Loading...
HRA Packet for September 3, 2024 Housing and Redevelopment Authority Regular Meeting Agenda Tuesday, September 3, 2024 5:30 PM Elk River City Hall ▪ Regular meeting in Council Chambers 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 Draft Minutes - August 5, 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 2025 Budget Adoption and Levy Recommendation 6.3 General Updates 6.4 Main and Gates Properties Update 7. MOTION TO ADJOURN REGULAR MEETING Page 1 of 32 DRAFTPage 2 of 32 DRAFTPage 3 of 32 DRAFTPage 4 of 32 DRAFTPage 5 of 32 DRAFTPage 6 of 32 08-29-2024 11:24 AM ELK RIVER CITY COUNCIL REPORT PAGE: 1 VENDOR SORT KEY DESCRIPTION FUND DEPARTMENT AMOUNT_ ELK RIVER MUNICIPAL UTILITIES HOME IMPROVEMENT INSERT HRA Housing & Redevelopmen 549.41_ TOTAL: 549.41 KENNEDY & GRAVEN CHARTERED LEGAL SVCS-MAIN & GATES HRA Housing & Redevelopmen 65.00 LEGAL SVCS-MAIN & GATES HRA Housing & Redevelopmen 65.00_ TOTAL: 130.00 TYLER CHESEMOVE JUL 24 LAWN SERVICE HRA Housing & Redevelopmen 400.00_ TOTAL: 400.00 YARDWORX OUTDOOR SERVICES LLC BASKET UPKEEP - SEP 24 HRA Housing & Redevelopmen 3,334.60_ TOTAL: 3,334.60 =============== FUND TOTALS ================ 910 HRA 4,414.01 -------------------------------------------- GRAND TOTAL: 4,414.01 -------------------------------------------- TOTAL PAGES: 1 Page 7 of 32 8-27-2024 08:43 AM CITY OF ELK RIVER PAGE: 1 BALANCE SHEET AS OF: AUGUST 31ST, 2024 910-HRA ACCOUNT # ACCOUNT DESCRIPTION BALANCE _____________________________________________________________________________________________ ASSETS ====== 910-1010 Cash - HRA 868,747.76 910-1190 Loans Receivable 208,049.86 910-1193 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 157,254.48 910-1610 Land Held for Redevelopment 382,000.00 2,016,052.10 TOTAL ASSETS 2,016,052.10 ============== LIABILITIES =========== ______________ ______________ EQUITY ====== 910-2400 Fund Balance 1,924,693.80 TOTAL BEGINNING EQUITY 1,924,693.80 TOTAL REVENUE 231,614.31 TOTAL EXPENSES 140,256.01 TOTAL REVENUE OVER/(UNDER) EXPENSES 91,358.30 TOTAL EQUITY & REV. OVER/(UNDER) EXP. 2,016,052.10 TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 2,016,052.10 ============== Page 8 of 32 8-27-2024 08:45 AM CITY OF ELK RIVER PAGE: 1 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: AUGUST 31ST, 2024 910-HRA FINANCIAL SUMMARY 66.67% OF YEAR COMP. CURRENT CURRENT YEAR TO DATE % OF BUDGET BUDGET PERIOD ACTUAL BUDGET BALANCE ___________________________________________________________________________________________________________________ REVENUE SUMMARY HRA 445,100.00 0.00 231,614.31 52.04 213,485.69 TOTAL REVENUES 445,100.00 0.00 231,614.31 52.04 213,485.69 ============= ============= ============= ======= ============= EXPENDITURE SUMMARY Economic Development Housing & Redevelopment 445,100.00 50,261.49 140,256.01 31.51 304,843.99 TOTAL Economic Development 445,100.00 50,261.49 140,256.01 31.51 304,843.99 TOTAL EXPENDITURES 445,100.00 50,261.49 140,256.01 31.51 304,843.99 ============= ============= ============= ======= ============= REVENUES OVER/(UNDER) EXPENDITURES 0.00 ( 50,261.49) 91,358.30 ( 91,358.30) Page 9 of 32 8-27-2024 08:45 AM CITY OF ELK RIVER PAGE: 2 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: AUGUST 31ST, 2024 910-HRA 66.67% 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 0.00 226,116.10 51.38 213,983.90 TOTAL Taxes 440,100.00 0.00 226,116.10 51.38 213,983.90 Intergovernmental Rev _____________ _____________ _____________ _______ _____________ Charges for Services _____________ _____________ _____________ _______ _____________ Other Revenue 910-3-0000-3621 Interest Income 5,000.00 0.00 5,498.21 109.96 ( 498.21) TOTAL Other Revenue 5,000.00 0.00 5,498.21 109.96 ( 498.21) Other Financing Sources _____________ _____________ _____________ _______ _____________ Transfers In _____________ _____________ _____________ _______ _____________ _____________________________________________________________________________ TOTAL HRA 445,100.00 0.00 231,614.31 52.04 213,485.69 ___________________________________________________________________________________________________________________ TOTAL REVENUE 445,100.00 0.00 231,614.31 52.04 213,485.69 ============= ============= ============= ======= ============= Page 10 of 32 8-27-2024 08:45 AM CITY OF ELK RIVER PAGE: 3 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: AUGUST 31ST, 2024 910-HRA Economic Development 66.67% 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 6,376.11 44,188.27 53.50 38,411.73 910-4-6100-4104 PERA 6,200.00 478.21 3,314.11 53.45 2,885.89 910-4-6100-4105 FICA 5,100.00 395.32 2,750.39 53.93 2,349.61 910-4-6100-4107 Medicare 1,200.00 92.45 643.23 53.60 556.77 910-4-6100-4108 Insurance 16,200.00 1,594.80 11,163.60 68.91 5,036.40 910-4-6100-4109 Workers Comp 350.00 0.00 339.75 97.07 10.25 TOTAL Personal Services 111,650.00 8,936.89 62,399.35 55.89 49,250.65 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 90.00 817.00 10.21 7,183.00 910-4-6100-4319 Professional Services 32,000.00 0.00 800.00 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 4,000.00 400.00 800.00 20.00 3,200.00 910-4-6100-4404 Software Services 9,100.00 0.00 4,713.36 51.80 4,386.64 910-4-6100-4409 Contractual Services 27,750.00 3,334.60 26,172.40 94.31 1,577.60 910-4-6100-4433 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 3,824.60 40,356.66 13.85 251,093.34 Capital Outlay _____________ _____________ _____________ _______ _____________ Debt Service _____________ _____________ _____________ _______ _____________ Transfers Out 910-4-6100-4721 Transfer-General Fund 37,500.00 37,500.00 37,500.00 100.00 0.00 910-4-6100-4735 Transfer-EDA 4,000.00 0.00 0.00 0.00 4,000.00 TOTAL Transfers Out 41,500.00 37,500.00 37,500.00 90.36 4,000.00 ___________________________________________________________________________________________________________________ TOTAL Housing & Redevelopment 445,100.00 50,261.49 140,256.01 31.51 304,843.99 ___________________________________________________________________________________________________________________ TOTAL Economic Development 445,100.00 50,261.49 140,256.01 31.51 304,843.99 ___________________________________________________________________________________________________________________ TOTAL EXPENDITURES 445,100.00 50,261.49 140,256.01 31.51 304,843.99 ============= ============= ============= ======= ============= REVENUES OVER/(UNDER) EXPENDITURES 0.00 ( 50,261.49) 91,358.30 ( 91,358.30) Page 11 of 32 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 September 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, 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. 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. CEE Monthly Loan Activity Summary Page 12 of 32 Page 13 of 32 Page 14 of 32 Page 15 of 32 Page 16 of 32 Page 17 of 32 Page 18 of 32 Page 19 of 32 Page 20 of 32 Page 21 of 32 Page 22 of 32 Page 23 of 32 Page 24 of 32 Page 25 of 32 CEE Monthly Loan Activity Summary 9/3/24 Page 26 of 32 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 September 3, 2024 Prepared By Brent O'Neil, Economic Development Director Item Description 2025 Budget Adoption and Levy Recommendation Reviewed by Cal Portner Action Requested Approve, by motion, the 2025 HRA budget and goals, and recommend to the City Council that $439,950 be included in the Preliminary Levy. Background/Discussion The proposed 2025 budget is very similar to the baseline budget for 2024, with similar activities and expenses anticipated. The total proposed expenditures decrease slightly from $445,100 to $444,950, a year-over-year reduction of $150. The proposed levy would also decrease by the same amount, going from $440,100 to $439,950 in 2025. Of note, the budget and levy continue to allocate $200,000 for current or future property acquisition. The goals and performance measures are largely the same year-to-year as well. Financial Impact Adoption of the budget sets the 2025 expenditures at $444,950. Mission/Policy/Goal HRA bylaws state the budget be presented to the HRA annually for adoption prior to Council adoption of the Preliminary Levy each September. Attachments 1. 2025 HRA Proposed Budget and Goals Page 27 of 32 Division: Completed by: Date: Performance Measure 2021 Actual 2022 Actual 2023 Actual 2024 Estimated 2024 YTD 2025 Projected Number of HRA Rehab Loan applications approved 0 0 4 5 2 5 Rehab Loan Funds Outstanding (year-end)$160,000 $52,500 $162,000 $250,000 $210,000 $400,000 Residential Property Re- investment (by permit value)$8,000,000 $17,800,000 $19,700,000 $9,000,000 $7,000,000 $15,000,000 Number of Multi-family Units Added (completions)70 0 90 100 142 50 Performance Measures & Goals for 2025 Housing and Redevelopment Brent O'Neil August 29, 2024 Promote preservation of housing stock Promote investment in residential properties within Elk River and target individuals interested in the blighted properties program and the HRA Rehab Loan Program. Identify dilapidated properties and work with city code enforcement. Protect and strengthen rental properties. Division Goal Goal Objective/Task Promote a vital downtown Enhance redevelopment opportunities for C/I properties Participate in the Downtown ER Business Association Meetings. Work with the DERBA to develop a beautification plan for the Main Street Corridor and/or engagement of redesign for Main Street. Promote and/or modify the Downtown Facade Improvement microloan program. Pursue strategic acquisition and sale of downtown redevelopment property. Facilitate future use options for Elk River Meats site. Identify business owners interested in redevelopment blighted C/I properties. Work with the building department to identify properties eligible for the blighted properties C/I program. Hold periodic discussions with various departments (police, fire, building, and planning) to discuss potential redevelopment opportunities. Acquire properties or short- and long-term redevelopment Monitor the market and identify properties for potential acquisition which align with the strategic objectives of the HRA, including substandard structures. Optimize use of studies, data, and research tools As needed, conduct studies and conduct research to best guide the HRA in its activities. Utilize tools such as analytical software to better understand conditions and opportunities. Page 28 of 32 Dept:910-6100 - Housing & Redevelopment Authority Acct.2021 2022 2023 2024 2025 No.Actual Actual Actual BUDGET BUDGET REVENUES: 3111 Property Taxes 320,897 328,888 398,899 440,100 439,950 3322 MV Credit 176 192 236 - 3414 Development Fee - - - - 3621 Interest Income 5,541 4,178 7,651 5,000 5,000 3629 Miscellaneous Revenue - - - - TOTAL HRA REVENUES 326,614 333,258 406,786 445,100 444,950 EXPENDITURES: PERSONAL SERVICES 4101 Regular Pay 55,741 62,199 77,319 82,600 87,200 4104 PERA 3,678 4,665 5,799 6,200 6,550 4105 FICA 3,456 3,856 4,785 5,100 5,400 4107 Medicare 808 902 1,119 1,200 1,250 4108 Insurance 3,421 11,802 16,070 16,200 17,000 4109 Workers Comp 322 344 314 350 450 TOTAL PERSONAL SERVICES 67,426 83,768 105,406 111,650 117,850 SUPPLIES 4201 Office Supplies 75 27 - 50 (shared with EDA)50 4219 Operating Supplies 4,931 864 1,092 500 500 Downtown permanent fixtures 500 500 TOTAL SUPPLIES 4,931 939 1,119 500 550 SERVICES & CHARGES 4304 Legal Fees 8,451 4,266 975 8,000 6,500 Misc.8,000 6,500 4319 Professional Services 18,096 850 - 32,000 27,000 General 2,000 2,000 Studies: Downtown Parking, Housing Update 30,000 25,000 4322 Postage 3 2 1 50 50 Postage 50 50 4331 Travel, Conferences & Schools 45 35 52 200 200 MREJ - Housing Seminars 200 200 4349 Advertising/Marketing 11,288 8,049 9,110 9,200 9,500 Housing Program Marketing Materials - printing 2,500 2,500 Seasonal Outreach 1,000 1,000 HRA/EDA Shared Website 5,700 6,000 Lead Forensics - Split between HRA/EDA - 4359 Publishing 624 80 189 350 300 Public hearing notices 350 300 4361 Insurance 2,670 - - - - Property insurance 4389 Utilities - 63 176 - - 4401 Building Maint. Services 3,308 2,370 5,535 4,000 4,000 Lawn/snow removal 4,000 4,000 2025 BUDGET DETAIL Explanation/Detail of Supplies or Services 8/29/2024 Page 29 of 32 Dept:910-6100 - Housing & Redevelopment Authority Acct.2021 2022 2023 2024 2025 No.Actual Actual Actual BUDGET BUDGETExplanation/Detail of Supplies or Services 4404 Software Services 7,481 9,100 6,500 Placer Analytics 7,600 5,000 CitizenServe 1,500 1,500 4409 Contractual Services 1,502 25,659 91,686 27,750 27,000 CEE Administrative Fee 5,000 5,000 Hanging planters and downtown fixtures/maintenance 22,750 22,000 4433 Dues & Subscriptions 247 7,125 2,464 800 2,500 Downtown Spotlight 300 Misc.500 2,500 4437 Property Taxes - - - - - 4440 Miscellaneous - - - 200,000 200,000 Property acquisition/development bank 200,000 200,000 TOTAL SERVICES & CHARGES 46,234 48,499 117,669 291,450 283,550 CAPITAL OUTLAY 4510 Land - 185,426 TRANSFERS OUT 41,500 43,000 4721 General Fund 33,900 35,000 36,500 37,500 39,000 General Fund - plant maintenance 8,000 - - 4735 Economic Development Authority (shared expenses)3,500 3,500 4,000 4,000 4,000 TOTAL HRA EXPENDITURES 163,991 357,132 264,694 445,100 444,950 ^^ REVENUES OVER/(UNDER) EXPENDITURES 162,623 (23,874) 142,092 - - 8/29/2024 Page 30 of 32 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 September 3, 2024 Prepared By Brent O'Neil, Economic Development Director Item Description General Updates Reviewed by Cal Portner Action Requested 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 31 of 32 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 September 3, 2024 Prepared By Brent O'Neil, Economic Development Director Item Description Main and Gates Properties Update Reviewed by Cal Portner Action Requested Item presented for information and discussion purposes. Background/Discussion With the Main and Gates property sale slated for closing on or before October 28, staff will provide monthly updates on the project throughout the closing period. Financial Impact N/A Mission/Policy/Goal Support the growth and development of the community. Attachments None Page 32 of 32