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4.1. DRAFT HRA MEETING MINUTES 04-03-2023 (2 SETS) Regular Meeting of the Elk River Housing and Redevelopment Authority Held at the Elk River City Hall Monday, March 6, 2023 Members Present: Chair Denny Chuba, Commissioners Jayme Cannon, Jill Larson-Vito, Nate Ovall, and Jennifer Wagner Members Absent: None Staff Present: Economic Development Director Brent O’Neil, Economic Development Specialist Joshua Mollan, and Sr. Administrative Assistant/Recording Secretary Jennifer Green 1. 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 Chuba. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider March 6, 2023, Agenda Moved by Commissioner Wagner and seconded by Commissioner Ovall to approve the March 6, 2023, HRA meeting agenda as presented. Motion carried 5-0. 4. Consent Agenda Moved by Commissioner Ovall and seconded by Commissioner Larson-Vito to approve the consent agenda as follows: 4.1 February 6, 2023, HRA Regular 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 reports as outlined in the staff report. Motion carried 5-0. 5. Open Forum There was no one present for Open Forum. Housing and Redevelopment Minutes Page 2 March 6, 2023 ----------------------------- 6.1 HRA Housing Rehabilitation Loan Update Mr. Mollan presented the staff report. He noted 9 additional contacts regarding the loan program resulting from the ERMU mailer, which generated 3 new loan applications in process. He stated one loan was supposed to close but the applicant withdrew due to “too much paperwork” and will complete the rehabilitation project with savings. The HRA asked Mr. Mollan to reach out to CEE for feedback and loan document information regarding the withdrawal. 6.2 Demolition Contract for 724 Main Street Mr. O’Neil presented the staff report. He indicated for the past 3-4 weeks they have been working with the low bidder Veit to initiate demolition work for the building at 724 Main Street. Veit further investigated the site to inspect the property and clarify areas of their $64,500 bid and due to the age of the building and the unknown conditions that may come up during the demolition process, they may experience things requiring change orders and/or separate contracts. He noted that written documentation will clarify the demolition work to be completed. Mr. O’Neil stated they learned the water turnoff is broken and an alternative is to leave the south foundation wall in place, which has the advantage of shoring up that side of the building, and no sidewalk pavers would be removed allowing for a smooth property line connection. Additional items have been discovered such as an irrigation junction box which is 10 inches from the edge of the building and will work with the water contractor. Approval of the contract tonight should include the possibility of a few add-on costs that may arise during the demolition process. Commissioner Cannon asked if he felt the bid amount and $20,000 stated in the staff report would be sufficient. Mr. O’Neil felt comfortable that it would be under but is working with unknowns. Commissioner Ovall stated he was surprised that demolitions costs for this project are so high, comparing it to previous demolition costs. He noted this is three times that amount and is having a hard time reconciling these costs. Mr. O’Neil stated the demolition costs were indeed higher than he was anticipating and explained some reasons for the cost: the building is quite a bit larger than a residential home, with 3200 square feet of materials, with 10-12 inches walls of concrete and hard materials and require addition hauling costs for the extra material. Some material contains asbestos, some of which will be mitigated prior to demo, and a large portion of asbestos containing materials requires a special haul to the Becker landfill. Commissioner Ovall commented when considering future property acquisitions to get more accurate demolition costs before committing. He didn’t like to spend that much money on this project, noting these costs were really surprising. Housing and Redevelopment Minutes Page 3 March 6, 2023 ----------------------------- Commissioner Wagner said she felt the cost of the two other bids were far more surprising and didn’t feel like there was much of an alternative. Chair Chuba agreed with Commissioner Wagner and based on the other two bid amounts doesn’t feel like there is an alternative. He expressed concerns with the water curb stop issue that will have to be addressed at some point. Mr. O’Neil explained the pipe is damaged and bent, the valve will not work, so the only way to shut off the water is at the main. The alternative is to disconnect the service line at the main and abandon it. ERMU will require the HRA to disconnect at the main. The HRA needs to decide doing that now when the ground is frozen, requiring the use of thaw boxes, taking 5-7 days, or do they wait 6-8 weeks when the ground naturally thaws. He explained the location of the pipe and the connection is at Main and King Avenue. Their goal is to not affect traffic on Main Street. Commissioner Ovall asked if we want to preserve the line if we decide to put in bathrooms or would it need to be replaced to not disrupt Main Street twice. Mr. O’Neil stated they explored that and felt due to the age of the line, if it was needed in the future, they would reconnect to a new line. Commissioner Cannon asked about the cost breakdown of removal of asbestos and other items. She also asked about road restrictions possibly delaying. Mr. O’Neil explained the road restrictions may not affect the demolitions, but weather delays will push out CenterPoint’s disconnect with a March 20 demo date. Moved by Commissioner Larson-Vito and seconded by Commissioner Wagner to accept the demolition contract for Veit Construction in the amount of $64,500.00 as outlined in the staff report with the idea that there may be some unknown costs that may arise requiring future action. Motion carried 5-0. 6.3 General Updates Mr. O’Neil presented the staff report. He noted the bylaws the HRA reviewed last month will be presented next month. He is still anticipating an offer on the Main and Gates property. He stated a website update will allow the HRA to discontinue the use of a website analytic service, which will save $1200 per year. Mr. O’Neil informed the HRA on the possibility of a party requesting support from the city/HRA on a proposed housing tax credits program in the form of the loan for a multi- family housing project. He recommended having the interested party formally propose something in writing for the HRA to consider at a future meeting. Commissioner Ovall asked for an update to the Maxwell Study including the new housing additions in the area to determine if multi-family is still needed in the Elk River area. Housing and Redevelopment Minutes Page 4 March 6, 2023 ----------------------------- The Housing and Redevelopment Authority recessed the meeting at 6:02 p.m. to go into work session. The meeting reconvened at 6:05 p.m. 7.1 724 Main Street Mr. O’Neil stated he received some follow up with First Bank and John Houlton regarding the easement agreement for the parking stall easement agreement between First Bank and the city, and noted Mr. Houlton is willing to talk with HRA representatives to partner with and discuss options as they determine the future of this space. Mr. O’Neil suggested an HRA board member join in those discussions with Mr. Houlton. Mr. O’Neil noted as the HRA looks at sites other than the Elk River Meats site for a public bathroom, he spoke with Craig Murphy, owner of the Cinema building owner, the Houlton building, and the Occasional Fling building, and he also said he would also be open to discussions with the HRA. Mr. Mollan then presented some bathroom options for the HRA to review. One was a prefab drop-on site bathroom which include a plethora of add-ons to completely customize for the use. Some perks: can be moved somewhere else if another development happens in the future; uses sewer/septic system. Could have family-style, large enough for clothing or diaper changing. The legality of the HRA possibly funding this has some limitations, noting there is capital cost up-front and needs to secure a future funding cost. The city attorney suggested the EDA may be a better fit to fund as it would be considered a city benefit, for city functions and increase tourism. Mr. O’Neil stated more conversations would be needed to determine which entity to take that on. He suggested a coordination with both the EDA and the City Council. Commissioner Cannon asked about the downtown area being on a Mississippi River Trail system. Staff will research this and bring that information to the next meeting. Commissioner Ovall noted the HRA mission is redevelopment and because the HRA cited the 724 building as a blighted property, he felt it important to staying the course of their mission in preparing this development and then selling it off to the EDA, or having Parks and Recreation take over to be more consistent with their missions. He doesn’t feel the HRA should oversee coordinating bathrooms. Mr. O’Neil stated having insufficient bathroom facilities is one angle for the HRA to look at and would have HRA powers with a possible fit as a downtown beautification line item and a possible Mississippi Connections Plan. They also discussed whether it is more in line of Parks and Recreation’s functionality. Commissioner Wagner commented that the GRE fund could be a partial funding source. She also understands the consideration of a future redevelopment could affect the placement of permanent bathrooms. She suggested looking at the entire parking area as an opportunity of a blank slate to offer a green space, restrooms, break up the blacktop, and could be gaining parking spots if reconfigured correctly. Housing and Redevelopment Minutes Page 5 March 6, 2023 ----------------------------- Chair Chuba mentioned solar panels included on parking canopies. It was the consensus of the HRA to continue proceeding forward having conversations, redesigning the layout, and schedule a joint meeting with the EDA and City Council. 8. Adjournment Chair Chuba adjourned the HRA meeting at 6:31 p.m. Minutes prepared by Jennifer Green. _____________________ Tina Allard, City Clerk _____________________ Denny Chuba, Chair Housing & Redevelopment Authority Closed Meeting of the Elk River Housing and Redevelopment Authority Held at the Elk River City Hall Friday, March 24, 2023 Members Present: Chair Denny Chuba, Commissioners Jayme Cannon, Jill Larson-Vito, and Jennifer Wagner Members Absent: Commissioner Nate Ovall Staff Present: Economic Development Director Brent O’Neil, Economic Development Specialist Joshua Mollan, and Sr. Administrative Assistant/Recording Secretary Jennifer Green 1. 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 11:01 a.m. by Chair Chuba. 2. Closed Meeting – MN Statute §13D.05, Subd. 3(c)(3) The HRA held a closed meeting per MN Statute §13D.05, Subd. 3(c)(3) (the “Act”). The purpose of the meeting was to develop or consider an offer or counteroffers for the purchase or sale of real or personal property. The properties discussed were: HRA Properties at Main St. and Gates Ave.: PID #75-401-0130, 75-401-0135, 75-401-0140, 75-401-0145, 75-401-0150, 75-401-0115. 3. Motion to Adjourn Moved by Commissioner Wagner and seconded by Commissioner Larson-Vito to adjourn the meeting of the Housing and Redevelopment Authority. Motion carried 4-0. The meeting adjourned at 11:20 a.m. Minutes prepared by Jennifer Green. ___________________ Denny Chuba, Chair ___________________ Tina Allard, City Clerk