HRA Packet for August 5, 2024
Housing and Redevelopment
Authority
Regular Meeting
&
Work Session
Agenda
Monday, August 5, 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 Draft HRA Minutes - July 1, 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 Flower Basket Service Agreement
6.3 Liaison to Downtown Small Area Plan Steering Committee
6.4 Main and Gates Update
6.5 Participation in 19116 Troy Street Acquisition
6.6 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 Workshop for 2025 Budget
9. MOTION TO ADJOURN
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DRAFTPage 3 of 46
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08-01-2024 11:16 AM ELK RIVER CITY COUNCIL REPORT PAGE: 1
VENDOR SORT KEY DESCRIPTION FUND DEPARTMENT AMOUNT _
CAMPBELL KNUTSON P.A. LEGAL SVCS - HRA HRA Housing & Redevelopmen 90.00 _
TOTAL: 90.00
CITY OF ELK RIVER REIMB SALARIES - JUL 24 HRA Housing & Redevelopmen 6,376.11
REIMB SALARIES - JUL 24 HRA Housing & Redevelopmen 478.21
REIMB SALARIES - JUL 24 HRA Housing & Redevelopmen 395.32
REIMB SALARIES - JUL 24 HRA Housing & Redevelopmen 92.45
REIMB SALARIES - JUL 24 HRA Housing & Redevelopmen 1,594.80
TRANSFER - GENERAL FUND HRA Housing & Redevelopmen 37,500.00 _
TOTAL: 46,436.89
TYLER CHESEMOVE JUN 24 LAWN SERVICE HRA Housing & Redevelopmen 400.00 _
TOTAL: 400.00
YARDWORX OUTDOOR SERVICES LLC BASKET UPKEEP - AUG 24 HRA Housing & Redevelopmen 3,334.60 _
TOTAL: 3,334.60
=============== FUND TOTALS ================
910 HRA 50,261.49
--------------------------------------------
GRAND TOTAL: 50,261.49
--------------------------------------------
TOTAL PAGES: 1
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08-01-2024 11:16 AM ELK RIVER CITY COUNCIL REPORT PAGE: 2
SELECTION CRITERIA
------------------------------------------------------------------------------------------------------------------------------------
SELECTION OPTIONS
VENDOR SET: 01-CITY OF ELK RIVER
VENDOR: All
CLASSIFICATION: All
BANK CODE: Include: HRA
ITEM DATE: 0/00/0000 THRU 99/99/9999
ITEM AMOUNT: 99,999,999.00CR THRU 99,999,999.00
GL POST DATE: 7/02/2024 THRU 8/05/2024
CHECK DATE: 0/00/0000 THRU 99/99/9999
------------------------------------------------------------------------------------------------------------------------------------
PAYROLL SELECTION
PAYROLL EXPENSES: NO
EXPENSE TYPE: N/A
CHECK DATE: 0/00/0000 THRU 99/99/9999
------------------------------------------------------------------------------------------------------------------------------------
PRINT OPTIONS
PRINT DATE: None
SEQUENCE: By Vendor Sort
DESCRIPTION: Item
GL ACCTS: NO
REPORT TITLE: ELK RIVER CITY COUNCIL REPORT
SIGNATURE LINES: 0
------------------------------------------------------------------------------------------------------------------------------------
PACKET OPTIONS
INCLUDE REFUNDS: YES
INCLUDE OPEN ITEM:NO
------------------------------------------------------------------------------------------------------------------------------------
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8-01-2024 11:32 AM CITY OF ELK RIVER PAGE: 1
BALANCE SHEET
AS OF: JULY 31ST, 2024
910-HRA
ACCOUNT # ACCOUNT DESCRIPTION BALANCE
_____________________________________________________________________________________________
ASSETS
======
910-1010 Cash - HRA 911,384.04
910-1190 Loans Receivable 210,004.40
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
2,065,211.73
TOTAL ASSETS 2,065,211.73
==============
LIABILITIES
=========== ______________ ______________
EQUITY
======
910-2400 Fund Balance 1,924,693.80
TOTAL BEGINNING EQUITY 1,924,693.80
TOTAL REVENUE 230,446.45
TOTAL EXPENSES 89,928.52
TOTAL REVENUE OVER/(UNDER) EXPENSES 140,517.93
TOTAL EQUITY & REV. OVER/(UNDER) EXP. 2,065,211.73
TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 2,065,211.73
==============
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8-01-2024 11:33 AM CITY OF ELK RIVER PAGE: 1
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JULY 31ST, 2024
910-HRA
FINANCIAL SUMMARY 58.33% OF YEAR COMP.
CURRENT CURRENT YEAR TO DATE % OF BUDGET
BUDGET PERIOD ACTUAL BUDGET BALANCE
___________________________________________________________________________________________________________________
REVENUE SUMMARY
HRA 445,100.00 226,116.10 230,446.45 51.77 214,653.55
TOTAL REVENUES 445,100.00 226,116.10 230,446.45 51.77 214,653.55
============= ============= ============= ======= =============
EXPENDITURE SUMMARY
Economic Development
Housing & Redevelopment 445,100.00 17,721.54 89,928.52 20.20 355,171.48
TOTAL Economic Development 445,100.00 17,721.54 89,928.52 20.20 355,171.48
TOTAL EXPENDITURES 445,100.00 17,721.54 89,928.52 20.20 355,171.48
============= ============= ============= ======= =============
REVENUES OVER/(UNDER) EXPENDITURES 0.00 208,394.56 140,517.93 ( 140,517.93)
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8-01-2024 11:33 AM CITY OF ELK RIVER PAGE: 2
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JULY 31ST, 2024
910-HRA
58.33% OF YEAR COMP.
CURRENT CURRENT YEAR TO DATE % OF BUDGET
REVENUES BUDGET PERIOD ACTUAL BUDGET BALANCE
___________________________________________________________________________________________________________________
HRA
===
Taxes
910-3-0000-3111 Property Taxes 440,100.00 226,116.10 226,116.10 51.38 213,983.90
TOTAL Taxes 440,100.00 226,116.10 226,116.10 51.38 213,983.90
Intergovernmental Rev _____________ _____________ _____________ _______ _____________
Charges for Services _____________ _____________ _____________ _______ _____________
Other Revenue
910-3-0000-3621 Interest Income 5,000.00 0.00 4,330.35 86.61 669.65
TOTAL Other Revenue 5,000.00 0.00 4,330.35 86.61 669.65
Other Financing Sources _____________ _____________ _____________ _______ _____________
Transfers In _____________ _____________ _____________ _______ _____________
_____________________________________________________________________________
TOTAL HRA 445,100.00 226,116.10 230,446.45 51.77 214,653.55
___________________________________________________________________________________________________________________
TOTAL REVENUE 445,100.00 226,116.10 230,446.45 51.77 214,653.55
============= ============= ============= ======= =============
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8-01-2024 11:33 AM CITY OF ELK RIVER PAGE: 3
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JULY 31ST, 2024
910-HRA
Economic Development 58.33% 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 6,302.02 37,812.16 45.78 44,787.84
910-4-6100-4104 PERA 6,200.00 472.65 2,835.90 45.74 3,364.10
910-4-6100-4105 FICA 5,100.00 390.73 2,355.07 46.18 2,744.93
910-4-6100-4107 Medicare 1,200.00 91.38 550.78 45.90 649.22
910-4-6100-4108 Insurance 16,200.00 1,594.80 9,568.80 59.07 6,631.20
910-4-6100-4109 Workers Comp 350.00 98.00 339.75 97.07 10.25
TOTAL Personal Services 111,650.00 8,949.58 53,462.46 47.88 58,187.54
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 8,000.00 324.00 727.00 9.09 7,273.00
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 4,000.00 400.00 400.00 10.00 3,600.00
910-4-6100-4404 Software Services 9,100.00 4,713.36 4,713.36 51.80 4,386.64
910-4-6100-4409 Contractual Services 27,750.00 3,334.60 22,771.80 82.06 4,978.20
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 8,771.96 36,466.06 12.51 254,983.94
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 17,721.54 89,928.52 20.20 355,171.48
___________________________________________________________________________________________________________________
TOTAL Economic Development 445,100.00 17,721.54 89,928.52 20.20 355,171.48
___________________________________________________________________________________________________________________
TOTAL EXPENDITURES 445,100.00 17,721.54 89,928.52 20.20 355,171.48
============= ============= ============= ======= =============
REVENUES OVER/(UNDER) EXPENDITURES 0.00 208,394.56 140,517.93 ( 140,517.93)
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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
6.1
Meeting Date
August 5, 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.
Staff connected with CEE on the issue discussed last month regarding a borrower who overpaid in previous
months and then did not make the April payment. CEE has advised that the borrower had made prior
arrangements to overpay and be credited toward scheduled payments on the amortization schedule. Staff
would like to discuss this with the board relative to program policy and whether the board would like to
consider adjustments to the policy on this issue.
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 Servicing Report
2. Monthly Loan Activity Summary
3. CEE Q2 Loan Summary Report
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CEE Monthly Loan Activity Summary
8/5/24 6.1 at2
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Elk River Loan Summary Report
Activity for Period 4/1/2024 - 6/30/2024
Application packets requested/mailed:Year-to-Date: This period:0 0
Residential Advisor Visits:This period:Year-to-Date: 0 0
Loans currently in process for residents in your City/Neighborhood:6
Closed Loans This period:Year-to-Date:
Elk River UnitsUnits
0 0
Closed End 54,290.00 2 254,290.00
54,290.00 2Total 54,290.00 2
Units UnitsYear-to-Date:This period:Leveraged Funds
CEE 437,116.0027,316.00 2
MHFA FUF 243,422.0043,422.00 2
Total 80,538.00 670,738.00 4
% of Total#Types of Properties Financed YTD
Single Family Residence 100.008
Types of Improvements Financed YTD # of Projects % of Total
Air Conditioning 15.382
Garage 7.691
Heating System 30.774
Plumbing 7.691
Solar-PV 15.382
Thermostat 23.083
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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
6.2
Meeting Date
August 5, 2024
Prepared By
Joshua Mollan, Economic Development Specialist
Item Description
Flower Basket Service Agreement
Reviewed by
Brent O'Neil
Cal Portner
Action Requested
Approve, by motion, an agreement with Yardworx for downtown hanging flower basket placement and
maintenance services.
Background/Discussion
The HRA has been responsible for contracting upkeep services for the downtown hanging flower baskets.
The current agreement with Yardworx, executed in 2021, expires in September. Staff requested quotes for
all-inclusive flower basket services from five commercial landscape and garden center companies in the area
and received one quote, two declines, and two no responses. The bid from Yardworx included options for
one, two, and three years of service, and provided fee reductions based on the length of the term. Based on
the quality of the product, price, and availability, staff recommends continuing services with Yardworx with a
three-year agreement at $20,405.70 per year.
Financial Impact
$20,405.70 annually for three years with a three-year contract, for a total of $61,217.10. $22,750 has been
historically budgeted for this service.
Mission/Policy/Goal
The HRA recognizes the need for appropriate permanent fixtures available for public use to maintain a safe,
clean, and accessible downtown area to preserve the vitality of the business district and prevent the
emergence of blighting conditions.
Attachments
1. Yardworx Public Service Agreement
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AGREEMENT FOR
PROFESSIONAL SERVICES
This Agreement for Professional Services (this “Agreement”), made this ___ day of
August, 2024, by and between the Housing and Redevelopment Authority of the City of Elk River,
a public body corporate and politic under the laws of Minnesota with its principal office located at
13065 Orono Parkway, Elk River, Minnesota 55330 (the “HRA”) and Yardworx Outdoor Services,
LLC, a Minnesota limited liability company with its principal office located at 5392 Quam Ave
NE, St Michael, MN 55376 (“Contractor”).
I. SERVICES TO BE PROVIDED.
Contractor will provide 24 hanging flower baskets for the HRA in the locations noted on
the map attached as Exhibit A for a period of May 15, 2025 – October 15, 2027 with a +/- 15 day
forgiveness dependent on conditions. Contractor shall also be responsible for upkeep of the
baskets as described in its proposal which is attached as Exhibit B. Collectively, the provision of
the baskets and the upkeep as described in the proposal shall be referred to as the “Services”. All
Services provided by Contractor under this Agreement shall be provided in a manner consistent
with the level of care and skill ordinarily exercised by professional contractors currently providing
similar services.
II. COST OF SERVICES.
A. Contractor shall perform the Services outlined in this Agreement and its proposal
at the rates set forth in Exhibit B with an amount not to exceed $61,217.10 for the term of this
Agreement. Contractor shall invoice the HRA on a monthly basis for the Services performed by
Contractor. Payment to Contractor by the HRA shall be due within 30 days of the date of the
invoice.
B. The HRA shall not be responsible for payment for any additional costs or work
performed by Contractor that are outside the scope of this Agreement that are not expressly pre-
approved by the HRA.
III. HRA’S REPONSIBLITIES.
The HRA will grant Contractor access to the properties in which the Services are being
performed during daytime hours Sunday-Saturday (5:00 a.m. – 6:00 p.m. CST), including
holidays. Contractor shall not perform work on Thursday afternoons during the Farmer’s Market.
IV. TERM AND TERMINATION OF AGREEMENT.
The term of this Agreement shall commence on October 1, 2024. Contractor shall
commence performing the Services pursuant to this Agreement on May 15, 2025. This Agreement
shall terminate on October 15, 2027. This Agreement may be terminated earlier by either party by
giving 30 days’ written notice to the other party. Upon termination, Contractor shall be paid by
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the HRA for all Services rendered by Contractor and all other pre-approved costs incurred by
Contractor as of the date of the termination for which Contractor has not yet been compensated.
V. INDEPENDENT CONTRACTOR.
All Services provided pursuant to this Agreement shall be provided by Contractor as an
independent contractor and not as an employee of the HRA for any purpose. Any and all officers,
employees, subcontractors, and agents of Contractor, or any other person engaged by Contractor
in the performance of the Services pursuant to this Agreement, shall not be considered employees
of the HRA. Any and all actions which arise as a consequence of any act or omission on the part
of Contractor, its employees, subcontractors, or agents, or other persons engaged by Contractor in
the performance of Services pursuant to this Agreement, shall not be the obligation or
responsibility of the HRA. Contractor, its employees, subcontractors, or agents shall not be
entitled to any of the rights, privileges, or benefits of the HRA’s employees, except as otherwise
stated in this Agreement.
VI. INDEMNIFICATION.
Contractor, and subcontractors of Contractor, shall indemnify, defend, and hold harmless the
HRA and its officials, employees, contractors and agents from claims, losses, liabilities, and expenses
(including reasonable attorneys’ fees and expenses of litigation) caused by any negligent act or
omission by Contractor, engaged by Contractor in the performance of the Services pursuant to this
Agreement. Likewise, the HRA agrees that it will indemnify, defend, and hold harmless the
Contractor, and its employees, subcontractors, and agents of Contractor against any and all claims,
losses, liabilities, and expenses (including reasonable attorneys’ fees and expenses of litigation),
which the Contractor may hereafter sustain, incur, or be required to pay arising out of the actions of
the HRA pursuant to this Agreement.
VII. INSURANCE.
Contractor agrees to maintain, at its expense, statutory workers’ compensation insurance
coverage. Contractor also agrees to maintain, at its expense, general liability insurance coverage
insuring Contractor against claims for bodily injury, death, or property damage arising out of
Contractor’s general business activities (including automobile use). The liability insurance policy
shall provide coverage for each occurrence in the minimum amount of $1,500,000. Upon request of
the HRA, Contractor shall provide the HRA with certificates of insurance, showing evidence of the
required coverage and listing the HRA as an additional insured.
VIII. MISCELLANEOUS PROVISIONS.
A. Entire Agreement.
This Agreement shall constitute the entire agreement between the HRA and Contractor and
supersedes any other written or oral agreements between the HRA and Contractor. This
Agreement can only be modified in writing signed by the HRA and Contractor. If the terms in this
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Agreement conflict with the terms in the Contractor’s proposal, the terms in this Agreement shall
govern.
B. Data Practices Act Compliance.
Data provided, produced, or obtained under this Agreement shall be administered in
accordance with the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13.
Contractor will immediately report to the HRA any requests from third parties for information
relating to this Agreement. Contractor agrees to promptly respond to inquiries from the HRA
concerning data requests.
C. Choice of Law and Venue.
This Agreement shall be governed by and construed in accordance with the laws of
Minnesota. Any disputes, controversies, or claims arising under this Agreement shall be heard in
the state or federal courts of Minnesota and the parties waive any objections to jurisdiction.
D. No Assignment.
This Agreement may not be assigned by either party.
E. Compliance with Laws.
Contractor shall exercise due professional care to comply with applicable federal, state,
and local laws, rules, ordinances, and regulations in performing the Services under this Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their
duly authorized officials, this Agreement in duplicate on the respective dates indicated below.
HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF ELK
RIVER
By: ____________________________
Dennis Chuba
Its: Chair
By: ____________________________
Brent O’Neil
Its: Executive Director
YARDWORX OUTDOOR SERVICES, LLC
By: ____________________________
Its: ____________________________
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EXHIBIT A
Map of Location of Hanging Baskets
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EXHIBIT B
Contractor’s Proposal
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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
August 5, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Liaison to Downtown Small Area Plan Steering
Committee
Reviewed by
Cal Portner
Action Requested
Designate, by motion, a HRA member to serve on the steering committee for the 2024 Downtown Small
Area Plan.
Background/Discussion
With the selection of Bolton and Menk as the city's2024 Downtown Small Area Plan consultant, an important
component is forming a steering committee to aid in the plan development. The steering committee would
meet regularly, approximately every one to two months, to offer feedback throughout the process. The
committee is proposed to include seven members - one member each from the City Council, the Planning
Commission, the HRA, and the Heritage Preservation Commission, plus two downtown business
representatives, and one at-large community member.
Meeting dates and times will be coordinated based on the availability of the committee members. Staff is
requesting the HRA designate one member as the representative on the steering committee.
Financial Impact
N/A
Mission/Policy/Goal
Support a vibrant downtown.
Attachments
None
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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
6.4
Meeting Date
August 5, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Main and Gates Update
Reviewed by
Cal Portner
Action Requested
Item presented for information and discussion purposes.
Background/Discussion
With the anticipated closing on the property for the Medical on Main project anticipated by early Fall, staff will
provide regular updates on the status of the project as it progresses.
Financial Impact
N/A
Mission/Policy/Goal
The mission of the HRA is to promote certain redevelopment projects.
Attachments
None
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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
6.5
Meeting Date
August 5, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Participation in 19116 Troy Street Acquisition
Reviewed by
Cal Portner
Action Requested
Adopt, by motion, a statement of the board requesting the city to initiate condemnation of 19116 Troy Street
NW and declaring the HRA's intent to participate in the future acquisition of the property in the amount of
$75,000.
Background/Discussion
The property at 19116 Troy Street NW is in a state of significant deterioration and neighborhood nuisance,
and has been a subject of numerous code enforcement actions. The property owner of record is deceased,
and there are no known heirs or parties with an interest in the property. As such, the city is in the
preliminary stages of a condemnation process. The HRA has been approached to collaborate on the
acquisition and restoration of the property, with the HRA leading the clean-up and resale of the property. In
this scenario, the HRA would provide funds to acquire the property and would take possession after
condemnation. It would then mitigate blighted conditions including demolition of structures, and put the
property up for resale for new residential construction.
An appraisal on the property values it at $75,000 in its present condition, and $100,000 under normal
conditions. State statute requires the property be acquired at the appraised value. With potential expenses
for demolition, professional fees, and other potential expenses, staff estimates the additional costs to make
the property suitable for resale to be $30,000 to $60,000.
As multiple steps are still needed from the city prior to the HRA's participation in the project, future action of
the HRA would be needed to commit funds and acquire the property. Following a work session in July,
counsel has advised the HRA to pass a motion declaring its intent to participate in the process.
Financial Impact
Participation in this project is anticipated to require an HRA outlay of $75,000 for acquisition, and total outlay
of $105,000 to $135,000 with the expectation of return proceeds of approximately $100,000 after a resale.
Mission/Policy/Goal
Support blight removal and residential development.
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Attachments
None
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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
6.6
Meeting Date
August 5, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
General Updates
Reviewed by
Cal Portner
Action Requested
Item 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
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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
8.1
Meeting Date
August 5, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
Workshop for 2025 Budget
Reviewed by
Action Requested
Item presented for information and discussion purposes.
Background/Discussion
Staff has prepared a proposed budget for fiscal year 2025. The draft largely reflects a carry forward of 2024
line items and similar projected expenditures for each. Goals and performance measures are largely the same
as well. Staff is looking for feedback on the budget ahead of internal review and presentation to the board for
adoption in September. The adopted budget would be presented to the City Council thereafter for inclusion
in the preliminary levy. A couple points of anticipated discussion will center on funding for property
acquisition as well as for the rehabilitation loan program.
Financial Impact
N/A
Mission/Policy/Goal
Per bylaws, the HRA holds a budget workshop prior to adopting its annual budget.
Attachments
1. HRA first draft budget 2025
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Performance Measures & Goals for 2025
Division:Housing and Redevelopment
Completed by:Brent O'Neil
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
Division Goal Goal Objective/Task
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.
Promote a vital downtown
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.
Enhance redevelopment opportunities for C/I properties
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.
Implement housing and development goals in the new
comprehensive plan
Work in support of the goals and benchmarks set out in the comprehensive plan (approved in 2021), specifically
those in the housing and economic development sections, and coordinate programing to complement the vision of
the plan.
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2025 BUDGET DETAIL
Dept:910-6100 - Housing & Redevelopment Authority
Acct.Explanation/Detail of Supplies or Services 2021 2022 2023 2024 2025
No.Actual Actual Actual BUDGET BUDGET
REVENUES:
3111 Property Taxes 320,897 328,888 398,899 440,100 433,950
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 326,614 333,258 406,786 445,100 438,950
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
Commissioner Pay/Stipend 6,000
TOTAL PERSONAL SERVICES 67,426 83,768 105,406 111,650 123,850
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 12,000
General 2,000 2,000
Studies: Downtown Parking, Housing Update 30,000 10,000
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
8/2/2024
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Lawn/snow removal 4,000 4,000
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 30,000
Elk River HRA Rehab Program Discuss
CEE Administrative Fee 5,000 5,000
Hanging planters/downtown maintenance 22,750 25,000
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 48,499 117,669 291,450 271,550
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 163,991 357,132 264,694 445,100 438,950
^^
REVENUES OVER/(UNDER) EXPENDITURES 162,623 (23,874)142,092 --
Dept:910-6100 - Housing & Redevelopment Authority
Acct.Explanation/Detail of Supplies or Services 2021 2022 2023 2024 2025
No.Actual Actual Actual BUDGET BUDGET
8/2/2024
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