03-14-2024 HRA MIN SPECIALSpecial Meeting of the Elk River
Housing and Redevelopment Authority
Held at the Elk River City Hall
Thursday, March 14, 2024
Members Present: Chair Denny Chuba, Commissioners Mel Beaudry, Lynn Caswell, Nate Ovall, and
Jennifer Wagner
Members Absent: None
Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist
Josh 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 4:00 p.m. by Chair Chuba.
2. Pledge of Allegiance
Chair Chuba led the Pledge of Allegiance.
3. Consider an amendment to the purchase agreement between the HRA and Ron
Touchette, dated June 21, 2023, for the sale of property at Main Street and Gates
Avenue
Mr. O'Neil presented the staff report. Ron Touchette with Rock Solid Companies was present to
answer questions.
Commissioner Wagner stated the agreement was already in place and felt the is only changing dates.
She supported the amendment to the purchase agreement.
Chair Chuba noted the location will be different than originally proposed.
Mr. Touchette indicated the building will be positioned on the corner of Main and Gates rather than
being set back due to the building being larger.
Moved by Commissioner Wagner and seconded by Commissioner Beaudry to approve the
Amendment 1 to the purchase agreement between the HRA and Ron Touchette with Rock
Solid Companies, setting the due diligence period to a firm date of May 31, 2024, and to
extend the closing date to June 28, 2024, as outlined in the staff report.
Motion carried 5-0.
Mr. O'Neil stated steps had been previously taken for this area to be a potential TIF district to allow
acquisition and demolition costs of the property to be recaptured through a future TIF district. He
stated he is considering a legislative request to ask for an extension of the 3-year lookback for
recapturing those funds, with the value being over $1 million dollars, due to the recent pandemic
happening during that time frame.
Housing and Redevelopment Minutes Page 2
March 14, 2024
Commissioner Ovall asked how that could be possible.
Mr. O'Neil explained on redevelopment TIF, the city can recover some acquisition costs prior to a
TIF district being created, and one step is creating an interfund loan pre -funding these expenses,
which the city did. To recover those previous expenses, the city needed to develop the TIF district
within three years and on this date, we are past that point. He noted it might be futile but there is an
interest in recovering those funds as a benefit to the city and HRA.
Chair Chuba asked how many years out we were.
Mr. O'Neil stated the city is roughly 4 years out and he is using the clock starting on the date of the
final home demolition. He felt it is a long shot on the legislative piece, and a big question to pose to
both the HRA and city council but given that the city is selling the property for $450,000 and the
costs for acquisition and demolition are around $1.3 million, the cost -benefit could be worth
pursuing. He also stated a conversation would be needed with the city council as they would have
approval authority on developing a TIF district.
Commissioner Ovall felt there are circumstances in our favor with the pandemic and highway
reconstruction, that those barriers could be to our benefit, and asked Mr. O'Neil to keep digging and
report back.
4. Adjourn Regular Meeting
Moved by Commissioner Beaudry and seconded by Commissioner Ovall to adjourn the
regular meeting of the Housing and Redevelopment Authority.
Motion carried 5-0.
The mz ung was adjourned at 4:15 p.m.
tes prepared by Jennifer Green.
% /'
Tina Allard, City Clerk
INATUREI