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HRA Packet for January 6, 2025Housing and Redevelopment Authority Regular Meeting & Work Session Agenda Monday, January 6, 2025 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 - November 4, 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 Res. 25-01: Authorizing membership in the Minnesota Municipal Money Market Fund (4M Fund) 6.3 General Updates 7.MOTION TO ADJOURN REGULAR MEETING 8.WORK SESSION 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. Page 1 of 35 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity 8.1 Annual Meeting Discussion Items 8.2 MnDOT Properties at Elk Hills Drive 9.MOTION TO ADJOURN Page 2 of 35 DRAFTMeeting of the Housing and Redevelopment Authority Held at the Elk River City Hall Monday, November 4, 2024 Members Present: Members Absent: Staff Present: Commissioner Dennis Chuba, Commissioner Nate Ovall, Commissioner Lynn Caswell, Commissioner Mel Beaudry, Commissioner Jennifer Wagner None 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 5:30 p.m. 2.PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3.CONSIDER AGENDA Moved by Commissioner Ovall and seconded by Commissioner Beaudry to approve the agenda. Motion Carried 5-0. 4.CONSENT AGENDA Moved by Commissioner Wagner and seconded by Commissioner Ovall to approve the following consent items as outlined in their respective staff reports. Motion Carried 5-0. 4.1 Draft HRA Minutes - October 7, 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 BUSINESS 6.1 Housing Rehabilitation Loan Program Renewal and Update Page 3 of 35 DRAFT Housing and Redevelopment Authority Minutes November 4, 2024 --------- Page 2 of 4 Mr. Mollan presented the staff report. He noted one request was received for a septic system but the property was located outside the urban service district. Moved by Commissioner Caswell and seconded by Commissioner Beaudry to approve, the 2024 loan origination amendment with Minnesota Center for Energy and Environment (CEE). Motion Carried 5-0. 6.2 Request to Use 724 Main St. (Former Meat Market) Mr. O'Neil presented the staff report and introduced representatives from the Downtown Elk River Business Association (DERBA), Melanie Clemmons and Deana McLean.They distributed two exhibits outlining their downtown holiday decorating proposal; the first, a request for string lights over the Christmas tree at Rivers Edge Park. The second request for the HRA to consider was to use the property at 724 Main Street for displaying eight Christmas trees (to be sponsored and decorated by a downtown business) and to place a small gazebo on the north end of the plaza to house the large red adirondack chair. The goal was to further enhance the beauty of the downtown and provide some amenities for the public to enjoy while shopping and dining. The proposed agreement in the staff report was standard language similar to the agreement for the summer picnic tables. Ms. Clemmons and Ms. McLean stated if there were questions or issues, they would be the point of contact, along with parks and recreation staff. The HRA discussed the proposal. Commissioner Ovall stated he likes the spirit of the request. Moved by Commissioner Caswell and seconded by Commissioner Beaudry to approve the Memorandum of Understanding with the Downtown Elk River Business Association (DERBA) allowing the use of the property at 724 Main St during winter. Motion Carried 5- 0. 6.3 General Updates Mr. O'Neil presented the staff report. He stated the closing of Main and Gates properties occurred and earthwork is currently being completed. Mr.O'Neil stated Commissioner Beaudry volunteered to be HRA representative for the the state aid affordable housing program. He stated he will engage with Commissioner Beaudry and bring back the topic at a future HRA meeting. Mr. O'Neil anticipated possibly canceling the December HRA meeting due to a lack of agenda items. Chair Chuba asked what the net proceeds were from the closing. Mr. O'Neil stated the net proceeds were just under $390,000 and will be outlined in a future financial report. 6.4 Presentation on Draft Sherburne County Housing Study Mr. O'Neil introduced Brian Fleming, Economic Development Coordinator for Sherburne County. Mr. Fleming presented a relevant analysis of the draft housing study from Maxfield Research and Consulting, and provided conclusions and suggestions. He stated he would bring back to Maxfield any comments or Page 4 of 35 DRAFT Housing and Redevelopment Authority Minutes November 4, 2024 --------- Page 3 of 4 suggestions from the HRA and will have the final draft available late November or early December. Mr. Fleming presented overall key housing study projects through 2030 for the entirety of Sherburne County: - A need for 5200 new housing units with 2,205 of those units specific to senior housing. - County population expected to rise 10% - 62% of workforce commute out of the county to work - Senior population will continue to grow by 14% - Median rent is $1,053 - Median resale price now $370k - Current lot supply is less than two year supply (3-5 year recommended) Mr. Fleming then presented key points for Elk River city: - Housing stock: 79% owner, 21% rental (1,396 units for rent - getting more detail on what the study units represent) - 530 units of senior housing with 268 units for active adults and 221 units requiring enhanced services Mr. Fleming described the senior housing levels and housing types, from fully independent lifestyle to full/high dependence. He indicated data shows the fixed income seniors 65+ have the highest poverty rate at 9%. After the year 2030 and beyond, what do senior housing needs require based upon current and projected demand? He stated the need for fully dependent housing will grow after 2030. Mr. Fleming then reviewed the total housing projects that are planned/pending in Elk River, with 1312 planned units and 333 approved. Commissioner Caswell asked for more detail regarding this slide; Mr. Fleming stated he will ask Maxfield for more information but thought it was about the number of available units. Mr. Fleming then discussed Elk River's housing affordability and said that new construction costs are higher than existing housing costs and will continue to trend higher. Housing demand for Elk River is highest county-wide with 498 new homes and 214 multi-family homes projected by 2030. At 5:59 p.m., Commissioner Wagner, along with Mr. O'Neil and Mr. Mollan, left for a closed EDA meeting. Mr. Fleming concluded the presentation with the following Elk River recommendations: - New platted lots are a critical need (only a 2-year supply, with 3-5 year supply recommended) - Development of entry-level homes may require a private-public partnership or other incentives to stimulate lower-priced new home construction - Growing need to produce patio-style homes, or one-level and/or ground level main bedroom homes (both single and multi-family housing) - Strong need for market rate and affordable/subsidized rental housing - Senior housing (independent living) is a strong need. Commissioner Caswell asked about the slide with the numbers of senior units that were existing for Elk River, and was surprised at the number of 530. He felt that figure would have been higher. Mr. Fleming stated he would ask the consultants and get an official answer, but it could mean it is specific to age 55 and above. Commissioner Beaudry asked Mr. Fleming if there was anything alarming or surprising about the study results. Page 5 of 35 DRAFT Housing and Redevelopment Authority Minutes November 4, 2024 --------- Page 4 of 4 Mr. Fleming stated nothing surprising or alarming, but rather seeing the data is a more helpful, informative guidance for Sherburne County and Elk River to aid in prioritizing developers. He stated this study will be valuable as it shows what the needs will be. He stated the benefit of building more patio and one-level homes is they provide living options for up and coming seniors to sell their single family style homes for the next younger buyer. This information also supports a more affordable opportunity by purchasing an already built home, which will be cheaper than building a new home according to the data. Chair Chuba asked about urban service properties versus lots with private wells and septic septics and if the information shows any need versus what should be available. Mr. Fleming indicated the data shows in rural markets there are less rental properties, and the standard rural lot sizes are 2.5 acres; the suggestion would be to drop those lot sizes to 1 acre to offer more active adult housing in rural areas. Commissioner Ovall asked about the multi-family housing increase in adjoining cities (Ramsey, Otsego) and if that has an effect on Sherburne County projections. Mr. Fleming stated that question is a good follow-up question for Maxfield. He stated it seems like this study may have been done in isolation of surrounding cities and will ask if Maxfield considered the surrounding areas in these projections. 7. MOTION TO ADJOURN REGULAR MEETING Moved by Commissioner Ovall and seconded by Commissioner Caswell to adjourn the meeting. Motion carried 4-0. The meeting adjourned at 6:10 p.m. Minutes prepared by Jennifer Green. _________________ Denny Chuba, Chair ___________________ Tina Allard, City Clerk Page 6 of 35 CITY OF ELK RIVER Check Register - By Bank Page: 1 Check Issue Dates: 11/6/2024 - 1/31/2025 Jan 02, 2025 04:32PM Report Criteria: Report type: Invoice detail Check.Type = {<>} "Adjustment" Bank.Bank number = 3 GL Check Check Vendor Invoice Invoice Discount Invoice Check Bank Number Period Issue Date Number Number Payee Number GL Account Taken Amount Amount 2309 12/24 12/02/2024 2309 8001 CAMPBELL KNUTSON P.A. 3273 10-31-24 910-4-6100-4304 .00 36.00 36.00 3 Total 2309: .00 36.00 2310 12/24 12/02/2024 2310 23007 KENNEDY & GRAVEN CHARTERED 184416 - HRA 910-4-6100-4304 .00 1,990.50 1,990.50 3 12/24 12/02/2024 2310 23007 KENNEDY & GRAVEN CHARTERED 184872 HRA 910-4-6100-4304 .00 692.50 692.50 3 Total 2310: .00 2,683.00 Grand Totals: .00 2,719.00 Summary by General Ledger Account Number GL Account Debit Credit Proof 910-2020 .00 2,719.00- 2,719.00- 910-4-6100-4304 2,719.00 .00 2,719.00 Grand Totals: 2,719.00 2,719.00- .00 M = Manual Check, V = Void Check Page 7 of 35 CITY OF ELK RIVER Unpaid Invoice Report - HRA Page: 1 Posting period: 01/25 Jan 02, 2025 04:24PM Report Criteria: Invoice Detail.GL account = {>=} "910" Invoice Detail.GL account = {<=} "920" Invoice Sequence Description Type Invoice Due Invoice Net Invoice GL Account Number Number Date Date Amount Check Amount Number CITY OF ELK RIVER 910 HRA 10-2024 1 HRA SALARIES - OCT 24 Invoice 12/30/2024 12/31/2024 6,396.85 6,396.85 910-4-6100-4101 HRA 11-2024 1 HRA SALARIES - NOV 2024 Invoice 12/30/2024 12/31/2024 6,396.86 6,396.86 910-4-6100-4101 HRA 12-2024 1 HRA SALARIES - DEC 24 Invoice 12/30/2024 12/31/2024 6,396.86 6,396.86 910-4-6100-4101 HRA 10-2024 2 HRA SALARIES - OCT 24 Invoice 12/30/2024 12/31/2024 479.76 479.76 910-4-6100-4104 HRA 11-2024 2 HRA SALARIES - NOV 2024 Invoice 12/30/2024 12/31/2024 479.76 479.76 910-4-6100-4104 HRA 12-2024 2 HRA SALARIES - DEC 24 Invoice 12/30/2024 12/31/2024 479.76 479.76 910-4-6100-4104 HRA 10-2024 3 HRA SALARIES - OCT 24 Invoice 12/30/2024 12/31/2024 396.60 396.60 910-4-6100-4105 HRA 11-2024 3 HRA SALARIES - NOV 2024 Invoice 12/30/2024 12/31/2024 396.61 396.61 910-4-6100-4105 HRA 12-2024 3 HRA SALARIES - DEC 24 Invoice 12/30/2024 12/31/2024 396.61 396.61 910-4-6100-4105 HRA 10-2024 4 HRA SALARIES - OCT 24 Invoice 12/30/2024 12/31/2024 92.75 92.75 910-4-6100-4107 HRA 11-2024 4 HRA SALARIES - NOV 2024 Invoice 12/30/2024 12/31/2024 92.75 92.75 910-4-6100-4107 HRA 12-2024 4 HRA SALARIES - DEC 24 Invoice 12/30/2024 12/31/2024 92.75 92.75 910-4-6100-4107 HRA 10-2024 5 HRA SALARIES - OCT 24 Invoice 12/30/2024 12/31/2024 1,594.80 1,594.80 910-4-6100-4108 HRA 11-2024 5 HRA SALARIES - NOV 2024 Invoice 12/30/2024 12/31/2024 1,594.80 1,594.80 910-4-6100-4108 HRA 12-2024 5 HRA SALARIES - DEC 24 Invoice 12/30/2024 12/31/2024 1,594.80 1,594.80 910-4-6100-4108 HRA 11-2024 6 REIMB W/C - OCT/DEC 24 Invoice 12/30/2024 12/31/2024 87.00 87.00 910-4-6100-4109 Total 17440 CITY OF ELK RIVER: 26,969.32 26,969.32 Total 910: 26,969.32 26,969.32 Total : 26,969.32 26,969.32 Grand Totals: 26,969.32 26,969.32 Summary by General Ledger Account Number GL Account Number Debit Credit Net 910-4-6100-4101 19,190.57 .00 19,190.57 910-4-6100-4104 1,439.28 .00 1,439.28 910-4-6100-4105 1,189.82 .00 1,189.82 910-4-6100-4107 278.25 .00 278.25 910-4-6100-4108 4,784.40 .00 4,784.40 910-4-6100-4109 87.00 .00 87.00 Grand Totals: 26,969.32 .00 26,969.32 Summary by General Ledger Posting Period GL Posting Period Debit Credit Net 12/24 26,969.32 .00 26,969.32 Page 8 of 35 CITY OF ELK RIVER BALANCE SHEET NOVEMBER 30, 2024 FUND 910 - HRA ASSETS 910-1000 CASH - HRA 1,235,408.91 910-1010 HRA FUND CASH 7,128.02 910-1190 LOANS RECEIVABLE 198,758.40 910-1193 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 157,254.48 TOTAL ASSETS 1,998,549.81 LIABILITIES AND EQUITY FUND EQUITY 910-2400 FUND BALANCE 1,924,693.80 REVENUES OVER EXPENDITURES - YTD 73,856.01 TOTAL FUND EQUITY 1,998,549.81 TOTAL LIABILITIES & EQUITY 1,998,549.81 Page 9 of 35 CITY OF ELK RIVER BALANCE SHEET DECEMBER 31, 2024 FUND 910 - HRA ASSETS 910-1000 CASH - HRA 1,237,233.96 910-1010 HRA FUND CASH 211,160.61 910-1190 LOANS RECEIVABLE 198,758.40 910-1193 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 152,710.43 TOTAL ASSETS 2,199,863.40 LIABILITIES AND EQUITY FUND EQUITY 910-2400 FUND BALANCE 1,924,693.80 REVENUES OVER EXPENDITURES - YTD 275,169.60 TOTAL FUND EQUITY 2,199,863.40 TOTAL LIABILITIES & EQUITY 2,199,863.40 Page 10 of 35 CITY OF ELK RIVER REVENUES WITH COMPARISON TO BUDGET FOR THE 11 MONTHS ENDING NOVEMBER 30, 2024 HRA PERIOD ACTUAL YTD ACTUAL BUDGET UNEARNED PCNT FOR ADMINISTRATION USE ONLY 92 % OF THE FISCAL YEAR HAS ELAPSED 01/03/2025 09:08AM PAGE: 1 DEPARTMENT 0000 910-3-0000-3111 PROPERTY TAXES .00 226,137.69 440,100.00 213,962.31 51.4 910-3-0000-3322 MV CREDIT .00 107.59 .00 ( 107.59) .0 910-3-0000-3621 INTEREST INCOME 577.92 9,668.66 5,000.00 ( 4,668.66) 193.4 910-3-0000-3629 MISCELLANEOUS REVENUE .00 5,945.00 .00 ( 5,945.00) .0 TOTAL DEPARTMENT 0000 577.92 241,858.94 445,100.00 203,241.06 54.3 TOTAL FUND REVENUE 577.92 241,858.94 445,100.00 203,241.06 54.3 Page 11 of 35 CITY OF ELK RIVER EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 11 MONTHS ENDING NOVEMBER 30, 2024 HRA PERIOD ACTUAL YTD ACTUAL BUDGET UNEXPENDED PCNT FOR ADMINISTRATION USE ONLY 92 % OF THE FISCAL YEAR HAS ELAPSED 01/03/2025 09:08AM PAGE: 2 HOUSING & DEVELOPMENT 910-4-6100-4101 REGULAR PAY .00 60,180.43 82,600.00 22,419.57 72.9 910-4-6100-4104 PERA .00 4,513.52 6,200.00 1,686.48 72.8 910-4-6100-4105 FICA .00 3,741.91 5,100.00 1,358.09 73.4 910-4-6100-4107 MEDICARE .00 875.11 1,200.00 324.89 72.9 910-4-6100-4108 INSURANCE .00 14,353.20 16,200.00 1,846.80 88.6 910-4-6100-4109 WORKERS COMP .00 339.75 350.00 10.25 97.1 910-4-6100-4219 OPERATING SUPPLIES .00 2.65 500.00 497.35 .5 910-4-6100-4304 LEGAL FEES 585.00 1,532.00 8,000.00 6,468.00 19.2 910-4-6100-4319 PROFESSIONAL SERVICES .00 800.00 32,000.00 31,200.00 2.5 910-4-6100-4322 POSTAGE .00 10.69 50.00 39.31 21.4 910-4-6100-4331 TRAVEL, CONFERENCES & SCHOOLS .00 .00 200.00 200.00 .0 910-4-6100-4349 ADVERTISING/MARKETING .00 7,525.91 9,200.00 1,674.09 81.8 910-4-6100-4359 PUBLISHING .00 77.40 350.00 272.60 22.1 910-4-6100-4401 BLDG REPAIR/MAINT SERVICES .00 2,000.00 4,000.00 2,000.00 50.0 910-4-6100-4404 SOFTWARE SERVICES .00 4,713.36 9,100.00 4,386.64 51.8 910-4-6100-4409 CONTRACTUAL SERVICES 66.00 29,837.00 27,750.00 ( 2,087.00) 107.5 910-4-6100-4433 DUES & SUBSCRIPTIONS .00 .00 800.00 800.00 .0 910-4-6100-4440 MISCELLANEOUS .00 .00 200,000.00 200,000.00 .0 910-4-6100-4721 TRANSFER-GENERAL FUND .00 37,500.00 37,500.00 .00 100.0 910-4-6100-4735 TRANSFER-EDA .00 .00 4,000.00 4,000.00 .0 TOTAL HOUSING & DEVELOPMENT 651.00 168,002.93 445,100.00 277,097.07 37.7 TOTAL FUND EXPENDITURES 651.00 168,002.93 445,100.00 277,097.07 37.7 NET REVENUE OVER EXPENDITURES ( 73.08) 73,856.01 .00 ( 73,856.01) .0 Page 12 of 35 CITY OF ELK RIVER REVENUES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING DECEMBER 31, 2024 HRA PERIOD ACTUAL YTD ACTUAL BUDGET UNEARNED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 01/03/2025 09:11AM PAGE: 1 DEPARTMENT 0000 910-3-0000-3111 PROPERTY TAXES 203,925.00 430,062.69 440,100.00 10,037.31 97.7 910-3-0000-3322 MV CREDIT 107.59 215.18 .00 ( 215.18) .0 910-3-0000-3621 INTEREST INCOME .00 9,668.66 5,000.00 ( 4,668.66) 193.4 910-3-0000-3629 MISCELLANEOUS REVENUE .00 5,945.00 .00 ( 5,945.00) .0 TOTAL DEPARTMENT 0000 204,032.59 445,891.53 445,100.00 ( 791.53) 100.2 TOTAL FUND REVENUE 204,032.59 445,891.53 445,100.00 ( 791.53) 100.2 Page 13 of 35 CITY OF ELK RIVER EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING DECEMBER 31, 2024 HRA PERIOD ACTUAL YTD ACTUAL BUDGET UNEXPENDED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 01/03/2025 09:11AM PAGE: 2 HOUSING & DEVELOPMENT 910-4-6100-4101 REGULAR PAY .00 60,180.43 82,600.00 22,419.57 72.9 910-4-6100-4104 PERA .00 4,513.52 6,200.00 1,686.48 72.8 910-4-6100-4105 FICA .00 3,741.91 5,100.00 1,358.09 73.4 910-4-6100-4107 MEDICARE .00 875.11 1,200.00 324.89 72.9 910-4-6100-4108 INSURANCE .00 14,353.20 16,200.00 1,846.80 88.6 910-4-6100-4109 WORKERS COMP .00 339.75 350.00 10.25 97.1 910-4-6100-4219 OPERATING SUPPLIES .00 2.65 500.00 497.35 .5 910-4-6100-4304 LEGAL FEES 2,719.00 4,251.00 8,000.00 3,749.00 53.1 910-4-6100-4319 PROFESSIONAL SERVICES .00 800.00 32,000.00 31,200.00 2.5 910-4-6100-4322 POSTAGE .00 10.69 50.00 39.31 21.4 910-4-6100-4331 TRAVEL, CONFERENCES & SCHOOLS .00 .00 200.00 200.00 .0 910-4-6100-4349 ADVERTISING/MARKETING .00 7,525.91 9,200.00 1,674.09 81.8 910-4-6100-4359 PUBLISHING .00 77.40 350.00 272.60 22.1 910-4-6100-4401 BLDG REPAIR/MAINT SERVICES .00 2,000.00 4,000.00 2,000.00 50.0 910-4-6100-4404 SOFTWARE SERVICES .00 4,713.36 9,100.00 4,386.64 51.8 910-4-6100-4409 CONTRACTUAL SERVICES .00 29,837.00 27,750.00 ( 2,087.00) 107.5 910-4-6100-4433 DUES & SUBSCRIPTIONS .00 .00 800.00 800.00 .0 910-4-6100-4440 MISCELLANEOUS .00 .00 200,000.00 200,000.00 .0 910-4-6100-4721 TRANSFER-GENERAL FUND .00 37,500.00 37,500.00 .00 100.0 910-4-6100-4735 TRANSFER-EDA .00 .00 4,000.00 4,000.00 .0 TOTAL HOUSING & DEVELOPMENT 2,719.00 170,721.93 445,100.00 274,378.07 38.4 TOTAL FUND EXPENDITURES 2,719.00 170,721.93 445,100.00 274,378.07 38.4 NET REVENUE OVER EXPENDITURES 201,313.59 275,169.60 .00 ( 275,169.60) .0 Page 14 of 35 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 January 6, 2025 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. There have been no new loans issued this period and $150,000 is available for new loan disbursements in 2025. 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. CEE Monthly Loan Activity Summary Page 15 of 35 Page 16 of 35 Page 17 of 35 Page 18 of 35 Page 19 of 35 Page 20 of 35 Page 21 of 35 Page 22 of 35 Page 23 of 35 Page 24 of 35 Page 25 of 35 Page 26 of 35 Page 27 of 35 Page 28 of 35 CEE Monthly Loan Activity Summary 1/6/25 Page 29 of 35 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 January 6, 2025 Prepared By Lori Stich, Finance Manager Item Description Res. 25-01: Authorizing membership in the Minnesota Municipal Money Market Fund (4M Fund) Reviewed by Brent O'Neil Cal Portner Action Requested Approve, by motion, Resolution 25-01, membership in the Minnesota Municipal Money Market Fund (4M Fund). Background/Discussion The 4M Fund was formed in 1987, pursuant to the Joint Powers Act and in accordance with Minnesota Investment Statutes, authorizing municipalities of the State of Minnesota to become participants of the Fund. Participation in the Fund is for the purpose of joint investment with other municipalities so as to enhance the investment earnings to the HRA and yet maintain liquidity of HRA monies. Currently, the HRA is yielding interest at a rate of 0.60% on its idle monies with the 4M Fund is at 4.6%. The 4M Fund is an approved depository and this is simply necessary to use the Fund. The City has used the 4M Fund since 1987. Financial Impact Once the resolution is approved, participation in the 4M Fund will allow for increased investment earnings on HRA monies for liquid funds. Mission/Policy/Goal Responsible for every dollar - good stewards Attachments 1. 4.5. HRSR 01-06-2025 resolution Page 30 of 35 City of Elk River Housing and Redevelopment Authority Resolution 25-01 A Resolution Authorizing Membership in the 4M Fund WHEREAS, Minnesota Statutes (the Joint Powers Act) provides that governmental units may jointly exercise any power common to the contracting parties; and WHEREAS, the Minnesota Municipal Money Market Fund (the 4M Fund) was formed in 1987, pursuant to the Joint Powers Act and in accordance with Minnesota Investment Statutes, by the adoption of a joint powers agreement in the form of a Declaration of Trust; and WHEREAS, the Declaration of Trust, which has been presented to this Council, authorizes municipalities of the State of Minnesota to become Participants of the Fund and make use from time to time including the 4M Liquid Asset Class, the 4M Plus Class, the Term Series, the 4M Limited Term Duration Fund, the Fixed Rate Programs, and other Fund services offered by the Fund; and WHEREAS, this Council deems it to be in the best interest for the municipality to make use of, from time to time, the approved services provided by the 4M Fund’s service providers including the Investment Advisor (PMA Asset Management, LLC), the Administrator (PMA Financial Network , LLC), the Distributor (PMA Securities, LLC) or the Fixed Rate Program Providers, PMA Financial Network, LLC and PMA Securities, LLC and the Custodian, U.S. Bank National Association, (“Service Providers”) and/or their successors. WHEREAS, this Council deems it advisable for this municipality to enter into the Declaration of Trust and become a Participant of the Fund for the purpose of joint investment with other municipalities so as to enhance the investment earnings accruing to each; now, therefore, BE IT RESOLVED AS FOLLOWS: Section 1. This municipality shall become a Participant of the Fund and adopt and enter into the Declaration of Trust, a copy of which shall be filed in the minutes of this meeting. The appropriate officials are hereby authorized to execute those documents necessary to effectuate entry into the Declaration of Trust and the participation of all Fund programs. Section 2. This municipality is authorized to invest monies from time to time and to withdraw such monies from time to time in accordance with the provisions of the Page 31 of 35 Declaration of Trust. The following officers of the municipality or their successors are designated as "Authorized Officials" with authority to effectuate investments and withdrawals in accordance with the Declaration of Trust: Lori Stich Finance Manager Print Name Title Signature Jill Knutson Accountant Print Name Title (Additional names may be added on a separate list. The treasurer shall advise the Fund of any changes in Authorized Officials in accordance with Fund procedures.) Section 3. The Trustees of the Fund are designated as having official custody of those monies invested in accordance with the Declaration of Trust. Section 4. That the municipality may open depository and other accounts, enter into wire transfer agreements, safekeeping agreements, third party surety agreements securing deposits, collateral agreements, letters of credit, lockbox agreements, or other applicable or related documents with institutions participating in Fund programs including U.S. Bank National Association, or its successor, or programs of PMA Financial Network, LLC or P:t\1A Securities, LLC for the purpose of transaction clearing and safekeeping, or the purchase of certificates of deposit ("CDs") or other deposit products and that these institutions shall be deemed eligible depositories for the municipality. PMA Financial Network, LLC and PMA Securities, LLC and their successors are authorized to act on behalf of this municipality as its agent with respect to such accounts and agreements. Monies of this entity may be deposited in such depositories, from time to time in the discretion of the Authorized Officials, pursuant to the Fund's Programs available through its Services Providers. Passed and adopted this 6th day of January 2025. ATTEST: Brent O'Neil, Executive Director Dennis Chuba, President Page 32 of 35 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 January 6, 2025 Prepared By Brent O'Neil, Economic Development Director Item Description General Updates Reviewed by Brent O'Neil 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 goal of the HRA is to promote certain housing and redevelopment projects. Attachments None Page 33 of 35 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 January 6, 2025 Prepared By Brent O'Neil, Economic Development Director Item Description Annual Meeting Discussion Items Reviewed by Brent O'Neil Cal Portner Action Requested This item is presented for information and discussion purposes. Background/Discussion The HRA's annual meeting is scheduled for February 3, 2025. Among the items for that meeting are the election of officers, setting committee assignments, reviewing the bylaws, and enabling resolution. This item is included in the January meeting to guide anticipated action items at the annual meeting. Financial Impact N/A Mission/Policy/Goal The goal of the HRA is to promote certain housing and redevelopment projects. Attachments None Page 34 of 35 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 January 6, 2025 Prepared By Brent O'Neil, Economic Development Director Item Description MnDOT Properties at Elk Hills Drive Reviewed by Brent O'Neil Cal Portner Action Requested This item is presented for information and discussion. Background/Discussion MnDOT owns two properties at the intersection of Elk Hills Drive and Dodge Avenue. They were used for staging during the 169 Redefine project and MnDOT has indicated it may be interested in selling both properties. The HRA may have a role in facilitating redevelopment of the sites, whether as promoting the sale and redevelopment to a private entity or potentially pursuing its own purchase of the properties to accelerate development. The Comprehensive Plan guides the properties for residential uses. Financial Impact N/A Mission/Policy/Goal The goal of the HRA is to promote certain housing and redevelopment projects. Attachments None Page 35 of 35