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4.1. DRAFT HRA MINUTES (3 SETS) 06-07-2021 City of Elk Regular Meeting of the Elk River River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, April 5, 2021 Members Present: Chair Larry Toth, Commissioners Denny Chuba, Nate Ovall,Jayme Swenson, and Jennifer Wagner Members Absent: None Staff Present: City Administrator Cal Portner,Economic Development Specialist Colleen Eddy, Planning Manager Zack Carlton,and Recordin SecretaryT Jennifer Green I. Call Meeting to Order Pursuant to due call and notice thereof, the meeting o `e`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 April 5, 2021,Agenda Moved by Commissioner Swenson secon ed by Commissioner Chuba to approve the April 5, 2021, HRA meeting agenda. Motion carried 5-0. 4. 'Consent Agen Commissioner Swenson asked to clarify the minutes on page 2 and strike the word "efficiency" and change to "executive studio". Moved by Commissioner Chuba and seconded by Commissioner Wagner to approve the consent agenda as follows: 4.1 March 1, 2021, meeting minutes, with the change as referenced above. 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. 4.5 Satisfaction of Mortgage for Jayme and Chad Swanson as outlined in the staff report. Housing and Redevelopment Minutes Page 2 April 5,2021 ----------------------------- Motion carried 5-0. S. Open Forum No one appeared for Open Forum. 6. Public Hearings There were no public hearings. 7.1 Downtown Beautification Ms. Fischer presented the staff report and outlined the details of 11 other city's basket purchasing and funding source programs, the types of baskets and planters used, some other options like lights. Commissioner Ovall complimented Ms. Fisc" er on the detailed survey information she presented and felt it was important to emulate the high quality, successful baskets shown from other cities. He asked her if she was aware of any cities that use the water labor saving baskets she presented,noting he,; eluctant to use a product that has not survived Minnesota weather. Ms. Fischer stated she was not aware in Minnesota but stated she could try one this year and if it works, the city could change over to them next year;= Commissioner Chuba asked for clarification of the number of baskets. Ms. Fischer stated 24 baskets are required with a 60-pound weight limit per pole. Commissioner Swen ,n stated she liked the lights idea Ms. Fischer presented. Commissioner Wagner asked for clarification of the staff and labor used for 2020. %- s. Fischer stated Street and Parr Superintendent Tim Sevcik indicated he used two seasonal employees at$15/hour to water for 2 hours/day, 420 hours a week, at a cost of $6720 for the summer months. Mr. Sevcik suggested including an additional$2000 for any additional equipment, for an annual labor total of$8720 before purchasing the plants or pots. Based on these figures,Ms. Fischer recommends using a different type of basket that requires less watering. Chair Toth asked what kind of equipment can be shared. Ms. Fischer stated sprayer nozzles and hoses plus they may need an additional water truck. She stated some cities find it more cost effective to hire a contractor to do the water and care for the year. Housing and Redevelopment Minutes Page 3 ApA 5,2021 ----------------------------- Commissioner Ovall noted the cost Mr. Sevcik quoted includes the hourly rate for equipment that includes depreciation and use. Commissioner Swenson asked what kind of baskets were used last year and would they be used again this year. Ms. Fischer stated 12'pots with no reservoir. She stated they will not use those again this year because of last year's high fatality rate on the north side of the street. She stated she will try planting one herself to determine if they will succeed in Minnesota. She said if the plants need the water,they will water themselves through the wicks,with the company noting they are meant to withstand heat up to 240 degrees. Chair Toth noted the north side of the street gets full A&, 0 Ms. Fischer stated Mr. Sevcik suggested flowers onsouth sid\bon the north side to reduce the basked fatality rate. Chair Toth asked what the downtown association group's interest was in theseflowers. Ms. Fischer stated they were very interested and wanted to know how to best help and what the most viable, affordable options wavailable. Commissioner Chuba stated with the plants and labor, this is a lot of money for downtown businesses to support but perhaps the HRA can provide funding. Chair Toth asked if the city will foot the whole bill or will the downtown group help with the funds. Ms. Fischer stated she had not spoken to the downtown group directly,but she knows the members are very excited to hear the city is working on financially supporting beautification efforts. She stated that is why she included in her presentation other financial source suggestions that have worked for other cities for Elk River to consider. Commissioner Wagner provided some history on the downtown business association's involvement and support for beautification efforts. She explained the downtown association budget,which is funded by some business, has always paid for the downtown flowers, noting last year they purchased 24 pots for$75 each. She stated the group worked with ERMU when the light poles were replaced to also replace the sidewalk planters with the hanging baskets and banners,which also allowed more sidewalk space. She stated the downtown association has always had a huge ownership in the downtown beautification and while not every business belongs to the downtown association, the $100 annual membership fee is paid by a few businesses to benefit the entire downtown. The association also pays for the winter plantings. She stated she and Tamara from Avalon Salon tried to locate some affordable lights for wintertime but found they were too expensive to be funded out of the budget. She stated everyone learned a lot about flower basket maintenance in 2020 and are still interested in using them for 2021 but with changes so the baskets survive the summer. Commissioner Wagner stated she personally feels, along with feedback from some of the other downtown business, that the city should put funds towards the downtown public Housing and Redevelopment Minutes Page 4 ApA 5,2021 ----------------------------- permanent fixtures policy,with includes beautification,because the city hosts many events downtown in conjunction with the association. Her understanding of the $5,000 was to be used towards permanent fixtures,not flowers. She stated the downtown association and the HRA made a joint purchase of the banner poles on the light fixtures. Ms. Eddy stated the policy does allow flower purchases from the $5,000. Chair Toth asked if the present hangers will accommodate the larger 23" baskets. Ms. Fischer stated she was not sure what weight restrictions were on the existing hangers but will find out. Commissioner Wagner also noted she personally received feedback that folks are missing seeing the lights on the trees. She stated she really liked the idea Ms. Fischer presented of the globe lights as an option of hanging on the poles instead of flowers. She wondered if having hanging flower baskets becomes difficult, she wondered if we do the lights instead of the flowers, or alternate flowers,banners, and lights. She stated she felt the winter baskets were nice because they were large and looked good.,: Commissioner Swenson stated she liked that idea. Commissioner Ovall asked where the plants came fro ear. Ms. Fischer did not know but she found the best retail price cis rently is for what is called the weekender basket for$70, and they could receive a price break for purchasing a large quantity. She indicated she spoke to Green Valley and they explained getting their order in September allows the greenhouse to plan accordingly for the following May. She felt they had the best pricing for quantity orders. Commissioner Wagner stated last year's baskets were purchased from R&B Gardens, and in years past they have used Spikes and Green Valley in trying to stay with local companies. Commissioner( vall stated he is in favor of getting some proposals from profession greenhouses to get consistent products. He stated he is in favor of seeking sponsorships to receive advertising support to cover some of the costs. such as Plaisted's covering soil costs or Green Valley Greenhouse. He stated he is not in favor of using volunteers as the logistics are too tough but perhaps some volunteers would assist staff and build on that over time. Chair Toth asked if the current poles can handle the lights. Commissioner Wagner stated the current poles should be able to handle the lights. Chair Toth stated he is not opposed to anything the commissioners are proposing as he loves flowers, but he still thinks the HRA must determine how the flowers will be maintain and who exactly is paying for it. Ms. Fischer stated it is important to be very transparent regarding costs and who is paying for what. She stated she can get additional pricing for this year from 2 different nurseries. Housing and Redevelopment Minutes Page 5 ApA 5,2021 ----------------------------- She stated they all do slow-release fertilizer. She asked if there were lights the HRA preferred, she would obtain pricing. Commissioner Wagner likes the various size globes shown on the left side of the slide. Commissioner Swenson felt it important to bring in the association and get their input. Commissioner Wagner indicated the downtown association wants to help and do what they can, but their budget is limited. Chair Toth asked what is allocated for 2021 in the HRA budget. Ms. Eddy stated there is $5,000 allocated for 2021. She sated_.._ general fund budget has allocated $8200 for watering and maintenance. Commissioner Ovall stated the monies used for this not only benefits'the downtown businesses but the whole community,noting he does not have a problem with approving this to support the image of the community and maintaining a historical part of the city. Commissioner Chuba asked if Commissioner Ovall was open to raising the HRA contribution. Commissioner Ovall indicated h s. Commissioner Wagner stated the city needs to help e a bigger„part of beautifying the spaces it owns and holds events. She stated irt:the future she would like to continue these same beautification efforts along Main Street towards Highway 169. Ms. Fischer stated she recommends locking in a two or three-year contact with a local nursery. Ms. Eddy stated during the summer budget work session, the HRA creates a plan moving forward, formalizing a two-year program,and obtain the downtown association feedback. Chair Toth is supportive of beautification efforts downtown. It was the consensus of the HRA to have staff return next month with more information including proposals from 3 or 4 area nurseries and provide prices on lights. Ms. Fischer will also present.information gathered from the upcoming downtown group meeting. 7.2 Joint Finance Committee — HRA Representative Ms. Eddy presented the staff report. Commissioner Ovall support this change and asked if it will also be made to the EDA bylaws. Housing and Redevelopment Minutes Page 6 April 5,2021 ----------------------------- Mr. Portner stated the quorum differential for the EDA is four people and it was much easier to get the HRA quorum with only five members. Commissioner Ovall supported this as he expressed how important it is to have a banker's viewpoint on the Finance Committee. Moved by Commissioner Ovall seconded by Commissioner Swenson to approve the amended HRA bylaws as presented in the staff report. Motion carried 5-0. Moved by Commissioner Chuba seconded by Commissioner Wagner to approve the resignation of Denny Chuba from the Joint Finance Committee due to the approval of the amended bylaws. Motion carried 5-0. 7.3 HRA Rehabilitation Loan Program ' pdate Ms. Eddy presented the staff report. Chair Toth asked about the reason behind applications that do not seem to materialize. WNW Ms. Eddy stated in many cases the residents needed more than the allowed $25,000 policy Emit. She stated even if our program does not fund the rehabilitation, the homes are still receiving renovated and accomplishing the endgoal with other lending options. Commissioner Ovall asked to see a monthly report of what the remaining funds balance is available. Ms. Eddy stated it would be added. 7.4 Main and Gates Redevelopment Update AW401bb., 'Wk VIs. Eddy presented the staff report. ommissioner Ovall stated he was not in favor of these expenses. He wondered if they needed to change their ordinance for properties in transition to avoid this requirement,but he had concerns paying for topsoil and seeding if the site is then going to be redeveloped. Commissioner Chuba and Chair Toth also agreed, noting erosion control was important but not having green grass. Mr. Portner stated the city needs to follow the same ordinance requirements as other development properties and stated unfortunately there was no choice in this matter besides which option the HRA wants to choose. Commissioner Swenson asked if there is anything that can be done because the property was in transition. Housing and Redevelopment Minutes Page 7 April 5,2021 ----------------------------- Mr. Portner noted the ordinance would have to be amended in the future and the discussion could be had at the council level. Commissioner Ovall felt there should be more innovative ways to accommodate a redevelopment property included in the ordinance with either fencing or adding a sign "property in transition." Mr. Portner stated they can add that discussion to the council meeting agenda work session later that evening. Chair Toth asked was council representative Wagner thought about the seeding expenses. Commissioner Wagner stated she 100% agrees with not spending the funds. Councilmember Ovall reiterated the ordinance requirements stated by Mr. Portner and stated the city deals with this all over the city and how do we make this a workable solution while still following the ordinance. """' Mr. Carlton stated he has not seen the proposals or what is quoted but stated the ordinance standard requires 70%vegetative coverage to provide erosion control along with weekly mowing upkeep. He stated there's . s.,to provide the,coverage and would be happy to review the bids. Commissioner Wagner asked about e timeline requirements'" comply with the ordinance, noting the developer forum was occurring soon. Mr. Carlton explained the importance of providing something,whether it be hydroseeding or straw blanket and seed, to provide erosion control. He would be happy to go through the bids with Ms. Ed and sc, w satisfy the,ordinance without Commissioner Swenson suggested prairie grasses or contacting Sherburne County Soil and Water to get some low-cost grasses. The HRA recessed into work session at 6:25 p.m. The meeting reconvened at 6:25 p.m. 8.1 Downtown Discussion Chair Toth asked for the direction from the City Council based upon their meeting March 15 where they determined the Housing and Redevelopment Authority could discuss and develop a plan to move this forward. Commissioner Wagner explained the council discussion at that meeting and the cost of adding into the comprehensive plan update a study specific to the core downtown area. The price of$76,500 was a large amount of money to pay a consultant when the council does not identify a direction or ideas to provide to the consultant. She, along with the council, felt the HRA, staff, business community,and other local resources can be utilized to create and finalize the vision and direction instead of paying a consultant for that. She did feel a traffic study,part of the consultant's scope of this study,would be valuable and more affordable Housing and Redevelopment Minutes Page 8 April 5,2021 ----------------------------- and not something that could be completed by staff. She concluded the HRA could form visions and questions and then start creating a bigger vision. Commissioner Ovall stated he has never been a part of a traffic study and wondered if that should be done prior to the HRA visioning sessions,noting the HRA could provide some scenarios or requesting recommendations for improving traffic flow. Commissioner Wagner stated she has heard many times that residents like our downtown and would like us to utilize the river front even more, so doing more visioning could formulate some ideas. Commissioner Swenson agreed. The HRA recessed into work session at 6:31 p.m. and moved * p n. The meeting reconvened at 6:34 p.m. with the same members present. Chair Toth stated Gary Santwire approached the mayor a few months ago and stated he would like to approach the remaining homeowner in the Main and Gates redevelopment area as a developer,purchase the property, and resell it back to the city,without making any money on it. He wants to see the area redevelopment and would like to help if he could. Chair Toth felt the HRA should be aware of Mr. Santwire's idea. Commissioner Chuba asked if Mr. Santwire was going to trade property with the homeowner. Chair Toth stated he did not know whafthe ar`r`angement would be. He told Mr. Santwire the city would not have any involvement in the arrangement. Commissioner Ovall stated it was a free market and the city does not have Commissioner Swenson stated she would see this as a private contract with a private citizen. Ms' ddy stated staff would like direction from the HRA because they received a valuation of the property and it came back at $209,000. She stated the homeowner paid $140,000 cash for house in 2007. Commissioner Ovall questioned Mr. Santwire's timeline and what should the HRA do next. The HRA discussed next steps and the current housing market. At 6:44 p.m., Commissioner Oval left the meeting. Because of time constraints and the upcoming developer forum,it was the consensus of the HRA to continue discussions regarding downtown at a special meeting to be held on Monday,April 12, 2021, at 4:00 p.m. Housing and Redevelopment Minutes Page 9 April 5,2021 ----------------------------- 9. Adjournment Chair Toth adjourned the meeting at 6:47 p.m. Minutes prepared by Jennifer Green. Tina Allard, City Clerk Larry Toth, Chair Housing&Redevelopment Authority City of Elk Special Meeting of the Elk River River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, April 12, 2021 Members Present: Chair Larry Toth,Denny Chuba (4:30 p.m.), Commissioners Nate Ovall (via Zoom),Jayme Swenson,and Jennifer Wagner Members Absent: none Staff Present: City Administrator Cal Portner,Planning Manager Zack Carlton,Economic Development Specialist Colleen Eddy, and Sr. Admin. Assistant/Recording Secretary Jennifer Green I. Call Meeting to Order Joe Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment Authority was called to order at 4:03 p.m. by Chair Toth. 2. Main and Gates Redevelopment Discussion and Downtown Discussion Ms. Eddy presented the staff report, Chair Toth began the discussion by stated he had a brief conversation with a downtown business owner who stated they wanted the downtown to remain as is and"historic." Commissioner Wagner states she continues to have conversations with downtown business owners and visitors. She stated she knows the downtown business association members support growth and progress if it makes sense. She explained hearing about residents and their feeling of a `historic downtown'but the buildings are not registered as historic. She outlined the takeaways she gathered from the public forum,which included improving pedestrian accessibility to downtown, especially across Highway 10, traffic flow through downtown, and improving river access. She suggested a traffic study to determine what changes can be made. She wants to continue looking big-picture at this area. The HRA discussed the big vision of the downtown and the commissioners brainstormed on what short- and long-term areas to tackle. Commissioner Ovall commented there was no initiative generated by the city to redevelop downtown Elk River,it has been situations presented to the city. He explained that when the school district building went up for sale,it triggered a series of events for the city to consider purchasing the building. Discussions with the HRA and EDA determined the EDA did not want the building but the HRA explored the possibility of creating a TIF district to include the building and other buildings in the block. To do so, the HRA had to assess the potential eligibility and conditions of buildings to determine if a certain percentage were substandard, which would allow a redevelopment to occur. He stated these were all exploratory options. Jesse Hartung then presented his vision and proposal to the city without any request by the Housing and Redevelopment Minutes Page 2 April 12,2021 ----------------------------- city to do so. The city let go of the school district building,which was then sold. He stated the council is asking the HRA what direction,if any,does the HRA want to go. He felt what he has heard from Commissioner Wagner and the feedback from public forums and residents is that the downtown area does not need to change. He stated he did feel if there is anything to modify or review if opportunities come do up,where does the HRA want to take those ideas. He felt a focus on improving traffic flow,if any,with a traffic study is appropriate and within the authority of the HRA to gain that knowledge of a study and staff expertise. He outlined a second takeaway from the public forum and that is to explore development on the other side of the railroad tracks and the potential for a pedestrian bridge or walkway across Highway 10 by finding a way to explore that option with MnDOT. He felt that could provide substantial benefits for our community. Lastly,he felt expansion of the downtown district, continue southwest along the river and consider future zoning alignment to work on the river view frontage and commerce aspect.,, Chair Toth agreed with reviewing the riverfront area. Mr. Portner stated the city does not have the ability to do a traffic study in-house. Commissioner Wagner stated the line item in the proposals presented by Houseal Levigne Associates (HLA) was for $17,000 to complete a traffic study with the option to complete a pedestrian bridge location study for $15,000. She felt this is a big, broad conversation and from the beginning of discussions,her stance has been the Council, HRA, and EDA never answered whether or not they wanted to redevelop the downtown. She stated they are always open to the private groups coming to the city for ideas. She does not want to spend $76,500 on a consultant study until the city knows if they really want to make changes. She feels if the city wants to get the best value for their funds and walk away with a good plan from consultants, the city provides the consultants with their vision. She explained the smaller suggestions that came from the downtown business group were that they were not looking for a big redevelopment in the parking lot area, but they are not opposed to some changes if it was the ri ht thing. The HRA discussed downtown parking, noting it should be addressed. She noted she does not think there is a parking problem downtown and felt educating business owners with parking suggestions may help. The HRA discussed the traffic study,the possibility of closing traffic on Jackson south and using diagonal striping, and if there's safety concerns, as well as the businesses on Jackson. Mr. Carlton commented on the HLA traffic study and along with Public Works Director Justin Femrite, they outlined their suggestions to IIIA and the impacts of these changes. He stated that once the changes are made to Highway 169, there should no longer be a lot of traffic movement from Parrish across Highway 10 and over the tracks. He noted during construction,however,it will remain an unadvertised detour. He explained the pedestrian bridge would take a large footprint over Highway 10 and the railroad. He suggested having HLA overlay a pedestrian footbridge on the area to see the effect of it and how much space it would really take. He felt depending on where a footbridge is placed,it may also have to take people over the railroad tracks and is an option to include with the traffic study. Housing and Redevelopment Minutes Page 3 April 12,2021 ----------------------------- At 4:37 p.m. there was a power outage and power came back on after about 30 seconds. Commissioner Ovall's connection was lost until 4:43 p.m. Commissioner Wagner asked if HLA could provide feedback on future traffic flow after the Highway 169 construction is complete. Mr. Carlton stated HLA could probably provide a professional opinion of traffic flow in the spring of 2025 but the accuracy of that opinion. It was the consensus of the HRA to move forward with a traffic study and include Lowell and Parrish as part of the study area. The HRA then turned the discussion to the downtown. They discussed the proposed dock and how that will open up river activities. They discussed expansion of the walkway east along the river and its connection to the Saxon building site and future expansion to Ramsey. It was noted the requirements from the DNRand MnDOT make this connection challenging. Commissioner Chuba explained his viewpoints"'on the downtown Nfeltmportant to find out from the property owners what their future plans are,how do they see the conditions of their buildings, and are they able to find renters or tenants for their buildings, and to focus on the open spaces and preserving parking. The HRA discussed the goals of the HRA and how to focus those goals on other areas of the city that may be underutilized. The discussed the need to determine possible funding options. Ms. Eddy discusA e!%ftoper foru ere they had one developer attend. The developer focuses on daycares and private schools similar to the Goddard School. He stated he seemed interested and requ ted soil borings. She estimated the cost of four soil borings to be around$3,000. Commissioner Ovall asked about lining up Jackson Avenue with King Avenue or Lowell and would it help with traffic realignment. Mr. Carlton stated he can discuss this with Mr. Femrite but noted the 2001 Mississippi Connections plan outlined a grade separated realignment and wasn't sure if MnDOT would continue with that same proposal. Commissioner Wagner suggested extending whatever beautification plans are done in downtown towards Highway 169 on Main Street. Commissioner Swenson suggested the traffic study carry across how the intersections would be affected in the future such as Jackson and Railroad, and Main and Railroad. Commissioner Ovall had asked Ms. Eddy to distribute a handout of land sales comparables with area sales in the past two years. He discussed the numbers are lower than expected and felt$2 per foot seems too low. He stated he also does not feel apartments are comparable. He asked about selling the property at Main and Gates through a broker to get fair market cost. Housing and Redevelopment Minutes Page 4 April 12,2021 ----------------------------- Mr. Portner stated he can ask the broker that is selling the Activity Center to provide an estimate on selling the Main and Gates property. 3. Adjournment Chair Toth adjourned the meeting at 5:40 p.m. Minutes prepared by Jennifer Green. Tina Allard, City Clerk Larry Toth, Chair Housing&Redevelopment Authority City of Elk Regular Meeting of the Elk River River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, May 3, 2021 Members Present: Chair Larry Toth, Commissioners Denny Chuba, Nate Ovall,Jayme Swenson, and Jennifer Wagner Members Absent: None Staff Present: City Administrator Cal Portner,Economic Development Specialist Colleen Eddy, Planning Manager Zack Carlton,and Recordin SecretaryT Jennifer Green I. Call Meeting to Order Pursuant to due call and notice thereof, the meeting o `e`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 May 3, 2021,Agenda Ms. Eddy added item 7.6, The elta Apartments Housing TIF Application. Moved by Commissioner Wagner seconded by Commissioner Swenson to approve the May 3, 2021, HRA meeting agenda with the addition noted above. Motion carried 5- 4. Consent Agenda Moved by Commissioner Chuba and seconded by Commissioner Swenson to approve the consent agenda as follows: 4.1 February 25, 2021, 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 5-0. Housing and Redevelopment Minutes Page 2 May 3,2021 ----------------------------- 5. Open Forum No one appeared for Open Forum. 6. Public Hearings There were no public hearings. 7.1 Proclamation for Elk River Meats Chair Toth presented the Robecks with a proclamation for May 3,2021, as Elk River Meats Day. The HRA thanked the Robecks for their presence in the community for the past 50 years. 7.2 Downtown Beautification Ms. Eddy presented the staff report on beha' of Suzanne Fischer.XSherep6rted DERBA will be purchasing 24 baskets for the 2021 season at$90/basket for a total of$2160. Staff is also recommending securing a professional services contract for seasonal maintenance including daily water, maintenance, fertilizer and deadheading. The two proposals they received weren't available in time for tonight's packet and they were $16,673 from Yardworx Outdoor Services and$20,790 from Speedcutters Outdoor Maintenance LLC with a seasonal date range from May 1 to Sept. 30. She noted these proposals were not received in time for the packet and if the HRA wishes, and the amounts were higher than anticipated so they could request additional proposals again. Finally, she stated when DERBA orders the 2022 flowers this September, the HRA will purchase 26—23" H2O Saver Baskets at $89/pot for a total of$1950 and take them to the nursery this September to be used for next year's flowers Commissioner Ovall asked for clarification about Ms. Fischer mentioning she would try out one or two flower baskets using the new pots during the 2021 display season to ensure they would work well this year as well as feedback on what is viable for the flowers in the pots. He thought that was what was discussed at the last meeting. Commissioner Swenson asked if there was a deadline for purchasing for 2021. Ms. Eddy was not aware of a deadline. Chair Toth asked about direction for this year's flower purchases. Commissioner Wagner explained at the April DERBA meeting,the group approved to purchase of the flowers for 2021 at a cost of$95 per pot. She understood that Ms. Fischer was going out for bid to see what the cost would be for annual flower maintenance, and it seems the cost is double what could be done with city staff with a cost of$8200 for staff. She felt the pots don't have to be purchased today but the HRA does need to determine who will be taking care of the flowers DERBA is in the process of purchasing. Housing and Redevelopment Minutes Page 3 May 3,2021 ----------------------------- Chair Toth asked if the pots Suzanne purchased can be used downtown this year to see if they work. Commissioner Wagner indicated she thought the test pots would be tried out downtown this year. She noted she grew up in Benson which is one of the cities listed who have used the H2O pots and will find out from the mayor how they are working out. She indicated she is not interested in purchasing the H2O pots until the HRA receives feedback on how well they work in Minnesota. She felt more importantly,the HRA needs to determine how the pots the DERBA is purchasing will be maintained this year. Commissioner Ovall stated he recommends not going out to bid again and using city resources to ensure the baskets get watered properly. Commissioner Chuba stated he felt the cost of the bids were too much money and would recommend city staff to maintain the flowers. Commissioner Swenson agreed. Commissioner Wagner asked if there was any feedback from Tim Sevcik. Mr. Portner stated the recommendations he had received were changing the types of plants used, only having planters on one side of the street due to extreme heat and hiring seasonal staff to maintain the flowers. He indicated there is a challenging to hire seasonal employees and this maintenance would more than likely be done by regular maintenance staff—an option to have someone Commissioner Wagner disagreed with having flowers on one side of the street and felt professionals would provide the right kind of plant. Mr. Portner stated the numbers that staff presented last month is what they have to allocate. He's hopeful the plants will be hardier, and staff is trying to find a way to be more successful. He noted the H2O planters presented is only to ensure the flowers are watered and bridge the timing between when they could be watered. He stated this is for informational purposes only, the larger pots can be used on the poles, and discuss during budget talks a contract for next year. Commissioner Swenson asked about lights as an option in the future. Mr. Portner stated Ms. Fischer apologized not being able to present the information herself to explain pricing for the lights,but she will present that information at a future meeting. The HRA discussed either directing staff to maintain the flowers or approve one of the two maintenance proposals received and adjusting their quote to fit when the flowers arrive. Commissioner Wagner stated the flowers were being ordered by DERBA but was not sure when they are being delivered. Commissioner Swenson asked if staff had a recommendation for which company to choose. Housing and Redevelopment Minutes Page 4 May 3,2021 ----------------------------- Ms. Eddy stated both businesses met the qualifications, and the cost shows how labor intensive this type of work is. Moved by Commissioner Ovall seconded by Commissioner Chuba to approve the engagement of city staff and maintenance crews to maintain the downtown flower baskets for the 2021 season at a cost not to exceed $8200.00. Motion carried 5-0. Chair Toth asked about making a decision on purchasing the string lights. Commissioner Swenson indicated it could be discussed at,a future meeting. 7.3 Downtown Discussion Mr. Carlton presented the staff report. He stated they received two quotes,the proposals came in late Friday and earlier today, and he recommended proceeding with SFR for a total cost of$27,500 for the following: traffic study for$10,000; $2500 high level parking assessment for a needs-analysis downtown, and$15,000 pedestrian feasibility study for a grade-separated crossing at either above or below grade. Chair Toth asked Mr. Carlton if he thought it,was advant eous to do all 3 studies now rather than splitting them up. Mr. Carlton recommended proceeding'with ""e'traffic and parking study now and was a great place to begin. He noted due to the Comprehensive Plan update coming in the next six months,he felt it best to complete the pedestrian feasibility study after the Comprehensive Plan changes are finalized because the dialogue and language received in the downtown, which will not be, resented t ,eve , xe until.uext month. Commissioner Ovall stated he concurred. 40tmi Wagner asked for clarification. Mr. Carlton recommended waiting to proceed with the pedestrian feasibility study due to changes being presented to the scope of the downtown and land use guidance that came will be coming out of the Comprehensive Plan update. He suggested allowing the plan updates to be adopted and finalized before proceeding with the pedestrian feasibility study. Commissioner Ovall noted the parking and traffic study results may reveal different pedestrian movement routes,allowing even more flexibility,which is why it that makes sense to wait to proceed with the pedestrian bridge study. Chait Toth agreed with Commissioner Ovall. Mr. Carlton commented another unknown is the traffic flow once Highway 169 is completed in five years and the long-term impacts. Housing and Redevelopment Minutes Page 5 May 3,2021 ----------------------------- Commissioner Wagner stated she really dislikes making a decision on this when the information is verbally presented. She stated this seems different than she anticipated. She is surprised to not include the pedestrian bridge study. She requested in the future to present items when they are received before the meeting. Mr. Carlton stated he understood and stated there is nothing that says they can wait until another meeting. Chair Toth asked the impact of waiting to do the pedestrian study. He wasn't sure if the council had a specific timeline for the HRA to complete these items. Mr. Carlton stated he did not believe waiting would imp ct the results of the transportation assessment and the parking assessment. Commissioner Wagner stated she personally felt there was interest to`find out if a pedestrian bridge was feasible but was surprised others want to wait on the study and does understood the reasons for waiting and the cost was not cheap. She likes to be prepared to give an educated opinion. Commissioner Ovall stated to be,fair, the HRA asked Mr. Carlton what his opinion was. He asked for Commissioner Wagner to e ain her feelings and why she feels strongly for proceeding now instead of waiting,:;: Commissioner Wagner stated she wasn't are 'e Comprehensive Plan meeting was being held the next day and understands the reasons suggested for waiting until after that meeting. Chair Toth stated because the council asked the HRA to take over the project to not rush part of it and doesn't propose waiting either but wants to make sure they receive accurate information. Mr. Portner asked for Mr.;Carlton to explain when he recommends doing the pedestrian feasibility study Mr. Carlton recom Ndoie pedestrian feasibility study after the Comprehensive Plan is finalized. Mr. Portner also explained the federal government passing an infrastructure plan which could provide monies available to be in a better position to leverage those funds. He likened it to the chicken and egg planning,if you do not have a plan,you can't even ask for it. He noted having a plan would give the city a better position but also when you do the study would provide the most benefit. Commissioner Chuba stated he would like to see the traffic study and parking study done at this time and in the future,the pedestrian study done as soon as possible but after the Comprehensive Plan is finalized. Mr. Carlton noted if the HRA wants additional clarification,it can be discussed at the first meeting in June, or the HRA could proceed with moving forward tonight. Housing and Redevelopment Minutes Page 6 May 3,2021 ----------------------------- Chair Toth asked if the studies should wait until after tomorrow's Comprehensive Plan meeting. Moved by Commissioner Chuba seconded by Commissioner Ovall to approve the proposed presented by SRF for the traffic study and parking study as outlined in the proposal. Motion carried 5-0. 7.4 HRA Housing Rehabilitation Loan Program Update Ms. Eddy presented the staff report. Chair Toth commented that recent funding requests have been over the HRA's $25,000 threshold and wondered if the threshold be increased because the HRA has funds available to do so. Commissioner Swenson asked if residents were unable to receive finanNheom the HRA, can still find alternative sources of aid. Commissioner Ovall noted CEE noted in their January presentation that the applicants,if they qualify, are still receiving funding some ce else so those dollars are still coming into our community for improvements. Ms. Eddy indicated most applicants are"'receiving fun `ng,if not by the city, funding through other sources. 7.5 Main and Gates Redevelopment Update Ms. Eddy presented the staff report: Commissioner Chuba asked for clarification on the cost of dirt and seed that was presented at last month's meeting. Ms. Eddy stated city staff is providing the services. Commissioner Chuba stated that sounds reasonable to him but asked the city to put themselves in the developer's chair and provide the same courtesy the city receives,not using city staff but allowing a less costly way to achieve the desired outcome. He was in support of moving ahead with soil borings. He was somewhat underwhelmed with developer's forum and asked for an update. Ms. Eddy stated she has not heard much feedback from the forum,noting they are still marketing the promotional informational video on LinkedIn. Commissioner Chuba noted the developer that was interested will like the results of the soil borings. Housing and Redevelopment Minutes Page 7 May 3,2021 ----------------------------- Moved by Commissioner Ovall seconded by Commissioner Chuba to approve the proposal from American Engineering Testing, Inc., in the amount of$3,000 for Geotechnical Exploration/soil borings at the Main and Gates Redevelopment site as outlined in the staff report. Motion carried 5-0. Councilmember Wagner addressed Commissioner Chuba's comment, stating all HRA members agreed that the quote the city received for reseeding was for work that was significantly more than what was needed or recommended. She stated this topic was discussed during the council work session;it was very clear that the city was held to the same standard as a private developer would be held. She noted the quotes were more than what was needed or required by ordinance and the city tries,_ :be good I stewards of city funds. I&I " IN Mr. Portner stated the goal of reseeding was miscommunicated. 7.6 The Delta Apartments Housing TIF Application Mr. Portner along with Mikayla Huot with Baker Tilly presented the staff report. They explained the TIF application request, outlined in the staff report,by Stonewood Development,LLC's proposal to construct two 90-unit residential apartment buildings on the former Saxon Auto site with underground parking. Phase 1 is expected to commence construction in 2021. The applicant intends Phase 2 shortly thereafter but has indicated construction could start 2-3 years after Phase 1. r= Ms. Huot explaine' e req"'est is for Asisdcto include 90% of incremental tax revenues for up to 26 years. Consistent with the original application submitted by Sun Rae Apartments, LLC, the application includes an approximate $31.556 million project funded through a combination of debt and equity. The applicant's supporting financial information includes updated sources and uses of funds with a revised total development cost of$34.7 million with 80% as debt financing and 20% as private equity. She explained this financial assistance through pay-as-you-go TIF would provide additional revenues to support the required level of debt and project cash flow to repay annual debt service payments. Typical extraordinary redevelopment costs that cannot be supported solely by the project alone could justify the need for public financial assistance and allow the project to proceed as proposed to provide appropriate upfront funding and meet the minimum debt coverage requirements. The applicant indicated city financial assistance is necessary for the project to proceed. She stated because city policy limits redevelopment project assistance to 15 years it requires deviation from the policy. She said the Joint Finance Committee reviewed the request on February 23, 2021 and the committee consensus was to recommend HRA approval of a 20-year TIF district for Phase 1 and 20 years for Phase 2 with an aggregate of 26 years. The group states that the deviation was due to exuberant circumstances that this project would not be completed with the maximum 15 years allowed per the policy. Chair Toth asked if they are approving this proposal without some of the final paperwork. Housing and Redevelopment Minutes Page 8 May 3,2021 ----------------------------- Ms. Huot stated the action requested tonight is the city council adoption of the TIF plan and creation of the TIF district. She indicated the appraisals,which have been received and will validate this need to increase the amount,will support and the final contract would come after that. Commissioner Wagner stated she would like to hear from those who sit on the Finance Committee as she feels this deviation from the policy is pretty significant and asked if the city has ever deviated from the 15-year policy. Ms. Huot stated she could not speak for certain,but her recollection was there have been longer term districts,but the policy has been modified several times with one being term limits. Commissioner Ovall stated he is lacking all the context of the details of what was discussed. He stated the tone from the Finance Committee was there's a pecking order with TIF being job creation first and then redevelopment of old housing and industrial stock. He felt TIF is a good tool to facilitate redevelopment. Lastly is housing, market rate or affordable. She stated they have heard over the years that while the policy is 15 years,it is out of alignment with state guidelines. He felt that this proposal of pay as you go is attractive with these factors, along with the site itself. Chair Toth felt the appraisals being received are answering some of the final questions. He noted there may be another TIF district possibility with the Main and Gates redevelopment. He stated to him,the developer has made the efforts asked by the city. Ms. Huot stated TIF 24 was a 26-year TIF,but it was redevelopment,not housing. Commissioner Ovall stated this proposal is somewhat of a hybrid with redevelopment and housing components. ,. Commissioner Wagner also agreed there was a lot of attractiveness to this proposal and this area has been poised to be redevelopment for several years. She stated it's always in the back of her mind to ensure we don't find ourselves overcommitted in large TIF districts. Moved by Commissioner Ovall and seconded by Commissioner Chuba to recommend support for the application to establish a Phase 120-year TIF district as requested by Stonewood Development, LLC, and 20 years for Phase 2 with an aggregate of 26 years for construction of two 90-unit residential market-rate apartment buildings with underground parking on the former Saxon Auto site as outlined in the staff report. Motion carried 5-0. 8. Adjournment Chair Toth adjourned the meeting at 6:35 p.m. Housing and Redevelopment Minutes Page 9 May 3,2021 ----------------------------- Minutes prepared by Jennifer Green. Tina Allard, City Clerk Larry Toth, Chair Housing&Redevelopment Authority