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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. Housing and Redevelopment Minutes 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. Housing and Redevelopment Minutes Page 3 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 Housing and Redevelopment Minutes April 5, 2021 Page 4 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. Housing and Redevelopment Minutes Page 5 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. Housing and Redevelopment Minutes April 5, 2021 ---------------------------- Page 6 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. Housing and Redevelopment Minutes April 5, 2021 Page 7 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 Housing and Redevelopment Minutes April 5, 2021 Page 8 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. Housing and Redevelopment Minutes April 5, 2021 9. Adjournment Chair Toth adjourned the meeting at 6:47 p.m. Minutes prepared by Jennifer Green. 4CAZ - Tina Allard, City -Clerk L' , Toth hair Housing & Redevelopment Authority Page 9