6.2. HRSR 03-04-2024
Request for Action
To Item Number
Housing and Redevelopment Authority 6.2
Agenda Section Meeting Date Prepared by
General Business March 4, 2024 Brent O’Neil, Economic Development Director
Item Description Reviewed by
General Updates Cal Portner, City Administrator
Reviewed by
Action Requested
Item presented for information and discussion purposes.
Background/Discussion
This is an opportunity to discuss relevant topics and other non-action items of the board. Among the topics are
the following:
Coachman II Senior Housing Development
Main and Gates Purchase Agreement
Sherburne County Housing Study
Annual Summary
Financial Impact
N/A
Mission/Policy/Goal
The goal of the HRA is to promote certain housing and redevelopment projects.
Attachments
Coachman II Concept
Scope – County Housing Study
2023 HRA/EDA Activity Summary
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
Elk River Senior Housing
Project Vicinity/Site Location Map
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Kick-off Meeting & Windshield Survey
Peer Community Conn parlsons
Review of Past Studies
DemographicAnalysls
Employment Trends
Housing Characteristics
For -Sale Housing Market Analysts
General Occupancy Rental Market Analysis
Senior Housing Market Analysis
Special Needs HousingAssessment
Housing Affordability
Remand Calculations (2023— 2035)
Recommendations & Action flan
Review of Draft & Formal Presentatlon
Mapping&GIs
Review Previous Comp Housing Analys Is
Demographic Analysis
Employment Trends
R es I d entl al Building Perm It Trends
For -Sale Kousing Market Analysis
General Occupancy Rental MarketAnalysis
Senior Housing Market Analys Is
Demand Calculatlons (2023 — 2030)
General Recommendations
One Meeting to Discuss Findings
• Pap, household, employment trendsiprojections to 2030 + Pap, household, employment trends/projections to 2035
Population age distribution to 2030
+ Household net worth
Household incomes by age of householder (2023 &2030j + Household tenure by household 5ixe
• Household tenure by age of householder + Householdtype
• Household incomeshytenure + Divers ltyand ethnlcity
• Income limits by H H size and rent restrictions + Mobilitytrends
• senior population, household, income, tenure trends + Major employers
• Resident employment, labor farce, unemploymenttrends + Interview major employers and local officials
• Industryemploymentandwages
• Commutingpattems
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2023 HRA and EDA Annual Summary March 1, 2024
2023 HRA and EDA Annual Summary
We are excited to present the 2023 HRA and EDA Annual Summary. This report reflects the steady progress
made by the Economic Development Authority, the Housing and Redevelopment Authority, the
Beautification and Public Art Committee, the Together Elk River Committee, and the Joint Finance
Committee.
Economic Development Authority
In 2023, the Elk River Economic Development Authority (EDA) was comprised of four members of the
City Council, three residents at large:
• Dan Tveite, President (At large)
• Mike Beyer, Vice President (Councilmember)
• Jeff Hartwig, Treasurer (At large)
• Charlie Blesener (At large)
• Cory Grupa (Councilmember)
• Jennifer Wagner (Councilmember)
• Matt Westgaard (Councilmember)
From left to right: Cory Grupa, Jeff Hartwig, Matt Westgaard, Dan Tveite, Mike Beyer, Jennifer Wagner, Charlie Blesener
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2023 HRA and EDA Annual Summary March 1, 2024
Housing and Redevelopment Authority
In 2023, the Elk River Housing and Redevelopment Authority (HRA) was comprised of the following
members:
• Dennis Chuba, Chair
• Jennifer Wagner, Vice Chair
• Nate Ovall, Secretary
• Jayme Cannon (through 9/2)
• Lynn Caswell (appointed 10/16, not pictured)
• Jill Larson-Vito
From left to right: Nate Ovall, Jayme Cannon, Dennis Chuba, Jill Larson-Vito, Jennifer Wagner
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2023 HRA and EDA Annual Summary March 1, 2024
Committees
Together Elk River Committee
The Together Elk River Committee continued to use the Together Elk River initiative to support
the local business community. The focus in 2023 was on 169 Redefine and its impacts to businesses
along the Highway 169 corridor. Orange Ball Creative generated dozens of social posts that were
shared on the Chamber, Economic Development, and City Facebook pages. In addition, the
committee secured a digital billboard that provided dozens of banners that supported local
businesses and city events.
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2023 HRA and EDA Annual Summary March 1, 2024
Beautification and Public Art Committee
The Beautification Committee merged with the Public Art Committee to form the Beautification
and Public Art Committee. The group continued to meet to recognize business owners who have
made an effort to clean, repair, improve, and enhance the overall aesthetics of their property to
maintain the beauty of their neighborhood. Each year, the Beautification and Public Art Committee
fields applications for the City Beautification Award. In December, Edge Bar + Boutique was
presented with the award for their recent construction of a coffee bar and boutique downtown.
In addition, the Beautification and Public Art Committee began work on soliciting additional public
art for the community and will begin the artist search in early 2024.
Joint Finance Committee
The Joint Finance Committee met on three occasions in 2023 utilizing the valuable expertise of its
members. The committee focused on supporting staff’s decisions regarding multiple loans issued by
the EDA.
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2023 HRA and EDA Annual Summary March 1, 2024
Department Activities
Marketing
The economic development staff had multiple opportunities in 2023 to market properties and
programs of the department. In addition to various web and print ads staff were able to attend many
trade shows and development summits. The Economic Development department in partnership
with Sherburne County Economic Development staffed a sponsored hole for the annual Elk River
Area Chamber of Commerce golf tournament at Links at Northfork in July. The MNCAR
Commercial Real Estate Expo was in October where multiple properties were promoted to
hundreds of real estate professionals. In November, Economic Development Director Brent O’Neil
was featured on a panel focused on an update of development in the north suburbs.
Staff partnered with Tri-CAP and ERMU to produce a home improvement resources one-page
mailer that was included with an ERMU monthly utility bill. Economic development staff fielded
nearly two dozen in-person and call-in inquiries, of which four new loans were closed.
DERBA
Staff continued their support and attendance at monthly meetings of the Downtown Elk River
Business Association (DERBA). Regular meetings with local business-owners have afforded the
economic development staff valuable collaboration and insight into the social and economic pulse of
Elk River’s downtown.
Sherburne County Connect
Staff in the Sherburne County economic development department started Sherburne County
Connect, which is an organized effort to improve communication, support, and encourage active
engagement across Sherburne County. The group is comprised of community and economic
development staff from the cities and townships of Sherburne County and meets monthly across the
county.
EV Event
The economic development staff were on the steering committee for Recharge MN’s Elk River
ElectriFUNcation & EV Test Drive Event in August at FT Center. The EDA was one of the
sponsors of the event.
Placer.ai
Staff have continued to implement the foot-traffic software: Placer.ai. Economic Development
Specialist, Josh Mollan presented findings to the EDA in May, the HRA in September, and for the
Elk River Area Chamber Connections group in November.
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2023 HRA and EDA Annual Summary March 1, 2024
Development Projects
This section highlights projects undertaken in Elk River in 2023. Some of these had direct involvement
from the HRA and EDA and through the strong local economy others were the result of passionate
business and property owners committed to the community.
Elk River Meats
After the 2022 acquisition of the former Elk River Meats property, the HRA demolished the code-
deficient building and repurposed the parcel into a temporary green space that was utilized by
downtown visitors. The HRA is actively discussing the future redevelopment of that and
surrounding parcels.
Hillside Heights
Construction began and nearly completed on a 52-unit apartment building on Twin Lakes Road.
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2023 HRA and EDA Annual Summary March 1, 2024
Building Products, Inc.
BPI expanded into the Twin Cities market utilizing space from Mill City Paper on Industrial
Boulevard.
Plants and Things
Plants and Things constructed a new indoor and outdoor showroom next to the existing Furniture
and Things along Highway 10.
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2023 HRA and EDA Annual Summary March 1, 2024
Quick Lane at Cornerstone Auto
Cornerstone Auto constructed a new 14-bay express service facility off Highway 10.
JonnyPops
After their move to Elk River in 2022, JonnyPops held their ribbon cutting in October.
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2023 HRA and EDA Annual Summary March 1, 2024
Avery’s Adventures
In September, this family-owned indoor playground opened its doors to give kids a unique place to
gather and play.
Beaudry Oil
Beaudry Oil started construction on a 25,000 sq ft lubricants facility on County Road 1.
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2023 HRA and EDA Annual Summary March 1, 2024
McDonald’s
McDonald’s demolished and rebuilt their store on Highway 169 that features a modern and digital-
forward experience.
The Delta
Construction has been completed on one of two 90-unit apartment buildings on the old Saxon
Motors site along the Mississippi River.
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2023 HRA and EDA Annual Summary March 1, 2024
Properties
In January, the EDA continued its contract with Ryan Hardin of Hardin Companies as its broker for its
available land. Ryan has been actively marketing the properties and has been involved in many discussions
and decisions.
Natures Edge Business Center
The Northwest site at Natures Edge Business Center I has had strong interest with an aim at closing
in 2024. The available 21-acre land at Natures Edge Business Center III continued to be marketed
for business park uses.
Fox Haven
The 3-acre property continued to be marketed and staff have continued to research the best uses of
the property.
Main and Gates
The 1.7-acre property had a purchase agreement signed in June but was unable to close on schedule.
There remains interest in the site as staff continue to market it.
Status of Loans
EDA Microloans
The EDA had four active loans in 2023 with one set to be paid off in early 2024.
EDA Active Loan Portfolio
Number of Loans 4
Total Original Principal $ 611,200.00
Outstanding Balance $ 338,403.62
HRA Rehab Loan Program
The HRA closed four rehab loans through CEE for a total of $122,677.73. Moreover, in 2022 and
2023 CEE closed six additional loans outside of our program to residents in Elk River for a total of
$80,990.
HRA Active Loan Portfolio
Number of Loans 9
Total Original Principal $ 221,953.95
Outstanding Balance $ 162,108.05
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2023 HRA and EDA Annual Summary March 1, 2024
Building Permits
Commercial
In 2023, Elk River saw a valuation of just over $50 million in commercial building permits,
compared to $60 million in 2022, $51.5 million in 2021, and $21.5 million in 2020.
Residential
On the residential side, Elk River saw a valuation of nearly $37 million in residential building
permits.
Staff
Economic Development Director Brent O’Neil and Economic Development Specialist Josh Mollan continue
to support the department by fielding phone call and walk-in inquiries, attending ribbon cuttings, leading
department committees, marketing resources to existing and prospective business owners and residents,
visiting local businesses, and attending economic development events and trainings.
Brent O’Neil
Economic Development Director
BONeil@ElkRiverMN.gov
763.635.1042
Josh Mollan
Economic Development Specialist
JMollan@ElkRiverMN.gov
763.635.1041