional Services 8,525 23,016 13,024 23,050 - Downtown Plan implementation 23,050 - 4322 Postage 75 20 11 3,500 3,500 100 100 4331 Travel,Conferences&Schools 1,210 596 44 200 200 MREJ-Housing Seminars 200 200 4349 Advertising/Marketing 9,612 10,512 10,430 11,200 11,200 Housing Program Marketing Materials-printing 2,500 2,500 Holiday Cards-Expanded Area 1,800 1,800 HRA/EDA Shared Website 5,700 5,700 Lead Forensics-Split between HRA/EDA 1,200 1,200 4359 Publishing 552 637 312 250 325 Public hearing notices 250 325 4361 Insurance 53 924 2,682 3,500 - Property insurance 3,500 - 4389 Utilities 334 243 68 250 250 - - 4401 Building Repair/Maint.Services 79,848 3,930 5,380 4,000 4,000 Lawn/snow removal 4,000 4,000 4409 Contractual Services 16,800 11,675 4,021 180,000 157,000 Blighted Properties Program Funding Elk River HRA Rehab Program 180,000 150,000 CEE Administrative Fee 7,000 4433 Dues&Subscriptions 237 237 236 250 275 Downtown Spotlight 250 275 4437 Property Taxes 629 5,761 4,746 4,450 4,450 - 4440 Miscellaneous - 354,197 156,501 - 145,500 Property acquisition - 145,500 TOTAL OTHER SERVICES&CHARGES 121,798 415,142 202,978 235,650 324,600 TRANSFERS OUT 44,200 45,400 4721 General Fund 24,750 30,000 31,500 32,700 33,700 General Fund-plant maintenance - - - 8,000 8,200 4735 Economic Development Authority(shared expenses) 3,500 3,500 3,500 3,500 3,500 TOTAL HRA EXPENDITURES 227,147 534,301 330,720 378,250 472,450 A REVENUES OVER/(UNDER)EXPENDITURES 71,834 (233,895) (2,973) - (145,500) 9/4/2020 2016-2020 EDA/HRA Strategic Plan BUSINESS DEVELOPMENT Attract new businesses and support existing businesses to increase the city's industrial tax base, commercial tax base and employment base. INDUSTRIAL STRATEGIES ➢ Promote available sites, encourage business retention and expansion to grow existing light industrial base with business recruitment/attraction techniques ➢ Diversify economic base to include professional services, corporate campuses, energy- related companies, and technology businesses ➢ Review existing programs, resources, and services and recommend improvements to increase competitive advantage and support goals ➢ Explore creative economic development collaborations ➢ Utilize Energy City and its tools to recruit new and assist existing businesses COMMERCIAL STRATEGIES ➢ Promote available sites, encourage business retention and expansion to grow existing commercial base with business recruitment/attraction techniques ➢ Diversify economic base to include a wide variety of retail and service industries, as well as additional fine dining opportunities ➢ Review existing programs, resources, and services and recommend improvements to increase competitive advantage and support goals ➢ Explore creative economic development collaborations ➢ Enhance commercial district through business recruitment and activities ACTION STEPS • Complete minimum of one BRE visit a month with participation from EDA/HRA and Council members (manufacturers and top employers) and distribute Business Finance Toolkit, Available Sites, Community Profile, Energy City Brochure, Business Recycling Toolkit and other pertinent information. • Promote available sites through exhibits at various expos (minimum 2x/yr.) • Utilize 171" FAST implementation plan to create a marketing piece for Nature's Edge Business Center and an annual redevelopment action plan to monitor progress of implementation • Partner with ERMU to identify applicable rebates for available city-owned property 1 • Promote applicable incentives through direct mailings(minimum 3x/yr.) • Promote Elk River to the restaurant industry through website (www.elkrivermn.gov/restaurants), direct mailings, Constant Contact email blasts and other marketing venues • Partner with Elk River Area Chamber of Commerce to coordinate Chamber goals with economic development goals through various implementation tasks • Utilizing economic development publications make contact with businesses looking to expand, relocate, etc. • Review Micro Loan Program and recommend improvements to increase competitive advantage and support goals • Partner with ECC and ERMU to explore a joint incentive to attract energy-related technology businesses • Partner with local schools and manufacturers to hold quarterly meetings to encourage students to explore a career in manufacturing through plant tours, youth apprenticeship programs, energy city tours and programs, and job shadowing • Update a powerful website for the Elk River Economic Development Department and the Housing and Redevelopment Authority. Provide analytic reports on a quarterly basis. • Demonstrate support for existing manufacturers and raise awareness regarding their impact on the community through various promotional activities and tours during Minnesota Manufacturers Week • Identify target industries (e.g. craft brewery, manufacturing and medical device, etc.) and create specific marketing pieces to identify advantages and programs to assist in business recruitment • Host quarterly Manufacturers' Connection events with local manufacturers to promote financial incentives, resources and relevant topics to promote business retention and appreciation • Produce an energy conservation best-practices brochure to provide to businesses • Coordinate with Energy City to plan and market energy city events e.g. Energy City Business of the Year • Partner with Energy City and the Streets Department and continue to promote proper disposal of Fats, Oils and Grease through videos, flyers, emails, social media, and other media • Host and Promote a quarterly business rountable event with local business leaders and community stakeholders. • Partner with the Elk River Area Chamber of Commerce to hold annual event to promote economic development resources and incentives (Juice Up Your Morning, Chamber luncheon, Money Breakfast, etc.) • Continued contact and relationship development with Twin City commercial real estate brokers/developers 2 REHABILITATION AND REDEVELOPMENT Undertake strategies that facilitate rehabilitation and redevelopment of aging commercial, industrial and residential areas to ensure private reinvestment and sustainability. COMMERICAL/INDUSTRIAL STRATEGIES ➢ Maintain a listing of available commercial/industrial sites ➢ Promote available sites through various marketing initiatives ➢ Identify and examine potential areas for revitalization ➢ Review existing programs, resources, and services and recommend improvements to increase our competitive advantage and support goals ➢ Enhance downtown commercial district through business recruitment and people- generating activities ➢ Develop and implement a blighted properties program for both commercial and residential properties ACTION STEPS • Identify target areas for the blighted properties program • Partner with downtown business association and civic groups to promote existing and explore new downtown activities (i.e. BNI, Chamber Connections, etc.). • Partner with Elk River Area Arts Alliance to explore funding concepts for an arts center within the downtown study area • Create and distribute a survey to businesses to identify recommended improvements to existing programs, resources and services, in addition to identifying preferred methods of communication to improve Elk River business climate • Identify current property owners' and businesses' interest in redevelopment efforts both north and south of HWY 10 and in 171ST Focused Area Study area • Create a redevelopment policy regarding capitalizing the HRA development fund and identify parameters for purchasing parcels • Create and distribute comprehensive business directory to promote downtown Elk River • Update short videos promoting available sites and applicable initiatives to distribute through social media outlets, constant contact and website 3 RESIDENTIAL STRATEGIES ➢ Maintain listing of vacant/foreclosed properties ➢ Address housing gaps with Comprehensive Housing Market Study recommendations ➢ Proactively review neighborhoods annually to ensure all home are properly maintained through the code enforcement process ➢ Seek and promote available programs to improve existing housing stock and incentivize homeownership through CMHP ➢ Provide educational opportunities regarding foreclosure prevention and housing assistance programs by developing brochures/pamphlets ACTION STEPS • Distribute MN Home Ownership Center foreclosure prevention, Energy City conservation brochure, and Elk River Housing Toolkit information to local lenders, realtors, churches, non- profits, builders, etc. (minimum 4x/yr.) • Partner with applicable non-profits (MNHOC, Tri-CAP, etc.)to hold educational events to promote foreclosure prevention and housing programs (minimum 2x/yr.) • Continue to partner with the CMHP housing organization to fund and support a selective housing removal and rebuilding program • Host an annual Realtors' Day to educate realtors about the programs, processes and amenities offered by the city 4 COMMUNITY BRAND Utilize community brand strategies to effect necessary changes to strengthen and enhance community image STRATEGIES ➢ Continue to implement and enhance marketing plan that reflects the Powered by Nature brand, identifies desired target market(s), and complements other local efforts to promote the community internally and externally ➢ Maintain existing and build new community support for the Powered by Nature brand ➢ Establish benchmarks for performance measurement ACTION STEPS • Distribute window clings and larger windows signs of the logo • Promote the brand, engage residents, and distribute materials at expos (3x per year) and at events such as Realtors' Day, Leadership Elk River, and Manufacturers Connection • Create profiles on first-tier business owners in Salesforce—a tracking software used to record information on local businesses and visits • Benchmark the impact of the Powered by Nature brand with data from Google Analytics and a search engine optimization analysis. • Promote Public Art Installation and research opportunities to expand public art within the city. 5 TRANSPORTATION Advocate and support proactive planning for improvements to the local and area transportation system in a way that will support existing businesses and complement new economic growth. STRATEGIES ➢ Advocate regional and local transportation improvements ➢ Encourage transportation improvements as part of redevelopment/development opportunities ➢ Support efforts to leverage local funds with state/federal resources ACTION STEPS(submitted by City Engineer) • Increase contact with legislators for state highway transportation improvements • Complete low cost/high benefit enhancements to improve traffic flow through the existing street intersections • Advocate for the continued use and expansion of Northstar commuter rail service. • Continue implementation of transportation improvements as detailed in the 171St Focused Area Study • Assure all proposed development improvements are consistent with our local and regional transportation plans. • Leverage State and Federal investment for mobility improvements to TH 169 and TH 10 with the already spent local dollars for the planning of improvements to these sections. • Evaluate all available grant opportunities to determine if the local matching amounts are a cost effective and feasible solution to support our objectives and strategies. • Promote the Quiet Zone, Northstar Commuter Train and Bike paths. 6