09-05-2023 HRA MINMeeting of the Elk River
Housing and Redevelopment Authority
Held at the Elk River City Hall
Tuesday, September 5, 2023
Members Present: Chair Denny Chuba, Commissioners Jill Larson -Vito, Nate Ovall, and Jennifer
Wagner
Members Absent: Commissioner Jayme Cannon
Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist
Joshua Mollan, and Sr. Administrative Assistant 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 Chuba.
2. Pledge of Allegiance:
Chair Denny Chuba led the Pledge of Allegiance.
3. Consider Agenda
Mr. O'Neil commented that Commissioner Cannon resigned from the HRA commission effective
immediately.
Moved by Commissioner Ovall and seconded by Commissioner Larson -Vito to approve the
September 5, 2023, HRA meeting agenda as presented.
Motion carried 4-0.
4. Consent Agenda
Moved by Commissioner Larson -Vito and seconded by Commissioner Wagner to approve the
consent agenda as follows:
4.1 Meeting Minutes
■ August 7, 2023, Regular
■ August 7, 2023, Special
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 4-0.
S. Open Forum
No one appeared for Open Forum.
Housing and Redevelopment Minutes Page 2
September 5, 2023
6.1 HRA Housing Rehabilitation Loan Update
Mr. Mollan presented the staff report.
6.2 2024 Budget
Mr. O'Neil presented the staff report.
Commissioner Ovall stated he was not in favor of increasing the amount of the budget allocation line
item for Property Acquisitions from $200,000 in 2023 to $255,000 for 2024, especially considering the
cash balances. He questioned the need for an increase at all but would defer to the rest of the
commission.
Commissioner Larson -Vito commented that considering the cash balance, she supported the budget
as it's written but could be convinced either way.
Commissioner Wagner stated she supported what was proposed and felt there was an opportunity
with some properties as the HRA looks to redevelop other areas, stating it felt important to be
prepared to do so. She felt the HRA was good at holding the line the past few years since the
pandemic and while no one prefers a budget increase, it does have a future redevelopment purpose.
Chair Chuba stated he tends to agree with Commissioner Ovall but noted they have not had a budget
increase in the past few years. He supported the increase, noting you never know what opportunities
might come up.
Commissioner Ovall stated they do have a cash balance on the balance sheet and noted there are
other ways to fund and repay, or borrow money, for future property acquisition, noting there was no
right or wrong way.
Commissioner Wagner asked if Commissioner Ovall wanted to offer a different option to the budget.
Commissioner Ovall stated his alternate option would be to keep the same amount as the 2023
budget so there would be no levy increase, decrease the property acquisition fund to maintain that
balance and lower it by $108,000 to build a cash reserve. Even though the HRA knows what the fund
will be used for, they don't have a specific site or plan chosen with a variety of different initiatives but
no clear path.
The HRA discussed options with decreasing the Property Acquisition Fund and considering the funds
coming in from the sale of Main and Gates.
Commissioner Larson -Vito would support a decrease as Commissioner Ovall suggested.
Commissioner Wagner would also consider it but doesn't want to pigeon -hole the commission where
they can't make a move on a property that becomes available. She asked staff for figures to make the
budget remain the same as 2023 and does that affect staff s work for 2024.
Mr. O'Neil commented that it's prudent to keep a reasonable cash balance and explained the
I01EBEI I
r��ru��
Housing and Redevelopment Minutes
September 5, 2023
Page 3
differences between 2022 and 2023 to replenish funds after the meat market sale. He offered
suggestions on making future purchases without the funds in the budget by going to debt market but
noted there is also a cost to that; therefore, the goal is to keep a balancing act as staff remains
responsible with tax dollars and responsive to future opportunities.
Chair Chuba felt the amounts being discussed wouldn't raise his own taxes much and felt it important
for the HRA to be proactive going forward as it's easier to do that when the HRA has the cash
available. He was in support of keeping the budget as is.
The HRA further discussed adjustments to the budget.
Moved by Commissioner Wagner and seconded by Commissioner Larson -Vito to approve the
2024 HRA Budget as outlined in the staff report at $445,100 with a change to Line Item 4440
Miscellaneous to $200,000 and the levy amount of $440,100.
Motion carried 4-0.
6.3 General Updates
Mr. Mollan presented Google analytics numbers for the last 90 days on the website:
1100 users, 56.8% came from an organic search engine (Google or Bing), 32% direct, 8.7% organic
social links, 2.6% links from other sites.
Mr. O'Neil updated the commission on the sale of the Main and Gates property, noting the leasing
arrangement with the primary tenant was being worked on earlier this month. He indicated it's
unlikely to move forward with that tenant and therefore the buyer would not be moving forward to
close on the property. The buyer has until the end of September to close. The buyer has also been
approaching other tenants.
Mr. O'Neil informed the commission that the downtown hanging flower baskets were swapped out
by YardWorx recently due to hail in July. He noted the initial flower baskets were not as robust as
expected and wondered if the company fulfilled their contract. He asked the HRA how we set a better
expectation and provide YardWorx with feedback for future baskets.
Chair Chuba asked if this was the first or second year with the increased pot size.
Mr. O'Neil indicated it was the second year with the larger pot.
Commissioner Wagner stated this year's baskets were underwhelming, they weren't robust or
overflowing. Her expectations were colorful, large, cascading flowers and for the money they spent, t
they should never have been as small as they were. She wondered if providing photos or examples of
others city's baskets would be helpful. She would have to review the contract to see if they fulfilled it.
Commissioner Ovall stated he was impressed with the service on watering, dealing with the hail
damage and aphids, and felt it was worth talking to YardWorxs about expectations and ask how to
achieve better compliance for 2024.
r
I1EIII I
�►�ru��
Housing and Redevelopment ;Minutes
September 5, 2023
6.4 Placer.ai Presentation
Page 4
Mr. Mollan shared a presentation about the Placer.ai program with relevant reports and features to
show things like a leakage report, downtown visitation trends, 169 Redefine impacts and other items.
7. Adjourn Regular Meeting
Moved by Commissioner Wagner and seconded by Commissioner Larson -Vito to adjourn the
regular meeting of the Housing and Redevelopment Authority.
Motion carried 4-0.
Them r
Ling adjourned at 6:24 p.m.
Min es prepared by Jennifer Green.
'1
Nnny Chu r 'air
r
Tina Allard, City Clerk
PO11RII
INATURIE