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12-04-2006 DTMIN MEETING OF THE ELK RIVER DOWNTOWN REDEVELOPMENT PLAN TASKFORCE HELD AT ELK RIVER CITY HALL MONDAY, DECEMBER 4, 2006 Members Present: Stewart Wilson, HRA Chair; Louise Kuester, HRA Commissioner; Larry Toth, HRA Commissioner; Jean Lieser, HRA Commissioner; Lance Lindberg, Heritage Preservation Commissioner; Dana Anderson, Planning Commissioner; Mike Niziolek, Parks & Recreation Commissioner; Dan Tveite, EDA Commissioner; Dave Rymanowski, Business Representative – First National Bank; Keith Holme, Business Representative (Kemper Drug); Mark Urista, Business Representative (Coldwell Banker Vision); Molly Nadeau-Peterson, Resident Representative; John Anderson, Resident Representative Staff Present: Community Development Director Scott Clark, Director of Economic Development Catherine Mehelich, Park & Recreation Director Bill Maertz and Assistant Director of Economic Development, Heidi Steinmetz Others Present: Stacie Kvilvang of Ehlers & Associates, Inc. 1. Welcome/Purpose of Meeting/Introduction of New Member Stacie Kvilvang of Ehlers & Associates welcomed the taskforce members to their second meeting and introduced new member John Anderson. Along with member Nadeau-Peterson, Mr. Anderson will serve as a resident representative. Ms. Kvilvang reviewed the following main goals of tonight’s meeting:  Finalize redevelopment area boundary  Redefine downtown  Complete a Strength Weaknesses Opportunities and Threats (SWOT) analysis 2. Approve November 6, 2006 Minutes / Meeting Recap The taskforce members approved the November 6, 2006 minutes and the following taskforce mission statement: “To develop a comprehensive plan that will redefine the “greater downtown area” to preserve its historical character while promoting the future viability of the community. Maximum public input will be gathered to create and assess alternatives resulting in a formal redevelopment plan with a combination of a master vision, working policies, specific area recommendations and implementation priorities.” Ms. Kvilvang asked if the taskforce had any questions about the reading material that was provided at last month’s meeting: the Historic Contexts Study, the Market Analysis and the Planning & Project History. There were no questions or comments. 3. Finalize Redevelopment Area Boundary Community Development Director Scott Clark presented the taskforce’s redevelopment area boundary as discussed/updated at last month’s meeting. He stated that the redevelopment area includes four key components:  The “core” commercial/retail areas (both the north and south sides of Hwy 10) Downtown Redevelopment Plan Taskforce Minutes Page 2 December 4, 2006 ------------------------------------------  Adjacent single family neighborhoods  Critical recreational amenities (river, Lions Park, Handke)  A connection to Hwy 169 Member Niziolek inquired about how the Houlton farm fits within the boundary and mentioned that adding more riverfront property to the boundary will improve the marketability of future redevelopment in the area. Member Rymanowski stated concern that the boundary is too large. Member Lindberg concurred and asked that the single family neighborhoods be removed from the redevelopment area. Staff responded that including the housing stock will better allow for the restoration and rehabilitation of those neighborhoods. Members Tveite, Urista, Toth and Lieser stated that they prefer the boundary as presented because it incorporates the “greater downtown area” which allows a global and comprehensive perspective to this project. Member Lieser asked if more homes could be added within the boundary at a later date and staff responded “yes.” Member Wilson added that the current boundary includes components important to the taskforce as a whole. Member Holme stated that he approves of the boundary as presented because the “core” downtown area affects the “greater downtown area.” Member Lindberg restated that the single family neighborhoods should be removed from the redevelopment area boundary. Member Wilson responded that it will be healthier to include the homes. Member Anderson added that he is in favor of natural buffers within the redevelopment plan. 4. Elements of a Redevelopment Plan and How It Will Be Used Director of Economic Development Catherine Mehelich reviewed the following elements of a typical redevelopment plan. These elements will be incorporated into the taskforce’s final plan.  Vision  Policies o Land Use o Rehabilitation o Market o Transportation o Design & Regulatory o Property Acquisition o Redevelopment and Land Use o Economic Development  Specific Area Recommendations  Implementation Priorities Ms. Mehelich also reviewed the following ways in which the taskforce’s final plan will be used:  Serves as a “blue print” for City Council, Planning Commission and other groups to make Downtown Redevelopment Plan Taskforce Minutes Page 3 December 4, 2006 ------------------------------------------ future decisions  Programming elements into the City’s Capital Improvement Plan  Programming elements into the City’s Parks Capital Improvement Plan  Establishment of public purpose  Serves as an enhancement for future grant applications  Establishes a policy context for future ordinance or program modifications, e.g. Heritage Preservation Commission to construct a historic district ordinance to preserve specific properties  Community consensus  Promotion piece to developers for future redevelopment efforts  Serves as work plan for staff and resources  Establishes expectations for market and financial feasibility for future proposals 5. Redefining Downtown Review Homework Ms. Kvilvang asked each taskforce member to read aloud their responses to both “homework” questions. Taskforce members provided Assistant Director of Economic Development with their responses prior to the meeting, which allowed her to present the below similarities among responses: What makes a downtown successful?  “Heart” or center  Nostalgia  Authenticity  Unique/traditional (sets us apart from suburban development)  Past, present and future  Shopping/eating What does downtown mean to you?  Vitality  Interest, not necessity  Commercial, retail and service  Connectivity, transition, cohesive  New residential  Accessibility o Pedestrians o Traffic flow/access points o River  History  Activities/amenities  Aesthetically pleasing  Balance of old and new Dynamics of Change Scott Clark presented information regarding how Elk River has changed over the years. He presented a commercial radius map, which visually indicated downtown’s size in relationship to the size of the commercial areas along Hwy 169. Mr. Clark and the taskforce discussed that Hwy 10 downtown used to be Elk River’s main commercial area but now Elk River’s main commercial area is Downtown Redevelopment Plan Taskforce Minutes Page 4 December 4, 2006 ------------------------------------------ along Hwy 169. Mr. Clark also discussed the competitive advantages that Ramsey and Otsego may have over Elk River. Member Holme commented that he is concerned about “tying” downtown north of Hwy 10 together with downtown south of Hwy 10 due to the physical and safety constraints to cross Hwy 10. He also mentioned his concern that there is no grocery store downtown. Member Toth added that downtown does not mean much to newer Elk River residents, who are a large portion of Elk River’s population and that the taskforce needs to figure out how to get those newer residents downtown. Member Toth also agreed with member Holme that there needs to be a grocery store downtown. Strengths Weaknesses Opportunities and Threats (SWOT) Analysis The taskforce broke into four small groups and completed a SWOT analysis. The results of the analysis are attached to these minutes. Question/Answer Session After the SWOT was completed, the taskforce answered the following question: Is the former/current model of downtown still viable? Why or why not? Twelve taskforce members answered “no” and one member was unsure. Additional comments are attached to these minutes. 6. Next Steps Member Rymanowski asked if future meetings will last three hours. Ms. Kvilvang indicated that members should plan on meeting for three hours but that some meetings may not last that long. She added that a typical redevelopment plan takes twelve meetings to complete rather than the taskforce’s estimated eight meetings. She and staff feel that in respect to members’ time, eight meetings will allow the plan to be completed before the busy summer season. 7. Final Comments Each taskforce member stated what he/she thought about the second meeting. Most members indicated that they thought the SWOT analysis and final question were eye opening. Submitted by, Heidi Steinmetz Assistant Director of Economic Development SWOT Analysis STRENGTHS WEAKNESSES  Neighborhood Schools  Small and limited geographic area  River  Small critical mass  Limited interest in going  Businesses that are easily accessible Downtown by people  Nice homes  Everyone knows your name  Churches  Age of existing real estate  Authentic small town  Lack of reinvestment character (buildings)  Highway 10 and railroad divides  Opportunity for individually owned area and people don’t want to businesses (affordable and non cross national chain)  Limited access to River  Personal Touch – Everyone knows  Parking your name  No grocery store  Nostalgia/sentiment  Lack of variety in businesses  Identifiable location  Not pedestrian friendly (snow  Variety of services issues, biking, etc)  Charm/Character (lights,  Traffic congestion streets, etc.)  Delivery trucks  Local financial institutions  Lack of fine dining (anchors)  Lack of benches or places to sit outside  Safe environment  New residents have an unfamiliarity with  Public gathering places (new Downtown park)  Limited connectivity of north and  Proximity to Otsego retail south areas  Heritage/history  Market saturation  Connectivity (Highway 10, rail road and transportation)  Public facilities in close proximity (City Hall, Library, future YMCA) Note: 1. Items highlighted in bold under Strengths are things we need to really build upon as we move forward. 2. Items highlighted in bold under Weaknesses are things we need to be aware of and not ignore as we move forward. OPPORTUNITIES THREATS  New retail and business uses  Competing retail both locally (internal) and from surrounding  New customer base communities (external)  Rehabilitation of existing  Lack of commuter rail stop in Downtown buildings  Possible bypass of Highway 10  More public gathering spaces for social activities  Continued expansion of  Outdoor dining Otsego/Highway 101 area  Blank slate north of railroad tracks  Traffic issues (congestion,  More riverfront development increased traffic, crossing  More access to River Highway 10, etc)  Tie north and south areas  Value of housing stock going down together  Land speculators (buying homes and renting them until they can put together  More residential large enough parcel to develop on) development  Economic fluctuations in general  Moving west of Downtown to  Noise (Highway 10 and railroad) develop  Not leasing out existing retail in new  Enhance Heinke Center redevelopment projects  Current redevelopment efforts lend  Land locked for River access/trail credibility to outside investors  Market saturation  North Star Rail and depot  Raising rents for existing businesses location  Through traffic  Screen railroad tracks and create buffers  Increasing land acquisition costs  Put in trail system along the  Changes in eminent domain laws River  Fear of change  Promote an authentic Downtown  Construction stress on existing businesses  Incubator businesses  Lifestyle to support Downtown (convenience, price vs. nostalgia, lack of  Corridor to cross Highway 10 and interest and lack of wanted/needed railroad tracks services)  Attract more residents to live  Cost to upkeep aging real estate Downtown  Interest in viable business that wants to expand (no are to expand to Downtown or viability is no longer there since interest has moved elsewhere in the community) Note: 1. Items highlighted in bold under Opportunities are things we need to look to do in the future and takes into account our strengths and weaknesses as we move forward. 2. Items highlighted in bold under Threats are things we need to address to stay competitive. Question: Is the former/current model of downtown still viable? Why or why not. Answers: 12 Task Force members answered no to the question and 1 was unsure. Comments were as follows:  Need to do something so not surpassed by Otsego and others  Community has outgrown Downtown  Uses have moved to Highway 169  South side will be more institutional and north side will have opportunity for commerce  Kept the problems and didn’t look at opportunities  Lack of variety and excitement  Generation X’ers and Y’s don’t have a connection to Downtown and there aren’t enough baby boomers to remember how it used to be  Not viable as retail due to geographic constraints  Can be a residential and service area  Needs to be more trendy area  Too much commerce to fit into Downtown  Concerns over zoning to allow commercial/mixed-use in developing area of Elk River and competition it will create with this area  Don’t know if it works and won’t know until the dust settles from the current redevelopment projects Task Force Strengths, Weaknesses Opportunities and Threats (SWOT) Analysis STRENGTHS WEAKNESSES  Neighborhood Schools  Small and limited geographic area  River  Small critical mass  Businesses that are easily accessible  Limited interest in going Downtown by people  Nice homes  Everyone knows your name  Churches  Age of existing real estate  Authentic small town character (buildings)  Lack of reinvestment  Opportunity for individually owned businesses (affordable  Highway 10 and railroad divides area and people and non national chain) don’t want to cross  Personal Touch – Everyone knows your name  Limited access to River  Nostalgia/sentiment  Parking  Identifiable location  No grocery store  Variety of services  Lack of variety in businesses  Charm/Character (lights, streets, etc.)  Not pedestrian friendly (snow issues, biking, etc)  Local financial institutions (anchors)  Traffic congestion  Safe environment  Delivery trucks  Public gathering places (new park)  Lack of fine dining  Proximity to Otsego retail  Lack of benches or places to sit outside  Heritage/history  New residents have an unfamiliarity with Downtown  Connectivity (Highway 10, rail road and transportation)  Limited connectivity of north and south areas  Public facilities in close proximity (City Hall, Library, future  Market saturation YMCA) Note: Items highlighted in bold under Strengths are things we need to really build upon as we move forward. Items highlighted in bold under Weaknesses are things we need to be aware of and not ignore as we move forward. OPPORTUNITIES THREATS  New retail and business uses  Competing retail both locally (internal) and from surrounding communities (external)  New customer base  Lack of commuter rail stop in Downtown  Rehabilitation of existing buildings  Possible bypass of Highway 10  More public gathering spaces for social activities  Continued expansion of Otsego/Highway 101 area  Outdoor dining  Traffic issues (congestion, increased traffic, crossing  Blank slate north of railroad tracks Highway 10, etc)  More riverfront development  Value of housing stock going down  More access to River  Land speculators (buying homes and renting them until they can  Tie north and south areas together put together large enough parcel to develop on)  More residential development  Economic fluctuations in general  Moving west of Downtown to develop  Noise (Highway 10 and railroad)  Enhance Heinke Center  Not leasing out existing retail in new redevelopment projects  Current redevelopment efforts lend credibility  Land locked for River access/trail  to outside investors  Market saturation  North Star Rail and depot location  Raising rents for existing businesses  Screen railroad tracks and create buffers  Through traffic  Put in trail system along the River  Increasing land acquisition costs  Promote an authentic Downtown  Changes in eminent domain laws  Incubator businesses  Fear of change  Corridor to cross Highway 10 and railroad tracks  Construction stress on existing businesses  Attract more residents to live Downtown  Lifestyle to support Downtown (convenience, price vs. nostalgia, lack of interest and lack of wanted/needed services)  Cost to upkeep aging real estate  Interest in viable business that wants to expand (no are to expand to Downtown or viability is no longer there since interest has moved elsewhere in the community) Note: Items highlighted in bold under Opportunities are things we need to look to do in the future and takes into account our strengths and weaknesses as we move forward. Items highlighted in bold under Threats are things we need to address to stay competitive. Task Force Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis STRENGTHS WEAKNESSES OPPORTUNITIES THREATS  Neighborhood Schools  Small and limited geographic area  New retail and business uses  Competing retail both locally (internal) and from surrounding communities (external)  River  Small critical mass  New customer base  Lack of commuter rail stop in Downtown  Businesses that are easily accessible  Limited interest in going Downtown  Rehabilitation of existing buildings by people  Possible bypass of Highway 10  Nice homes  More public gathering spaces for social  Everyone knows your name  Continued expansion of Otsego/Highway 101 area activities  Churches  Age of existing real estate  Outdoor dining  Traffic issues (congestion, increased traffic,  Authentic small town character crossing Highway 10, etc)  Lack of reinvestment  Blank slate north of railroad tracks (buildings)  Value of housing stock going down  Opportunity for individually owned  Highway 10 and railroad divides area  More riverfront development  Land speculators (buying homes and renting them until businesses (affordable and non and people don’t want to cross  More access to River national chain) they can put together large enough parcel to develop  Limited access to River on)  Tie north and south areas together  Personal Touch – Everyone knows  Parking your name  Economic fluctuations in general  More residential development  No grocery store  Nostalgia/sentiment  Noise (Highway 10 and railroad)  Moving west of Downtown to develop  Lack of variety in businesses  Identifiable location  Not leasing out existing retail in new redevelopment  Enhance Heinke Center projects  Not pedestrian friendly (snow issues,  Variety of services  Current redevelopment efforts lend biking, etc)  Land locked for River access/trail credibility  Charm/Character (lights, streets,  Traffic congestion etc.)  Market saturation  to outside investors  Delivery trucks  Local financial institutions  Raising rents for existing businesses  North Star Rail and depot location (anchors)  Lack of fine dining  Through traffic  Screen railroad tracks and create buffers  Safe environment  Lack of benches or places to sit outside  Increasing land acquisition costs  Put in trail system along the River  Public gathering places (new  New residents have an unfamiliarity with  Changes in eminent domain laws park)  Promote an authentic Downtown Downtown  Fear of change  Proximity to Otsego retail  Incubator businesses  Limited connectivity of north and  Construction stress on existing businesses south areas  Heritage/history  Corridor to cross Highway 10 and railroad tracks  Market saturation  Lifestyle to support Downtown (convenience, price vs.  Connectivity (Highway 10, rail nostalgia, lack of interest and lack of wanted/needed road and transportation)  Attract more residents to live Downtown services)  Public facilities in close proximity  Cost to upkeep aging real estate (City Hall, Library, future YMCA)  Interest in viable business that wants to expand (no are to expand to Downtown or viability is no longer there since interest has moved elsewhere in the community) Note: Items highlighted in bold under Strengths are things we need to really build upon as we move forward. Items highlighted in bold under Weaknesses are things we need to be aware of and not ignore as we move forward. Items highlighted in bold under Opportunities are things we need to look to do in the future and takes into account our strengths and weaknesses as we move forward. Items highlighted in bold under Threats are things we need to address to stay competitive.