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02-25-2021 HRA MIN SPECIAL MTG fl.f Crty of Elk „`^ Special Meeting of the Elk River River Housing and Redevelopment Authority Held at the Elk River City Hall Thursday, February 25, 2021 Members Present: Vice Chair Denny Chuba, Commissioners Nate Ovall,Jayme Swenson, and Jennifer Wagner Members Absent: Chair Larry Toth Staff Present: City Administrator Cal Portner, Planning Manager Zack Carlton, Economic Development Specialist Colleen Eddy,and Sr. Admin. Assistant/Recording Secretary Jennifer Green 1. 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 4:04 p.m. by Vice Chair Chuba. 2. Main and Gates Redevelopment Discussion Ms. Eddy presented the staff report and asked about any feedback from Monday night's community meeting as it pertained to Main and Gates. Commissioner Ovall noted the downtown area is constricted by Highway 10, the railroad, and the river. He stated he is supportive of creating a corridor from downtown to the Main and Gates area,which would require MnDOT support in improving pedestrian traffic across Highway 10. He felt it was clear from Monday night's meeting that the community was very supportive of whatever the city could do to facilitate this. Commission Wagner agreed that pedestrian safety was a concern heard from Monday's meeting and asked how the city addresses this. As a councilmember, she stated she has worked as an advocate for pedestrian-friendly travel and commented this year,construction will take place along Highway 10 of the lighted trail from downtown to Lake Orono. She wondered how a full connection for safe pedestrian movement could occur from Highway 169 to Lake Orono. She stated she also heard comments that residents were open to redevelopment downtown and were open to something if it fit, something lower key, and something that builds up the outside of the core area. Commission Chuba stated the wildcard is the highway. He stated he liked the proposal that Mr. Hartung brought forwards because it contained a hotel and wondered if it were marketed properly would it be successful. He also mentioned a tunnel but noted there would be security concerns. Commissioner Ovall wondered if MnDOT would consider a pedestrian overpass over Highway 10, noting he was impressed with how MnDOT listened to the city when putting the overpass over Highway 169. Housing and Redevelopment Minutes Page 2 February 25,2021 Commissioner Swenson commented how not only is pedestrian traffic important to focus on in this area but so is vehicle traffic. Ms. Eddy asked the commission to recall from 2017 what they were envisioning at that time, and how has that changed over the past 4 years to what they are envisioning today. Commissioner Chuba felt since the district was zoned C2, they would have to conform to that. He does not feel a bed and breakfast, or residential homes fit well as he didn't feel it was an easy walk to services such as food. He felt they should conform to its current zoning with the desire to capture as much taxes as possible. Mr. Portner explained how the taxes are calculated based upon the building that is constructed on the property. He stated the city would receive more tax revenue for an apartment or commercial building. He noted a Highway 10 overpass is doable, but challenges exist and may take years, and commented on the need for ADA compliance. Commissioner Ovall stated Ramsey built a pedestrian overpass with elevators at their parking garage and have a future trail bridge planned over Highway 10. Mr. Portner commented that he worked for Brooklyn Park when the 252 pedestrian bridge was constructed and stated the cost 15 years ago was around $2.5 million. Commissioner Ovall stated he did not have a direct vision at the time this property was slated for redevelopment in 2017 but when he looks at the corridor from Highways 10 to 169 along Main, he is not a big proponent of retail,but he can envision professional services as seen in the C2 zoning district such as a daycare,personal services, or something like a Foss Swim School. He noted this will allow people coming and going and have this be a destination, service-orientated area. He noted safe access in and out is also important and traffic would not interrupt the neighborhood. Commissioner Chuba wondered if it would help to get the remaining home removed. Ms. Eddy stated they are continuing to work with the property owner, and she has contacted the city's attorney to review the city's options. She asked Commissioner Ovall his thoughts on whether he envisions a one level or two-story structure. Commissioner Ovall stated he envisions a mixed use building and having it be multi-story will add revenue and tax base. He noted the pandemic has changed the concept of an office with people working from home and stated there still may be a need for office rental to keep home life separate from work life. He commented retail will also go through its own renaissance. He feels this area will be a service-oriented or experience type destination. While he is open to it, his concern with residential housing is parking. The commission discussed rental housing and office rental spaces in the downtown area. Commissioner Swenson asked if revenue were a goal,what would be optimal to build in this space and as important,what does the community need in this area. She stated she likes the service industry (medical, dental) already in place. She noted traffic is a concern and agreed Housing and Redevelopment Minutes Page 3 February 25,2021 that retail would not fit this area. Commissioner Wagner noted being new to the commission she has reviewed the previous minutes and while the pandemic has completely changed office world—not sure that is the right thing now. What is missing in the community that would fit in this space. She stated she has heard from some existing neighbors on the south side that medical/dental could oversaturate the area and be competitive. She stated she does see it as a connection between downtown and Highway 169, a middle fusion area. She is cognizant of the vehicle and train traffic and finds it difficult to determine what is needed for this diamond in the rough area. Mr. Portner stated it is not so much what we would like to see but more of what we are open to seeing so we can market our ideas to developers and developers can figure out what works best for the market and area. Commissioner Ovall discussed the properties in Otsego along the river and how there are some vacancies in the professional services arena. Commissioner Wagner asked about a mixed-use retail like a clothing boutique or ice cream shop. The commission discussed current retail vacancies. Commissioner Wagner asked about mixed-use apartments. Commissioner Swenson asked about 55+ living residential rather than multi-family to keep vehicle traffic lower. Mr. Carlton stated any residential property in this area would be a challenge due to the covered parking requirements. He indicated the city is receiving calls on higher density or apartment projects and available parcels. Commissioner Ovall stated in this strip he envisions traffic being from light to moderate with traffic flow more predictable during the hours of 7:00 a.m. to 9:00 p.m. He noted Railroad Drive will redevelop someday, but saw it going vertical,increasing the density and use. Commissioner Chuba stated he had no problem with adding additional professional offices as he felt it was needed. He envisioned some type of personal service on the ground level and efficiency apartments on the upper level,which should reduce the number of vehicles from apartment residents. He noted the grade could be conducive for underground parking and wondered if it was possible. Commissioner Swenson asked how many apartments buildings in the city have studios apartments, or super efficiency units. She also wondered about moving the American Legion to this location and redeveloping Railroad Drive. Mr. Carlton stated a developer could come in and put together multiple properties for a larger developing area Housing and Redevelopment Minutes Page 4 February 25,2021 Ms. Eddy asked Mr. Carlton for any updates to this area on the Comprehensive Plan. Mr. Carlton stated he did discuss this area with the comprehensive plan partners and had a similar discussion, noting concerns with parking, traffic, stormwater. They also looked at the existing zoning of C2 as a professional specialty-type clinic or service-type use rather than residential.They did not discuss building height. Mr. Carlton suggested something like a veterinary clinic, noting they had to a tough time to find a vet for their dog. He also discussed with the comprehensive plan partners the cost of adding a chapter to the comprehensive plan specifically focusing on downtown, noting both areas are in the Mississippi Connections plan and did that plan need updating. He indicated he will discuss this at the Monday, March 1 council meeting. Commissioner Ovall discussed putting something together for MnDOT and the railroad that made sense for the area. Mr. Carlton discussed the Mississippi Connections plan and the potential cost of the MnDOT Highway 10 project. Commissioner Ovall asked about access to the front of the building and how to envision the access and getting to these businesses. He did not feel access off Main Street was appropriate, suggesting access would be off Gates or 3rd. He asked about street setbacks, corner sightlines, and adding sidewalks. Mr. Carlton stated there is street right-of-way and exceptions in the ordinance to address these concerns and agreed to not have driveways off Main Street. Parking would also need to be addressed to ensure it does not disrupt the surround residential neighborhood. He discussed building and parking setbacks. It was the consensus of the HRA to propose the following to a developer forum: professional services, retail on the ground level, and efficiency apartments on the upper level, which fits the C2 zoning. The HRA felt there was enough information to put together a developer forum providing this direction and seek what developers propose for this site. 3. Adjournment Vice Chair Chuba adjourned the meeting at 5:17 p.m. Minutes pre re. • •nnifer Green. 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