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4.1. DRAFT HRA MINUTES 02-07-2022 City of Elk Regular Meeting of the Elk River River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, January 3, 2022 Members Present: Chair Larry Toth, Commissioners Denny Chuba, Nate Ovall,Jayme Swenson, and Jennifer Wagner Members Absent: None A* Staff Present: Economic Development Director Brent O'Neil 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 January 3, 2022, Agenda Moved by Commissioner Wagner and seconded by Commissioner Chuba to approve the January 3, 2022, HRA meeting agenda as presented. Motion carried 5- 4. Consent Agenda Moved by Commissioner Chuba and seconded by Commissioner Swenson to approve the consent agenda as follows: 4.1 Meeting Minutes from December 6, 2021. 4.2 Check registers as outlined in the staff report. 4.3 Balance sheets as outlined in the staff report. 4.4 Revenue/expenditure reports as outlined in the staff report. Motion carried 5-0. S. Open Forum No one appeared for Open Forum. Housing and Redevelopment Minutes Page 2 January 3,2022 ----------------------------- 6. Public Hearings There were no public hearings. 7.1 TIF District Number 28 —Jackson Hills II Mr. O'Neil presented the staff report. Chair Toth asked for clarification about the size of the peat bog# relation to the proposed project and the TIF boundaries. Mr. O'Neil clarified the location of the project outlined in red was the size of the plat for the parcel. He indicated TIF boundaries are aligned to the parameters of the plat. The parcel is a 4-acre site and noted the request for TIF fund are for the first apartment building to be constructed on the southern third of the parcel. He also explained the TIF plan will set parameters for how many and what buildings are allowed to receive funds. He explained the parcel is 4 acres and will be parallel to the existing Jackson Square building. Mikaela Huot, director at BakerTilly, detailed the project and her review of it. She explained the parameters of the project and clarified the exact boundaries of the first building have not been submitted by the applicant. Therefore,to avoid replating, they are proceeding this way. Based on this current site,if the applicant develops future phases, they would be included within the tax increment district, they will generate additional increment, and that increment would require a new application and review to show the extraordinary costs could be reimbursed. Future phases would require a new public hearing and approval as it this plan capped by the dollar amount associated with the present phase. Ms. Huot further explained details regarding the initial application and a change from the application doing further due diligence regarding soil correction costs,which were initially estimated up to $850 Qp0.,She stated the soil correction costs are now estimated at just over $1,000,000 dollars. Commissioner C 'uba stated he understood there could be future development on the site, but he hoped access to the future site from the proposed site as he couldn't imagine access off of Jackson Avenue. Commissioner Chuba asked if something should be more solidified with a condition regarding access to the site. He also asked about the remainder of the site and what the zoning is and what would be allowed on the site. He asked if they would be paying park -a n fees. Mr. O'Neil state the developer currently has control over the site and all future movement would be through 6`'' Street and take place through the site with engineering staff reviewing and signing off on any additional access points on Jackson Avenue.Additional terms and conditions regarding these details could be part of the final agreement. He stated future buildings on the site would need to be residential properties and the property reviewed for compliance with the zoning ordinance subject to final design. Park dedication fees would be required to the city. Housing and Redevelopment Minutes Page 3 January 3,2022 ----------------------------- Commissioner Wagner stated she supports the TIF project but has concerns with the high cost of soil remediation on this site. She stated they recently turned down a similar request located nearby for similar soil concerns. She asked if TIF were awarded,would the city be liable in the future if there were any structural problems with the buildings. She states she needs to have answers to the taxpayers if future problems occur. Mr. O'Neil stated there will be more detailed engineering plans that will need to be completed, followed, and inspected during the sequence of designing the site, and he anticipates the mitigation would need to be sufficient to support a building. He felt an answer about city liability would have to be answered by legal counsel. Commissioner Ovall stated the city could always be sued but the city would have to be shown to be negligent in this project and felt based upon what we know at this time,we couldn't ensure that we would be liable for any future roblems. Commissioner Chuba asked if a hold-harmless clause could be added. Ms. Huot stated while she couldn't answer if the city may be liable in the futu."', she did note the structure is pay as you go, and the applicant would be paid as the mitigation is made and clean up of the site is done per the standard of the expectation of receiving TIF funds. There are conditions in the agreement itself that would hold them responsible for following or they wouldn't receive the TIF funds. She felt working with the city attorney could take steps to ensure the city is held harmless if the corrections were made to make the site buildable to ensure future safety and,liability concerns. Chair Toth stated he presumed our en will have reviewed the reports from the soil borings to know how deep the bog is. Mr. O'Neil stated they have received a report from the applicant's engineers,who have indicated there is 5-7 feet of bog that needs to be mitigated. He stated it would be the engineer's responsibility to have that investigated and a mitigation plan in place,which would follow the city's permitting process. Mr. O'Neil commented on the financial analysis presented by Ms. Huot. The developer will be looking at a funding project through MHFA for funding to supplement the project budget and if awarded, the city would review to revisit the project and determine if additional monies would change the scope and scale and perhaps the project can grow. The notification of awards comes in April of 2022. The applicant is also exploring federal fundings that may be available. Ms. Huot stated if the project is awarded the grant funding,the city would have to review TIF based upon the amount rewarded. By April,we will know what is warranted and if it would affect the final TIF award. Still on the path that we knew. Contract will come later. Moved by Commissioner Chuba and seconded by Commissioner Ovall to recommend approval of the consideration of approval of the TIF Number 28 Plan and TIF District as outlined in the staff report. Housing and Redevelopment Minutes Page 4 January 3,2022 ----------------------------- Motion carried 5-0. 7.2 HRA Housing Rehabilitation Loan Program Update Mr. O'Neil presented the staff report. He noted he would be working with the Star News to redesign advertisements for a new fresher look to appeal residents and promote the rehabilitation loan program. 7.3. General Updates Mr. O'Neil stated he will be presenting a program to the HRA called Placer.ai which uses geographic cell phone data to assist with market analysis. He stated he presented this to the EDA for their review last month. He stated he will distribute ute mo e,information to the HRA prior to the meeting. Commissioner Wagner suggested a joint work session with the EDA to receive the information. Chair Toth asked how this information will be relevant to housing. Mr. O'Neil briefly explained how some; f the data ma e used to correlate housing needs. 7.4. Main and Gates Development Mr. O'Neil introduced Dean Dovolis'ofDfk ",rchitecture and Matt L. Mullins with The Mullins Group, Inc.,who presented a PowerPoint presentation outlining a preliminary proposal for the Main and Gates redevelopment property. They stated they were requesting some initial feedback from the HRA as they continue to move forward with their project. After reviewing the preliminary concept presented, the HRA discussed preferred access to the proposed building off Gates Avenue, the parking lot location for access to the commercial businesses, and a request to keep as many existing trees as possible. The HRA also preferred the mixed uses combining residential and commercial but wondered what type of commercial uses draw the public in. There were concerns about the preliminary architectural components for a 4-story building, specifically if this is being proposed as market rate housing and suggested some modifications to the roof line and faces of the building, noting it was situated on a main gateway through the city gaining high visibility. The HRA felt it important to receive community engagement as there may be important feedback from the surrounding property owners. 8. Adjournment Housing and Redevelopment Minutes Page 5 January 3,2022 ----------------------------- Chair Toth adjourned the meeting at 6:34 p.m. Minutes prepared by Jennifer Green. Tina Allard, City Clerk Larry Toth, Chair Housing&Redevelopment Authority