12-07-2020 HRA MIN City of
• E T Regular Meeting of the Elk River
River Housing and Redevelopment Authority
Held at the Elk River City Hall
Monday, December 7, 2020
Members Present: Chair Larry Toth, Commissioners Denny Chuba,Nate Ovall,and Jayme
Swenson
Members Absent: Commissioner Michelle Eder
Staff Present: City Administrator Cal Portlier, Economic Development Specialist Colleen
Eddy,and Sr. Admin.Assistant/Recording Secretary Jennifer Green
I. 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 5:30 p.m. by Chair Toth.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider December 7, 2020, Agenda
Moved by Commissioner Ovall and seconded by Commissioner Chuba to approve
the December 7,2020, HRA meeting agenda.
Motion carried 4-0.
4. Consent Agenda
Moved by Commissioner Ovall and seconded by Commissioner Swenson to approve
the consent agenda as follows:
4.1 November 2,2020,meeting minutes.
4.2 Check register as outlined in the staff report.
4.3 Balance sheet as outlined in the staff report.
4.4 Revenue/expenditure report as outlined in the staff report.
Motion carried 4-0.
5. Open Forum
No one appeared for Open Forum.
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December 7,2020
6. Public Hearings
There were no public hearings.
7.I HRA Housing Rehabilitation Loan Program Update
Ms. Eddy presented the staff report.
7.2 Main and Gates Redevelopment Update
Ms. Eddy presented the staff report. She stated she received notice from Veit Construction
that they found suspected asbestos in the basement 419 3' Street.Veit contacted Techtron,
who tested and confirmed the finding. Ms. Eddy indicated Veit is required to landfill the
material which will increase costs due to trip charges. The Techtron asbestos testing will also
be an additional cost.
The HRA recessed into work session at 5:38 p.m. and reconvened at 5:38 p.m.
8.I Center for Environment and Energy (CEE) Programs Discussion
Ms. Eddy presented the staff report and introduced Jim Hasnik from CEE,who presented a
PowerPoint outlining their programs and compared them to the HRA program. He asked
for the HRA to consider how they can increase participation in its loan program and
consider possibly changing some of its parameters. He also asked if CEE should be using �."
the HRA dollars first or use other programs that make the best financial sense for our
residents. He stated the HRA's program interest rate at 4% seems higher than other
programs that are available which is why residents are using lower interest rate offerings. He
stated there have been some applicants needing more than $25,000 which is the cap on the
HRA loan. He indicated state loans are also a more popular loan option because the funds
are disbursed at closing and there is no escrow involvement. Mr. Hasnik explained a few
programs that offer down payment assistance, senior deferral programs, and emergency
funds are also offered in other communities. He stated if the HRA were interested in
exploring more options for lending funds, CEE can make those loan requirements income-
based or not, are easy to set up, and do not require interest.
Commissioner Ovall state he felt that any advocacy and tools that help the residents achieve
their goals in a cost-effective manner, and improves the city's housing stock,is meeting the
goals of the HRA loan program. He felt the HRA loan program is adequate for our
initiatives asked if CEE had any other initiatives to take on or recommendations to consider
about their own program. He wondered if a future work session could address some current
needs in our own or other communities that offer programs.
Commissioner Swenson asked if separate loans were available for well and septic.
Mr. Hasnik stated those needs would fall under a home improvement loan. He indicated the
city of Mounds View took out a$2 million loan for three years through the Minnesota
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December 7,2020
Pollution Control Agency for residents to replace aging sewer lines with a 0%rate for aging
sewer lines.
Commissioner Ovall asked if there was an aging infrastructure loan for sewer and water
program offered in other communities.
Mr. Portner explained that recently a development with a failing septic system had used a
loan issued through the Department of Agriculture. He stated if a resident has a sewer line
with a stub from their home, they have a petition and waiver loan that uses city funds.
He stated the downtown businesses with a failing sewer line also used that same pool of
funds.
Chair Toth asked about a blighted properties program.
It was the consensus of the commission to invite Mr. Hasnik back for a future work session
to consider other program options,noting he was interested in putting together anything for
the city's needs.
9. Adjournment
Chair Toth adjourned the meeting at 6:01 p.m.
Minutes prepared by Jennifer Green.
Tina Allard, City Clerk
arry To Chair
Housing&Redevelopment Authority