HRA Packet July 1, 2024
Housing and Redevelopment
Authority
Regular Meeting
&
Work Session
Agenda
Monday, July 1, 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 - June 3, 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 Amendment to Purchase Agreement for Main and Gates
6.3 General Updates
7. MOTION TO ADJOURN REGULAR MEETING
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
Page 1 of 36
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
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 Redevelopment of 19116 Troy Street NW
9. MOTION TO ADJOURN WORKSESSION
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DRAFTPage 3 of 36
DRAFTPage 4 of 36
DRAFTPage 5 of 36
DRAFTPage 6 of 36
Housing and Redevelopment Authority Minutes
June 3, 2024
Denny Chuba, Chair
Page 5 of 5
Tina Allard, City Clerk DRAFTPage 7 of 36
06-27-2024 01:43 PM ELK RIVER CITY COUNCIL REPORT PAGE: 1
VENDOR SORT KEY DESCRIPTION FUND DEPARTMENT AMOUNT_
CAMPBELL KNUTSON P.A.LEGAL SVCS - HRA HRA Housing & Redevelopmen 324.00_
TOTAL:324.00
CITY OF ELK RIVER REIMB SALARIES JUN, W/C HRA Housing & Redevelopmen 6,302.02
REIMB SALARIES JUN, W/C HRA Housing & Redevelopmen 472.65
REIMB SALARIES JUN, W/C HRA Housing & Redevelopmen 390.73
REIMB SALARIES JUN, W/C HRA Housing & Redevelopmen 91.38
REIMB SALARIES JUN, W/C HRA Housing & Redevelopmen 1,594.80
REIMB SALARIES JUN, W/C HRA Housing & Redevelopmen 98.00_
TOTAL:8,949.58
PLACER LABS, INC.ANNUAL PLATFORM ACCESS HRA Housing & Redevelopmen 4,713.36_
TOTAL:4,713.36
TYLER CHESEMOVE MAY 24 LAWN SERVICE HRA Housing & Redevelopmen 400.00_
TOTAL:400.00
YARDWORX OUTDOOR SERVICES LLC BASKET UPKEEP - JUL 24 HRA Housing & Redevelopmen 3,334.60_
TOTAL:3,334.60
=============== FUND TOTALS ================
910 HRA 17,721.54
--------------------------------------------
GRAND TOTAL:17,721.54
--------------------------------------------
TOTAL PAGES: 1
4.2.
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6-26-2024 07:38 AM CITY OF ELK RIVER PAGE: 1
BALANCE SHEET
AS OF: JUNE 30TH, 2024
910-HRA
ACCOUNT # ACCOUNT DESCRIPTION BALANCE
_____________________________________________________________________________________________
ASSETS
======
910-1010 Cash - HRA 700,976.70
910-1190 Loans Receivable 211,336.27
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
1,856,136.26
TOTAL ASSETS 1,856,136.26
==============
LIABILITIES
=========== ______________ ______________
EQUITY
======
910-2400 Fund Balance 1,924,693.80
TOTAL BEGINNING EQUITY 1,924,693.80
TOTAL REVENUE 3,543.44
TOTAL EXPENSES 72,100.98
TOTAL REVENUE OVER/(UNDER) EXPENSES ( 68,557.54)
TOTAL EQUITY & REV. OVER/(UNDER) EXP. 1,856,136.26
TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 1,856,136.26
4.3.
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6-26-2024 07:39 AM CITY OF ELK RIVER PAGE: 1
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JUNE 30TH, 2024
910-HRA
FINANCIAL SUMMARY 50.00% OF YEAR COMP.
CURRENT CURRENT YEAR TO DATE % OF BUDGET
BUDGET PERIOD ACTUAL BUDGET BALANCE
___________________________________________________________________________________________________________________
REVENUE SUMMARY
HRA 445,100.00 0.00 3,543.44 0.80 441,556.56
TOTAL REVENUES 445,100.00 0.00 3,543.44 0.80 441,556.56
============= ============= ============= ======= =============
EXPENDITURE SUMMARY
Economic Development
Housing & Redevelopment 445,100.00 14,486.19 72,100.98 16.20 372,999.02
TOTAL Economic Development 445,100.00 14,486.19 72,100.98 16.20 372,999.02
TOTAL EXPENDITURES 445,100.00 14,486.19 72,100.98 16.20 372,999.02
============= ============= ============= ======= =============
REVENUES OVER/(UNDER) EXPENDITURES 0.00 ( 14,486.19)( 68,557.54) 68,557.54
4.4.
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6-26-2024 07:39 AM CITY OF ELK RIVER PAGE: 2
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JUNE 30TH, 2024
910-HRA
50.00% 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 0.00 3,543.44 70.87 1,456.56
TOTAL Other Revenue 5,000.00 0.00 3,543.44 70.87 1,456.56
Other Financing Sources _____________ _____________ _____________ _______ _____________
Transfers In _____________ _____________ _____________ _______ _____________
_____________________________________________________________________________
TOTAL HRA 445,100.00 0.00 3,543.44 0.80 441,556.56
___________________________________________________________________________________________________________________
TOTAL REVENUE 445,100.00 0.00 3,543.44 0.80 441,556.56
============= ============= ============= ======= =============
Page 11 of 36
6-26-2024 07:39 AM CITY OF ELK RIVER PAGE: 3
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JUNE 30TH, 2024
910-HRA
Economic Development 50.00% 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 6,302.03 31,510.14 38.15 51,089.86
910-4-6100-4104 PERA 6,200.00 472.65 2,363.25 38.12 3,836.75
910-4-6100-4105 FICA 5,100.00 390.73 1,964.34 38.52 3,135.66
910-4-6100-4107 Medicare 1,200.00 91.38 459.40 38.28 740.60
910-4-6100-4108 Insurance 16,200.00 1,594.80 7,974.00 49.22 8,226.00
910-4-6100-4109 Workers Comp 350.00 0.00 241.75 69.07 108.25
TOTAL Personal Services 111,650.00 8,851.59 44,512.88 39.87 67,137.12
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 0.00 403.00 5.04 7,597.00
910-4-6100-4319 Professional Services 32,000.00 800.00 800.00 2.50 31,200.00
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 0.00 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 4,834.60 19,331.20 69.66 8,418.80
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 5,634.60 27,588.10 9.47 263,861.90
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 14,486.19 72,100.98 16.20 372,999.02
___________________________________________________________________________________________________________________
TOTAL Economic Development 445,100.00 14,486.19 72,100.98 16.20 372,999.02
___________________________________________________________________________________________________________________
TOTAL EXPENDITURES 445,100.00 14,486.19 72,100.98 16.20 372,999.02
============= ============= ============= ======= =============
REVENUES OVER/(UNDER) EXPENDITURES 0.00 ( 14,486.19)( 68,557.54) 68,557.54
Page 12 of 36
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
July 1, 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, the HRA's portfolio is performing as expected with no
delinquencies or late payments, and $97,710 remains available for new loan disbursements in 2024.
After the work session last month and prior conversations with the HRA, staff is not suggesting any changes
to the program terms, or eligibility area.
Financial Impact
N/A
Mission/Policy/Goal
Improve housing stock by offering incentives or programs to repair or maintain residential properties.
Attachments
1. CEE Monthly Loan Activity Report
2. Monthly Loan Activity Summary
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CEE Monthly Loan Activity Summary
7/1/24 6.1 at2
Page 27 of 36
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
July 1, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Amendment to Purchase Agreement for Main and
Gates
Reviewed by
Cal Portner
Action Requested
Approve, by motion, Amendment Three to the Purchase and Sale Agreement for the Main and Gates
Properties.
Background/Discussion
The HRA's agreement to sell the property at Main and Gates to Ron Touchette has been twice amended to
move the closing to July 31, 2024. Mr. Touchette continues to work out final details on the site in anticipation
of closing on the sale and commencing the construction project. He is still working through due diligence
items and is requesting the HRA extend the closing date to October 28. He will be present to discuss the
project and answer any questions on the status of the project.
Financial Impact
N/A
Mission/Policy/Goal
Promote housing and redevelopment projects.
Attachments
1. Third Amendment Main and Gates
Page 28 of 36
EL185\75\938781.v2
THIRD AMENDMENT TO PURCHASE AND SALE AGREEMENT
This Third Amendment to Purchase and Sale Agreement (this “Third Amendment”) is made
this 1st day of July, 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 as amended by that certain First Amendment to Purchase and Sale
Agreement dated March 14, 2024, and as further amended by that certain Second Amendment to
Purchase and Sale Agreement dated June 3rd, 2024 (as amended, 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 October 28, 2024 or such other date on which the Seller
and Purchaser may agree; and
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 SEPTEMBER 27, 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 October 28, 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.
Page 29 of 36
EL185\75\938781.v2
IN WITNESS WHEREOF, the parties have executed this Third 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
Page 30 of 36
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.
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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
Request for Action
To
Housing and Redevelopment Authority
Item Number
6.3
Meeting Date
July 1, 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 32 of 36
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
July 1, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Redevelopment of 19116 Troy Street NW
Reviewed by
Cal Portner
Action Requested
Item is presented for information and discussion purposes.
Background/Discussion
Following the HRA's discussion at its June meeting regarding potential involvement in acquiring and leading
redevelopment of the property at 19116 Troy Street NW, staff will present additional information in follow-
up to questions from HRA members.
Financial Impact
N/A
Mission/Policy/Goal
Mitigate blighted conditions.
Attachments
1. 8.1. HRA Staff Report 06-03-2024
Page 33 of 36
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
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Item 8.1 -- 19116 Troy St. NW
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