HRA Packet 06-03-2024
Housing and Redevelopment
Authority
Regular Meeting
&
Work Session
Agenda
Monday, June 3, 2024
5:30 PM
Elk River City Hall
▪ Regular meeting in Council Chambers
▪ Work Session meeting in Upper Town Conference Room immediately following regular meeting
1. CALL MEETING TO ORDER
2. PLEDGE OF ALLEGIANCE
3. CONSIDER AGENDA
4. CONSENT AGENDA
Considered to be routine and noncontroversial and will be approved by one motion. There will be no separate discussion of
these items unless there is a request to remove the item from the consent agenda to the regular agenda.
4.1 HRA Minutes - May 6, 2024
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Reports
5. OPEN FORUM
An opportunity to provide comments and feedback regarding items not on the agenda. Information provided in Open Forum
will not be discussed at this meeting; rather, the information will be referred to staff and/or scheduled for discussion at a
future meeting.
6. GENERAL BUSINESS
Items in which the information is presented by city staff or consultants, then deliberation and action occur. General Business
items are not opportunities to receive or provide public input. However, the presiding officer may, at its sole discretion,
solicit public feedback.
6.1 Housing Rehabilitation Loan Program Update
6.2 Duffy Development Letter of Support for Coachman II State Funding Application
6.3 Placer.ai Presentation
6.4 Extension - Sale of Main and Gates Properties
6.5 General Updates
7. MOTION TO ADJOURN REGULAR MEETING
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
8. WORK SESSION – UPPER TOWN CONFERENCE ROOM
Work Sessions are less formal meetings to encourage dialog. Official action or votes are not typically taken. At the
conclusion of a discussion, a simple consensus provides staff direction for execution of the item. This portion of the agenda
is audio recorded but not video recorded or broadcast. Work Sessions are open to the public; however, visitors who wish
to provide input must be invited by the presiding officer, assume a seat at the discussion table and provide their full name
and address for the official record.
8.1 Substandard Property and Redevelopment at 19116 Troy Street
8.2 Housing Rehab Loan Program Overview
9. MOTION TO ADJOURN
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Meeting of the Housing and
Redevelopment Authority
Held at the Elk River City Hall
Monday, May 6, 2024
Members Present: Councilmember Jennifer Wagner, Commissioner Dennis Chuba, Commissioner
Nate Ovall, Commissioner Lynn Caswell, Commissioner Mel Beaudry
Members Absent:
Staff Present: Economic Development Director Brent O'Neil, Economic Development
Specialist Joshua Mollan, and Recording Secretary Jennifer Green
1.CALL MEETING TO ORDER
Pursuant to due call and notice thereof, the meeting was called to order at 5:31 p.m.
2.PLEDGE OF ALLEGIANCE
Chair Chuba led the Pledge of Allegiance.
3.CONSIDER AGENDA
Moved by Commissioner Nate Ovall and seconded by Commissioner Lynn Caswell to
approve the May 6, 2024, HRA agenda. Motion Carried 4-0.
4.CONSENT AGENDA
Moved by Commissioner Nate Ovall and seconded by Commissioner Mel Beaudry to
approve the Consent Agenda. Motion Carried 4-0.
4.1 Minutes from April 1, 2024
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Reports
5.OPEN FORUM
No one appeared for Open Forum.
6.GENERAL BUSINESSDRAFT
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Housing and Redevelopment Authority Minutes
May 6, 2024
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Page 2 of 4
Commissioner Wagner arrived at 5:35 p.m.
6.1 Housing Rehabilitation Loan Program Update
Mr. Mollan presented the staff report. He noted an ad was placed in the Spring Home Improvement
section of the Star News promoting the loan program funds.
Commissioner Ovall asked if the loan program interest rate should be raised to be in line with the
current market, noting that prime is currently at 8.5%.
Mr. O'Neil stated the HRA can review the loan program policy at any time to discuss changing the
interest rate.
Chair Chuba stated he doesn't feel it's necessary to raise the interest rate, and felt it was a benefit to
the residents to have a lower rate.
Commissioner Caswell asked about the loan criteria for the loan program.
Mr. O'Neil explained the criteria. He asked that the upcoming utility mailer highlight the low interest
rate of 4%.
6.2 Placer.ai Renewal
Mr. Mollan presented the staff report.
Commissioner Ovall asked if the data from Placer.ai is available to outside users or strictly staff.
Mr. Mollan indicated only staff are allowed the use of the software and sometimes staff shares
information with outside entities.
Mr. O'Neil stated the license agreement restricts the usage to staff only.
Moved by Commissioner Lynn Caswell and seconded by Commissioner Nate Ovall to
approve a one-year renewal of the Placer.ai subscription. Motion Carried 5-0.
6.3 State Affordable Housing Aid
Mr. O'Neil presented the staff report. He indicated future work sessions would be held for the HRA to
develop programs to provide funds to support affordable housing initiatives.
6.4 Furniture Placement at 724 Main Street
Mr. O'Neil presented the staff report and stated the agreement is being finalized. He ask the HRA to
approve the placement of the outdoor furniture, stating it was important to recognize the efforts of our
community partners and the furniture will be a nice amenity to this area.
Moved by Commissioner Jennifer Wagner and seconded by Commissioner Mel Beaudry to
approve placement of outdoor furniture at 724 Main Street by Furniture and Things (FT),
Plants and Things (PT), and the Downtown Business Association (DERBA) for public use DRAFTPage 4 of 65
Housing and Redevelopment Authority Minutes
May 6, 2024
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Page 3 of 4
during the 2024 summer season, conditional on a written memorandum or agreement
between the HRA, PT, FT and DERBA in a form approved by the city attorney. Motion
Carried 5-0.
6.5 General Updates
Mr. Mollan discussed the placement of temporary signage to support the local businesses impacted by
the Main Street closure due to the 169 construction. He stated the Together Elk River Committee is
placing a 4x8 double-sided changeable copy sign temporarily at the HRA Main and Gates property from
now until at least the end of June and will work with Ron Touchette to remove the sign once the
property closes. He stated the potential is to keep the sign throughout the summer encouraging
travelers to visit the businesses impacted during road construction.
Mr. Mollan provided an update on the downtown flower baskets, noting the baskets will be placed the
week of May 20. He discussed the 3-year contract ending, and wanted to note the current company,
YardWorx, offered to do a 3-year extension at the same price as the current contract. Mr. Mollan
asked if the HRA had feedback on either placing an RFP for bids or extend the current contract for an
additional 3 years.
The HRA discussed the RFP and timeline, noting the need for a decision was by mid-July whether to
renew the current contract or go out for bids. Commissioner Wagner felt that decision would be based
upon their performance this year and felt it was very nice of them to extend the contract, but in her
opinion, she wants to ensure they have good product this year.
Commissioner Caswell felt that at the price of plants, he was surprised they would extend the contract
for another 3 years.
Mr. O’Neil noted YardWorx provided this offer today so he has not had time to review the public bid
requirements and was not sure if they can even accept the offer.
Chair Chuba felt they had an incentive to provide good product this year.
Commissioner Ovall inclined go out for bids to keep things honest and competitive. He noted he was
Impressed with Yardworx's ability to identify and fix issues, but felt an RFP was a good way to go.
Chair Chuba asked how many bids were received last time. Mr. O'Neil stated he would check on that.
Mr. Mollan provided an update on the Duffy Coachman II project, and is still working wtih them on a
general letter of support of the project, which was not a commitment to funds. He stated the letter
should be ready for next month ahead of their mid-July deadline for the HRA to review. It was the
consensus of the HRA to support the letter and review at the June meeting.
Mr. O’Neil explained the downtown small area plan process, noting the RFP is posted and the Planning
department will be leading that project. He provided detail about the project area and discussed the
two capital components: street reconstruction of Jackson and Main, and resurfacing and some
replacement of parking lots. Timeline was as soon as next construction season with the planning
piece/engineering piece done this year. Funding is coming from the city’s budget. Mr. O'Neil stated the
various aspects of other items will be discussed as part as the capital improvement process. He stated
there would be some amenities that would require alternative funding sources such as grants, and DRAFTPage 5 of 65
Housing and Redevelopment Authority Minutes
May 6, 2024
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would involve the HRA or EDA.
Commissioner Wagner asked if the HRA would be open to recognizing the owner Jeff Krueger of
Daddy O’s Restaurant. Jeff is retiring and closing the doors of the restaurant May 24. The HRA will add
recognition of this longstanding business in the city to the June agenda.
7. MOTION TO ADJOURN REGULAR MEETING
Moved by Councilmember Wagner and seconded by Commissioner Ovall to adjourn the
meeting.
The meeting adjourned at 6:09 p.m.
DRAFTPage 6 of 65
05-30-2024 10:01 AM ELK RIVER CITY COUNCIL REPORT PAGE: 1
VENDOR SORT KEY DESCRIPTION FUND DEPARTMENT AMOUNT_
ANTHEM VALUATION LLC APPRAISAL SVCS HRA Housing & Redevelopmen 800.00_
TOTAL:800.00
CENTER FOR ENERGY & ENVIRONMENT LOANS AND ADMIN FEES HRA NON-DEPARTMENTAL 19,290.00
LOANS AND ADMIN FEES HRA NON-DEPARTMENTAL 35,000.00
LOANS AND ADMIN FEES HRA Housing & Redevelopmen 1,500.00_
TOTAL:55,790.00
CITY OF ELK RIVER REIMB SALARIES - MAY 24 HRA Housing & Redevelopmen 6,302.03
REIMB SALARIES - MAY 24 HRA Housing & Redevelopmen 472.65
REIMB SALARIES - MAY 24 HRA Housing & Redevelopmen 390.73
REIMB SALARIES - MAY 24 HRA Housing & Redevelopmen 91.38
REIMB SALARIES - MAY 24 HRA Housing & Redevelopmen 1,594.80_
TOTAL:8,851.59
YARDWORX OUTDOOR SERVICES LLC BASKET UPKEEP - JUN HRA Housing & Redevelopmen 3,334.60_
TOTAL:3,334.60
=============== FUND TOTALS ================
910 HRA 68,776.19
--------------------------------------------
GRAND TOTAL: 68,776.19
--------------------------------------------
TOTAL PAGES: 1
4.2.
Page 7 of 65
5-30-2024 08:38 AM CITY OF ELK RIVER PAGE: 1
BALANCE SHEET
AS OF: MAY 31ST, 2024
910-HRA
ACCOUNT # ACCOUNT DESCRIPTION BALANCE
_____________________________________________________________________________________________
ASSETS
======
910-1010 Cash - HRA 769,360.19
910-1190 Loans Receivable 157,046.27
910-1193 Forgivable Loan 75,000.00
910-1194 Allow for Forgivable Loan ( 75,000.00)
910-1195 Note Receivable 400,000.00
910-1310 Due From Other Funds 161,823.29
910-1610 Land Held for Redevelopment 382,000.00
1,870,229.75
TOTAL ASSETS 1,870,229.75
==============
LIABILITIES
=========== ______________ ______________
EQUITY
======
910-2400 Fund Balance 1,924,693.80
TOTAL BEGINNING EQUITY 1,924,693.80
TOTAL REVENUE 3,150.74
TOTAL EXPENSES 57,614.79
TOTAL REVENUE OVER/(UNDER) EXPENSES ( 54,464.05)
TOTAL EQUITY & REV. OVER/(UNDER) EXP. 1,870,229.75
TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 1,870,229.75
==============
4.3.
Page 8 of 65
5-30-2024 08:39 AM CITY OF ELK RIVER PAGE: 1
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: MAY 31ST, 2024
910-HRA
FINANCIAL SUMMARY 41.67% OF YEAR COMP.
CURRENT CURRENT YEAR TO DATE % OF BUDGET
BUDGET PERIOD ACTUAL BUDGET BALANCE
___________________________________________________________________________________________________________________
REVENUE SUMMARY
HRA 445,100.00 489.70 3,150.74 0.71 441,949.26
TOTAL REVENUES 445,100.00 489.70 3,150.74 0.71 441,949.26
============= ============= ============= ======= =============
EXPENDITURE SUMMARY
Economic Development
Housing & Redevelopment 445,100.00 22,277.32 57,614.79 12.94 387,485.21
TOTAL Economic Development 445,100.00 22,277.32 57,614.79 12.94 387,485.21
TOTAL EXPENDITURES 445,100.00 22,277.32 57,614.79 12.94 387,485.21
============= ============= ============= ======= =============
REVENUES OVER/(UNDER) EXPENDITURES 0.00 ( 21,787.62)( 54,464.05) 54,464.05
4.4.
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5-30-2024 08:39 AM CITY OF ELK RIVER PAGE: 2
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: MAY 31ST, 2024
910-HRA
41.67% OF YEAR COMP.
CURRENT CURRENT YEAR TO DATE % OF BUDGET
REVENUES BUDGET PERIOD ACTUAL BUDGET BALANCE
___________________________________________________________________________________________________________________
HRA
===
Taxes
910-3-0000-3111 Property Taxes 440,100.00 0.00 0.00 0.00 440,100.00
TOTAL Taxes 440,100.00 0.00 0.00 0.00 440,100.00
Intergovernmental Rev _____________ _____________ _____________ _______ _____________
Charges for Services _____________ _____________ _____________ _______ _____________
Other Revenue
910-3-0000-3621 Interest Income 5,000.00 489.70 3,150.74 63.01 1,849.26
TOTAL Other Revenue 5,000.00 489.70 3,150.74 63.01 1,849.26
Other Financing Sources _____________ _____________ _____________ _______ _____________
Transfers In _____________ _____________ _____________ _______ _____________
_____________________________________________________________________________
TOTAL HRA 445,100.00 489.70 3,150.74 0.71 441,949.26
___________________________________________________________________________________________________________________
TOTAL REVENUE 445,100.00 489.70 3,150.74 0.71 441,949.26
============= ============= ============= ======= =============
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5-30-2024 08:39 AM CITY OF ELK RIVER PAGE: 3
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: MAY 31ST, 2024
910-HRA
Economic Development 41.67% OF YEAR COMP.
Housing & Redevelopment
CURRENT CURRENT YEAR TO DATE % OF BUDGET
DEPARTMENTAL EXPENDITURES BUDGET PERIOD ACTUAL BUDGET BALANCE
___________________________________________________________________________________________________________________
Personal Services
910-4-6100-4101 Regular Pay 82,600.00 15,755.07 25,208.11 30.52 57,391.89
910-4-6100-4104 PERA 6,200.00 1,181.63 1,890.60 30.49 4,309.40
910-4-6100-4105 FICA 5,100.00 976.82 1,573.61 30.86 3,526.39
910-4-6100-4107 Medicare 1,200.00 228.45 368.02 30.67 831.98
910-4-6100-4108 Insurance 16,200.00 3,189.60 6,379.20 39.38 9,820.80
910-4-6100-4109 Workers Comp 350.00 143.75 241.75 69.07 108.25
TOTAL Personal Services 111,650.00 21,475.32 35,661.29 31.94 75,988.71
Supplies
910-4-6100-4219 Operating Supplies 500.00 0.00 0.00 0.00 500.00
TOTAL Supplies 500.00 0.00 0.00 0.00 500.00
Services & Charges
910-4-6100-4304 Legal Fees 8,000.00 403.00 403.00 5.04 7,597.00
910-4-6100-4319 Professional Services 32,000.00 0.00 0.00 0.00 32,000.00
910-4-6100-4322 Postage 50.00 0.00 0.00 0.00 50.00
910-4-6100-4331 Travel, Conferences & Schools 200.00 0.00 0.00 0.00 200.00
910-4-6100-4349 Advertising/Marketing 9,200.00 345.00 6,976.50 75.83 2,223.50
910-4-6100-4359 Publishing 350.00 0.00 77.40 22.11 272.60
910-4-6100-4401 Bldg Repair/Maint Services 4,000.00 0.00 0.00 0.00 4,000.00
910-4-6100-4404 Software Services 9,100.00 0.00 0.00 0.00 9,100.00
910-4-6100-4409 Contractual Services 27,750.00 54.00 14,496.60 52.24 13,253.40
910-4-6100-4433 Dues & Subscriptions 800.00 0.00 0.00 0.00 800.00
910-4-6100-4440 Miscellaneous 200,000.00 0.00 0.00 0.00 200,000.00
TOTAL Services & Charges 291,450.00 802.00 21,953.50 7.53 269,496.50
Capital Outlay _____________ _____________ _____________ _______ _____________
Debt Service _____________ _____________ _____________ _______ _____________
Transfers Out
910-4-6100-4721 Transfer-General Fund 37,500.00 0.00 0.00 0.00 37,500.00
910-4-6100-4735 Transfer-EDA 4,000.00 0.00 0.00 0.00 4,000.00
TOTAL Transfers Out 41,500.00 0.00 0.00 0.00 41,500.00
___________________________________________________________________________________________________________________
TOTAL Housing & Redevelopment 445,100.00 22,277.32 57,614.79 12.94 387,485.21
___________________________________________________________________________________________________________________
TOTAL Economic Development 445,100.00 22,277.32 57,614.79 12.94 387,485.21
___________________________________________________________________________________________________________________
TOTAL EXPENDITURES 445,100.00 22,277.32 57,614.79 12.94 387,485.21
============= ============= ============= ======= =============
REVENUES OVER/(UNDER) EXPENDITURES 0.00 ( 21,787.62)( 54,464.05) 54,464.05
Page 11 of 65
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Housing and Redevelopment Authority
Item Number
6.1
Meeting Date
June 3, 2024
Prepared By
Joshua Mollan, Economic Development Specialist
Item Description
Housing Rehabilitation Loan Program Update
Reviewed by:
Brent O'Neil
Cal Portner
Action Requested
Receive updates on the Housing Rehabilitation Loan Program.
Background/Discussion
CEE reports that all accounts are current and the HRA's portfolio is performing as expected with no
delinquencies or late payments.
On April 22, CEE closed on two new loans; one for $19,290 for a septic project and another for $35,000 for
a solar project. $95,710 remains available for new loan disbursements in 2024.
The utility bill insert in partnership with Elk River Municipal Utilities is being finalized and is set to be included
with July's utility bill mailing.
Financial Impact
N/A
Mission/Policy/Goal
Improve existing housing stock by offering incentives or programs to repair and maintain residential
properties.
Attachments
1. CEE Loan Servicing Report March 2024
2. Monthly Loan Activity Summary
3. ERMU Mailer
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CEE SERVICING
REPORT TYPE:INVOICE REPORT
DATA SET DATE:4/1/2024
REPORTING PERIOD:Mar-24
INVESTOR:CITY OF ELK RIVER
212 3rd Avenue North, Suite 560
Minneapolis, MN 55401
REPORTING MONTH: MARCH 2024 Ph.: 612.455.7805
POOL Total Count of
Loans
New Loans
Added
Loans Transferred for
Serviving
Count of Active
Delinquent
Accounts
Total Amount
Collected During
the Month
Principal
Collected During
the Month
Interest
Collected During
the Month
New Loan On-
boarding Fee @
$20/Account
Loan Transfer
On-Boarding Fee
@ $20/Account
Monthly
Servicing @
$6/Account
Delinquent
Loan
Management @
$3/Account
Total Monthly
Fees
Netted Amount
to Transfer to
Investor
Row Labels Count of LOAN #Sum of NEW LN INDSum of TRNX IND Sum of DELINQ INDSum of PMNT AMOUNTSum of PRN COLLECTEDSum of INT COLLECTED
HRA REHAB 9 0 0 0 $2,071.22 $1,581.52 $489.70 $0.00 $0.00 $54.00 $0.00 $54.00 $2,017.22
Grand Total 9 0 0 0 $2,071.22 $1,581.52 $489.70 $0.00 $0.00 $54.00 $0.00 $54.00 $2,017.22
ACCOUNT DETAIL FOR INVOICING
PORTFOLIO POOL LOAN #PROPERTY CONTRACT DATE LOAN AMOUNT PMNT DATE PMNT AMOUNT PRN COLLECTED INT COLLECTED TRNX IND NEW LN IND DELINQ IND
ELK RIVER RESIDENTIAL HRA REHAB 19-015215 606 JEFFERSON LN NW 8/3/2015 $20,650.00 3/11/2024 $192.33 $186.22 $6.11 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 19-015204 1420 5TH ST NW 1/25/2017 $22,069.00 3/20/2024 $208.04 $194.21 $13.83 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 19-015209 609 GATES AVE NW 9/22/2017 $19,665.00 3/10/2024 $187.63 $171.09 $16.54 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 19-015217 1811 MAIN ST 5/4/2018 $21,640.00 3/10/2024 $162.79 $112.30 $50.49 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 19-016564 403 3RD ST NW 7/15/2019 $15,252.22 3/15/2024 $154.43 $125.78 $28.65 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 23-029012 18990 TWIN LAKES RD NW 4/21/2023 $34,749.06 3/18/2024 $260.00 $154.21 $105.79 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 23-028654 13222 179 1/2 AVE NW 6/16/2023 $33,925.67 3/20/2024 $300.00 $196.76 $103.24 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 23-029085 17931 GARY ST NW 6/20/2023 $30,223.00 3/20/2024 $306.00 $215.21 $90.79 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 23-029618 13366 181ST LN NW 10/2/2023 $23,780.00 3/29/2024 $300.00 $225.74 $74.26 0 0 0
$2,071.22 $1,581.52 $489.70
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CEE SERVICING
REPORT TYPE:AGING DELINQUENCY REPORT
DATA SET DATE:4/1/2024
REPORTING PERIOD:Mar-24
INVESTOR:CITY OF ELK RIVER
AGING DELINQUENCY DETAIL PER ACCOUNT AS OF 3/31/2024
LOAN #BORROWER ADDRESS CONTRACT UNPD PRN BAL DPD TOTAL DUE 1 TO 15 DPD 15+ DPD 30+ DPD 60+ DPD 90+ DPD UNPD LATE FEES STATUS LAST PMNT DATE LAST PMNT AMNT
19-015215 606 JEFFERSON LN NW 8/3/2015 $3,010.52 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 3/11/2024 $192.33
19-015204 1420 5TH ST NW 1/25/2017 $6,765.50 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 3/20/2024 $208.04
19-015209 609 GATES AVE NW 9/22/2017 $7,400.44 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 3/10/2024 $187.63
19-015217 1811 MAIN ST 5/4/2018 $14,838.09 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 3/10/2024 $162.79
19-016564 403 3RD ST NW 7/15/2019 $8,889.42 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 3/15/2024 $154.43
23-029012 18990 TWIN LAKES RD NW 4/21/2023 $33,133.51 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 3/18/2024 $260.00
23-028654 13222 179 1/2 AVE NW 6/16/2023 $32,286.40 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 3/20/2024 $300.00
23-029085 17931 GARY ST NW 6/20/2023 $28,351.82 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 3/20/2024 $306.00
23-029618 13366 181ST LN NW 10/2/2023 $22,362.01 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 3/29/2024 $300.00
$157,037.71 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2,071.22$
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CEE Monthly Loan Activity Summary
6/3/24 6.1 at2
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ERMUMN.COM | 763.441.2020 | 13069 ORONO PARKWAY | PO BOX 430 | ELK RIVER, MN 55330-0430
Homeowners, renters, and property managers in Elk River may have the opportunity to update their home with health and safety
repairs and general improvements. The partnership between ERMU, Tri-CAP, and the City of Elk River is focused on improving
the safety, livability, energy efficiency, and accessibility of a home. Please note: All options listed below are on a first-come,
first-served basis while funds are available.
Home Improvement Programs Available
• Tri-CAP sponsored Energy Assistance Program offers assistance with utility bill payment and/or fuel delivery for income
eligible homeowners
• Tri-CAP sponsored Weatherization Assistance Program is federally funded for income eligible homeowners
• City of Elk River Housing Rehabilitation Loan Program has no maximum income limit
Home Improvement Possibilities
Partnering to Make Your Home
an Energy Efficient, Healthy,
and Safe Environment
For a complete list of possible projects — from plumbing and electrical, to HVAC and energy efficiency, to cosmetic upgrades
and everything in between — please review the details on the back of this form.
HOME IMPROVEMENT RESOURCES
Open the door to
home enhancement
opportunities
Page 26 of 65
ERMUMN.COM | 763.441.2020 | 13069 ORONO PARKWAY | PO BOX 430 | ELK RIVER, MN 55330-0430
Tri-CAP | 320.251.1612 | 888.765.5597 | Email: general@tricap.org | www.tricap.org
Tri-CAP Energy Assistance Program
The Energy Assistance Program is a federally funded program. Grants are based
on household size, income, fuel type, and energy usage.
HOME IMPROVEMENT SERVICES
• Help for utility bill payment and/or fuel delivery
• Emergency heating system repair or replacement
ELIGIBILITY
• Households at or below 50% of the state median income
(see guidelines)
• Tri-CAP provides energy assistance to Sherburne county residents
Tri-CAP Weatherization Assistance Program
Provides services at no cost to the customer to reduce energy consumption
and eliminate health and safety concerns for eligible homeowners and renters.
ELIGIBILITY
• Customers are eligible if they have not received weatherization in the last 15 years and if the total household income
before taxes is equal to or less than 200% of the Federal Poverty guidelines. No credit check required.
• Tri-CAP provides weatherization services to Sherburne county residents.
HOME IMPROVEMENT SERVICES
• Comprehensive energy audit
• Insulation (attic and walls)
• Weather stripping
• Caulking
• Furnace clean and tune up
• Health and safety items such as smoke alarms and
carbon monoxide detectors
• Emergency refrigerator replacement
City of Elk River Housing Rehabilitation Loan Program
The Elk River Housing and Redevelopment Authority is making financing available for homeowners to make property
improvements. Loan amounts are from $5,000-$35,000, with no maximum income limit, and terms up to 15 years with
a 4% fixed interest rate. Closing costs may apply. Please contact the City of Elk River to learn more about the loan terms.
ELIGIBILITY
• 1-4 unit owner-occupied residential properties located in the City of Elk River with sewer and water service
• Townhomes, condominiums, and properties held in trust are eligible
TYPES OF IMPROVEMENTS
• Roofing
• Siding
• Doors/windows
• Plumbing
• Electrical
• HVAC
• Insulation
• Solar
• Garage
• Driveways
• Sidewalks/steps
• Painting
• Flooring
• Additions
• Landscaping
Elk River Housing and Redevelopment Authority | 763.635.1000 | ElkRiverMN.gov
HOME IMPROVEMENT RESOURCES
Household Size 1 Month Gross Income
1 $2,722
2 $3,559
3 $4,397
4 $5,235
5 $6,072
6 $6,910
7 $7,067
8 $7,224
9 $7,381
10 $7,538
2024 Maximum EAP Income Guidelines
Based on 50% State Median Income
Page 27 of 65
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Housing and Redevelopment Authority
Item Number
6.2
Meeting Date
June 3, 2024
Prepared By
Joshua Mollan, Economic Development Specialist
Item Description
Duffy Development Letter of Support for Coachman
II State Funding Application
Reviewed by:
Brent O'Neil
Cal Portner
Action Requested
Approve, by motion, a joint letter of support for Duffy Development Company for a state funding application
for the proposed Coachman II housing project.
Background/Discussion
Duffy Development Company (Duffy) proposes an affordable senior housing project called Coachman Ridge II
near the Northstar Station. The proposed project is for roughly 50 units for residents with incomes at 30 to
50% of the area median income. The total project is expected to cost $15 to $18 million.
To support the affordability component, Duffy will apply again for funding through the Minnesota Housing
Agency. Like last year, Duffy has requested a letter of support from the city to ensure the strongest
application is submitted. The application is due in mid-July.
The HRA and City Council have previously shown support for this project. In June 2023, a similar letter of
support was approved and signed by the City Council upon recommendation of the HRA. This year, staff
suggests a joint letter of support from the HRA and City Council. This item will go to the City Council for
consideration at its June 17 meeting.
Financial Impact
N/A
Mission/Policy/Goal
Support the growth and development of the community. Opportunity to live, work, and play.
Attachments
1. Draft Council and HRA Letter of Support
Page 28 of 65
13065 Orono Parkway
Elk River, MN 55330
763.635.1000 ElkRiverMN.gov
June 6, 2024
Mr. John Duffy ☒Sent via email to jduffy@duffydevelopment.com
Mr. Jeff Von Feldt ☒Sent via email to jvonfeldt@duffydevelopment.com
Duffy Development Company, Inc.
12708 Wayzata Blvd., Suite 400
Minnetonka, MN 55305
RE: Proposed Elk River Affordable Senior Apartments (Coachman Ridge II)
Dear Mr. Duffy and Mr. Von Feldt,
The Elk River City Council and Housing and Redevelopment Authority have previously reviewed the proposed
Coachman Ridge II affordable senior housing development proposal which proposes a 45-55-unit, new multi-
family construction project in the City of Elk River. We understand that you will be submitting a funding
application through the Minnesota Housing Finance Agency (MHFA) Consolidated RFP process in July of
2024, and that the project is proposed to target individuals 55+ with incomes at 30% to 50% of area median
income.
The need for this type of housing Elk River is evidenced by the Comprehensive Housing Market Study
Updates completed for the city by Maxfield Research on February 15, 2018, and Preliminary Analysis for
Elk River Apartments completed for Duffy Development by Market Analyst Professionals on May 20, 2023.
The proposed parcel for the proposed project is adjacent to another multi-family property and the
Northstar commuter rail station. The city’s comprehensive plan guides the property for multi-family use and
standard entitlement processes would apply.
The City Council and HRA moved to support your application at their June 6, 2024, meetings. On behalf of
the Council and HRA, please accept this letter of support for your application to the MHFA.
Sincerely,
John J. Dietz Dennis Chuba
Mayor HRA Chair
Enclosures: XXX
cc: name here
Page 29 of 65
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Housing and Redevelopment Authority
Item Number
6.3
Meeting Date
June 3, 2024
Prepared By
Joshua Mollan, Economic Development Specialist
Item Description
Placer.ai Presentation
Reviewed by:
Brent O'Neil
Cal Portner
Action Requested
Item presented for information and discussion purposes.
Background/Discussion
Staff will use this time to share a presentation of relevant reports and features from Placer.ai which include:
leakage report, downtown visitation trends, former ERM green space visitation, and 169 Redefine impacts,
among others.
Financial Impact
N/A
Mission/Policy/Goal
Promote and support certain housing and redevelopment projects.
Attachments
1. HRA Placer Presentation 06-2024 Clean
Page 30 of 65
Placer.ai Update
Joshua Mollan
June 2024
Page 31 of 65
Leakage Report
Page 32 of 65
Leakage Report
Identify unmet needs for residents
Identity entities for which residents leave the most
Understand where potential tax dollars are lost
Page 33 of 65
Leakage Report
Page 34 of 65
Leakage Report
Page 35 of 65
Leakage Report
Page 36 of 65
Leakage Report
Page 37 of 65
Leakage Report
Store 2021 2022 2023
Target –Otsego 304,000 291,000 309,000
Costco –Coon Rapids 68,000 63,000 52,000
Kohl’s –Rogers 43,000 33,000 27,000
Target –Rogers 36,000 34,000 34,000
Costco –Maple Grove 31,000 32,000 31,000
Page 38 of 65
Leakage Report
2021 2022 2023
Chick-fil-A –CR 14 Chick-fil-A –CR 14 McDonald’s –R 24
Raising Cane’s –CR 13 Chick-fil-A –MG 12 Chick-fil-A –CR 21
Chick-fil-A –MG 9 Raising Cane’s –CR 11 McDonald’s –BL 19
Raising Cane’s –MG 9 Raising Cane’s –MG 10 Wendy’s –R 17
Freddy’s –R 8 Noodle’s –R 9 Raising Cane’s –CR 16
Page 39 of 65
Downtown Analysis
Page 40 of 65
Downtown Analysis
0
10000
20000
30000
40000
50000
60000
70000
80000
January February March April May June July August September October November December
Downtown Visitation
2019 2020 2021 2022 2023 2024
Page 41 of 65
Downtown Analysis
Annual visitation trends
2019 2020 2021 2022 2023 2024
Total 695,000 564,000 705,000 717,000 813,000 846,000 est.
YTD (5/1)222,000 182,000 223,000 212,000 255,000 266,000
Page 42 of 65
Downtown Analysis
Top Visitation Days – 2023
Thursday, August 17 4880 FM/RCS: The Fabulous Armadillos
Saturday, May 13 4800 ERHS Prom
Thursday, July 20 4500 FM/RCS: Church of Cash
Thursday, June 22 3900 FM/RCS: A Hard Days Night
Saturday, September 30 3700
Thursday, June 29 3700 FM/RCS: The Whitesidewalls
Friday, December 29 3700
Friday, October 27 3700 Trick or Treat
Thursday, June 15 3600 FM/RCS: Mick Sterling
Page 43 of 65
Downtown Analysis
Top 5 Demographic Types: 2023 and 2024
Booming with Confidence 20.8%
Promising Families 17.7%
Suburban Style 10.1%
Flourishing Families 10%
Thriving Boomers 9.4%
Page 44 of 65
Downtown Analysis
Top 5 zip code visitation by home location
Elk River 337,000 +23.3K 41.4% +7.4%
Zimmerman 68,400 +4.2K 8.4% +6.5%
Anoka 53,600 +4.1K 6.6% +8.4%
Big Lake 39,000 +10K 4.8% +34.5%
Princeton 23,500 +4.3K 2.9% +22.2%
813,200 total visits
Page 45 of 65
Main Street
Page 46 of 65
Main Street
Average cars per day
2019 16,200
2020 13,200
2021 15,000
2022 16,300
2023 17,900
2024 ytd 14,600
2024 construction 11,800
Page 47 of 65
169 Redefine Analysis
Page 48 of 65
169 Redefine Analysis
100000
150000
200000
250000
300000
350000
1/1 1/15 1/29 2/12 2/26 3/11 3/25 4/8 4/22 5/6 5/20 6/3 6/17 7/1 7/15 7/29 8/12 8/26 9/9 9/23 10/7 10/21 11/4 11/18 12/2 12/16 12/30
NB Highway 169 Weekly Traffic Counts
2019 2020 2021 2022 2023 2024
Page 49 of 65
Thank you!
Questions?
Requests?
Page 50 of 65
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Housing and Redevelopment Authority
Item Number
6.4
Meeting Date
June 3, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Extension - Sale of Main and Gates Properties
Reviewed by:
Cal Portner
Action Requested
Approve, by motion, Amendment Two to the purchase agreement for the HRA properties at Main Street and
Gates Avenue.
Background/Discussion
Ron Touchette, the buyer and lead developer of the Main and Gates site, has provided a progress update on
the Main and Gates development as the project moves towards commencement this summer.
The timeline has been altered slightly in which Mr. Touchette is uncertain whether the property transaction
can close at the end of June as contemplated in the first extension of the purchase agreement.
The HRA has been requested to provide a second extension of one month to facilitate the completion of
necessary steps ahead of closing.
Financial Impact
N/A
Mission/Policy/Goal
The HRA facilitates certain redevelopment projects.
Attachments
1. Proposed Amendment Received from Ron Touchette
Page 51 of 65
EL185\75\938781.v2
SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT
This Second Amendment to Purchase and Sale Agreement (this “Second Amendment”) is
made this 29th day of May, 2024 by and between the Elk River Housing and Redevelopment
Authority, a Minnesota body corporate and politic (the “HRA”) and Ronald J. Touchette, a married
person (the “Buyer”).
WHEREAS, the HRA and the Buyer entered into that certain Purchase and Sale Agreement
dated June 21st, 2023 (the “Agreement”) providing for the conveyance by the HRA to the Buyer of
certain property located in the City of Elk River, Sherburne County, Minnesota and legally described
on the attached Exhibit A (the “Property”); and
WHEREAS, due to unanticipated delays, the parties have determined to further extend the
Closing Date set forth in the Agreement to July 31, 2024 or such other date on which the Seller and
Purchaser may agree; and
WHEREAS, in an event wherein the Seller does not agree to the amendments contained in items 1
and 2 below of this Second Amendment then the Purchase Agreement shall be immediately cancelled and
have no further force and effect as of June 1, 2024 and all Earnest Money shall be returned to the Buyer.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
1. Amendment to Paragraph 5 of the Agreement. The first paragraph of Paragraph 5 of
the Agreement is amended to read as follows:
5. CONTINGENCIES WHICH MUST BE EXERCISED BY WRITTEN
NOTICE TO THE HRA ON OR BEFORE JUNE 28, 2024 (THE
“CONTINGENCY DATE”):
2. Amendment to Paragraph 6 of the Agreement. The first paragraph of Paragraph 6 of
the Agreement is amended to read as follows:
6. CLOSING. The closing of the purchase and sale contemplated by this
Agreement (the “Closing”) shall occur on July 31, 2024 or on such other
date on which the parties may agree (the “Closing Date”). The HRA
agrees to deliver possession of the Property to the Buyer on the Closing
Date
3. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain
in full force and effect.
Authentisign ID: A4468DA9-FD1D-EF11-86D2-000D3A8F026D
Page 52 of 65
EL185\75\938781.v2
IN WITNESS WHEREOF, the parties have executed this First Amendment to Purchase and Sale
Agreement as of the date written above.
SELLER: BUYER:
ELK RIVER HOUSING AND RONALD J. TOUCHETTE
REDEVELOPMENT AUTHORITY
Denny Chuba, President Ronald J. Touchette
Brent O’Neil, Executive Director
Authentisign ID: A4468DA9-FD1D-EF11-86D2-000D3A8F026D
Page 53 of 65
EL185\75\938781.v2
EXHIBIT A
Legal Description of the Property
Parcels:
Lot 1, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof,
Sherburne County, Minnesota.
PID 75-401-0105
AND;
Lot 3 & Lot 4 except the East 15 feet, Block 1, Auditors Subdivision No 5, according to
the recorded plat thereof, Sherburne County, Minnesota.
PID 75-401-0115
AND;
Lot 7, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof,
Sherburne County, Minnesota.
PID 75-401-0130
AND;
Lot 8, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof,
Sherburne County, Minnesota.
PID 75-401-0135
AND;
Lot 9, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof,
Sherburne County, Minnesota.
PID 75-401-0140
AND;
Lot 10, Block 1, Auditors Subdivision No 5, according to the recorded plat thereof,
Sherburne County, Minnesota.
PID 75-401-0145
AND;
LOT 11 & that part of Lot 12 lying West of the East 4.50 feet of Lot 12, Block 1,
Auditors Subdivision No 5, according to the recorded plat thereof, Sherburne County,
Minnesota.
PID 75-401-0150
* All legal descriptions are subject to verification by a survey.
Authentisign ID: A4468DA9-FD1D-EF11-86D2-000D3A8F026D
Page 54 of 65
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Housing and Redevelopment Authority
Item Number
6.5
Meeting Date
June 3, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
General Updates
Reviewed by:
Cal Portner
Action Requested
This item is presented for information and discussion purposes.
Background/Discussion
This item is an opportunity to discuss relevant topics and other non-action items of the board.
Financial Impact
N/A
Mission/Policy/Goal
The mission of the HRA is to facilitate certain housing and redevelopment projects.
Attachments
None
Page 55 of 65
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Housing and Redevelopment Authority
Item Number
8.1
Meeting Date
June 3, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Substandard Property and Redevelopment at 19116
Troy Street
Reviewed by:
Cal Portner
Action Requested
Item presented for information and discussion purposes.
Background/Discussion
The property owner at 19116 Troy Street NW passed away a few years ago. Since then, the home has
become uninhabitable and the property has numerous code violations.
The city will initiate a condemnation process on the property due to its unsuitability as a habitable residence.
The HRA would be in a position to facilitate the redevelopment of the property as a single-family home. The
purpose of the work session is to determine the HRA's interest and involvement in being a key partner in the
acquisition and redevelopment process.
Financial Impact
N/A
Mission/Policy/Goal
To facilitate housing and redevelopment opportunities.
Attachments
1. 19116 Troy Street Exhibits
Page 56 of 65
Item 8.1 -- 19116 Troy St. NW
Page 57 of 65
Page 58 of 65
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Housing and Redevelopment Authority
Item Number
8.2
Meeting Date
June 3, 2024
Prepared By
Joshua Mollan, Economic Development Specialist
Item Description
Housing Rehab Loan Program Overview
Reviewed by:
Brent O'Neil
Cal Portner
Action Requested
This item is for information and discussion purposes.
Background/Discussion
This is an opportunity for staff and commission members to review and discuss the Housing Rehabilitation
Loan Program policy and guidelines following some questions at the March meeting. Topics may include
eligibility boundary, and interest rate, among others.
Financial Impact
N/A
Mission/Policy/Goal
Improve existing housing stock by offering incentives or programs to repair and maintain residential
properties.
Attachments
1. Rehab Loan Guidelines 2024
2. Urban Service Area 2024
Page 59 of 65
Exhibit A Page 1
Agreement between Elk River HRA and Center for Energy and Environment
EXHIBIT A
PROGRAM GUIDELINES
This document includes guidelines for the
REVOLVING LOAN PROGRAM
Page 60 of 65
Exhibit A Page 2
Agreement between Elk River HRA and Center for Energy and Environment
CITY of ELK RIVER REVOLVING LOAN PROGRAM GUIDELINES
The Elk River Housing and Redevelopment Authority has funds available for homeowners to make
improvements to their properties. The Elk River Revolving Loan Program is designed to supplement
existing loan programs available from MHFA, CEE, private lenders and other housing resources. This
program is not intended to be the sole source of improvement funds available to the City. Center for
Energy and Environment shall serve as the administrator for the Elk River Loan Program and will secure
the most beneficial financing based on the borrower’s needs independent of the funding source.
Revolving Loan Program
Interest Rate: 4%
Amortization Type: Amortizing (Monthly Payments Required).
Loan Amount: Minimum of $5,000 and Maximum of $35,000.
Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower’s ability to repay the loan.
• $5,000 to $15,000 – up to 10 years
• $15,001 to $35,000 – up to 15 years
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Elk River AND the Urban Services District. A recent water and sewer utility bill may be used
to verify the borrower is in the Urban Services District. If applicant does not have a utility bill a letter of
eligibility from the City of Elk River can be used. Townhomes, Condominiums and properties held in a
Trust are eligible. The property must be at least 20 years old. Property must not be in a flood plain.
Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes, and
properties used for commercial purposes. Properties located in a flood plain. Properties NOT located in
the Urban Services District.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers,
and business entities.
Ownership/Occupancy: Owner- occupied only.
Page 61 of 65
Exhibit A Page 3
Agreement between Elk River HRA and Center for Energy and Environment
Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 100% of the property value. Half of the improvement value may be added to the initial
property value.
Income Limit: No maximum income limit.
Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt
to income ratio in excess of 43% will be ineligible to receive financing.
Credit Score Requirement: All borrowers must have a minimum of a 620 credit score.
Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments
history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be
current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at
least 24 months prior to loan closing. 5) The redemption period on prior foreclosures must have
occurred at least 24 months prior to the loan application date. 6) Generally, no more than two 30-day
late payments on credit report in the past year (without reasonable explanation). Any 30 day late
requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No
defaulted government loans.
Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding
balance(s) cannot exceed the maximum program limit and previous loans are current and have an
acceptable payment history.
Eligible Use of Funds: Loans may be used to finance most permanent interior and exterior
improvements including, but not limited to: roofing, siding, doors/windows, plumbing, electrical, HVAC,
insulation, solar, garage, driveways, sidewalks/steps, painting, flooring, additions, landscaping, etc.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non-permanent appliances(unless part of a full kitchen remodel),
and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT
allowed.
Bids: Only one estimate is required. All contractors must be properly licensed.
Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity”
basis. Loan funds may be used only for the purchase of materials and to rent tools/ equipment, but not
to compensate for labor.
Remodeling Advisor Visit (RAV): The Remodeling Advisor Visit provides rehabilitation and/or
remodeling advice upon request of the resident. The intent is to help residents improve their homes by
providing technical assistance before and during the bidding and construction process. All “Eligible
Properties” are eligible for this service. This visit is not required and would be paid by the borrower(s).
Page 62 of 65
Exhibit A Page 4
Agreement between Elk River HRA and Center for Energy and Environment
Post Installation Inspection: Permits must be obtained and signed off by a City inspector where
required; when not required, a post installation inspection will be performed by a City of Elk River
representative to ensure the work has been completed before any funds will be released.
Loan Security: All loans will be secured with a mortgage in favor of the Elk River Housing and
Redevelopment Authority. Borrower will pay all applicable title and filing fees, which may be financed in
the loan amount.
Borrower Fees: Borrower will be responsible for a 1% origination Fee, $50 Document Preparation Fee,
mortgage filing and service fees, flood certificate, credit report fees and any other applicable closing
costs, all which may be financed in the loan amount.
Underwriting Decision: Applicants must have acceptable credit history (see Credit Requirements). CEE
will approve or deny loans based on a credit report, income verification and other criteria as deemed
necessary through CEE’s underwriting guidelines. CEE shall refer to the Elk River HRA for any
questionable situations. All borrowers must have a credit score of at least 620.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
General Program Conditions
Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify.
Applicants must provide a completed application package including, but not limited to:
Completed and signed application form
Proof of income
Bids or estimates for proposed projects
Valid Identification
Other miscellaneous documents CEE may require.
Program Costs: Loan origination and other administrative fees will be paid out of the Program Budget.
Loan program marketing efforts will be billed directly to the City of Elk River Housing and
Redevelopment Authority. Should the HRA choose to commission CEE for marketing support it will be a
separate expense.
Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance
the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower
must obtain the additional funds and show verification of the additional funds in order to be approved
for the loan.
Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made
upon completion of work. An inspection will be performed by a city inspector and/or representative to
verify the completion of the work. The following items must be received prior to final disbursement of
funds:
• Final invoice or proposal from contractor (or materials list from supplier);
• Final inspection verification by a City Inspector or representative;
Page 63 of 65
Exhibit A Page 5
Agreement between Elk River HRA and Center for Energy and Environment
• Completion certificate(s) signed by borrower, contractor and city inspector or representative (if
a permit is not required);
• Lien waiver for entire cost of work;
• Evidence of city permit (if required)
Page 64 of 65
Page 65 of 65