04-05-2021 HRA MINRegular Meeting of the Elk 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 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 April 5, 2021, Agenda
Moved by Commissioner Swenson seconded by Commissioner Chuba to approve the
April 5, 2021, HRA meeting agenda.
Motion carried 5-0.
4. Consent Agenda
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.
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April 5, 2021
Motion carried 5-0.
5. Open Forum
No one appeared for Open Forum.
6. Public Hearings
There were no public hearings.
7.1 Downtown Beautification
Page 2
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. Fischer 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 is reluctant 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 Swenson stated she liked the lights idea Ms. Fischer presented.
Commissioner Wagner asked for clarification of the staff and labor used for 2020.
Ms. Fischer stated Street and Park 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.
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April 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 sun.
Ms. Fischer stated Mr. Sevcik suggested flowers on south side and banners on the north side
to reduce the basked fatality rate.
Chair Toth asked what the downtown association group's interest was in these flowers.
Ms. Fischer stated they were very interested and wanted to know how to best help and what
the most viable, affordable options were available.
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
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April 5, 2021
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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 from last year.
Ms. Fischer did not know but she found the best retail price currently 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 Ovall 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.
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April 5, 202]
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 stated the 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 he was.
Commissioner Wagner stated the city needs to help be a bigger part of beautifying the spaces
it owns and holds events. She stated in 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.
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April 5, 2021
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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 Update
Ms. Eddy presented the staff report.
Chair Toth asked about the reason behind applications that do not seem to materialize.
Ms. Eddy stated in many cases the residents needed more than the allowed $25,000 policy
limit. She stated even if our program does not fund the rehabilitation, the homes are still
receiving renovated and accomplishing the end goal 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
Ms. Eddy presented the staff report.
Commissioner 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.
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April 5, 2021
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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 ways to provide the coverage and would be happy to
review the bids.
Commissioner Wagner asked about the timeline requirements to 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. Eddy and see what will 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
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April 5, 2021
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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 into Uppertown. 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 what the arrangement 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. Eddy 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.
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April 5, 2021
9. Adjournment
Chair Toth adjourned the meeting at 6:47 p.m.
Minutes prepared by Jennifer Green.
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Tina Allard, City -Clerk
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Housing & Redevelopment Authority
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