11-04-2024 HRA MIN
Meeting of the Housing and
Redevelopment Authority
Held at the Elk River City Hall
Monday, November 4, 2024
Members Present: Commissioner Dennis Chuba, Commissioner Nate Ovall, Commissioner Lynn
Caswell, Commissioner Mel Beaudry, and Commissioner Jennifer Wagner
Members Absent: None
Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist
Joshua Mollan, and Recording Secretary Jennifer Green
1. CALL MEETING TO ORDER
Pursuant to due call and notice thereof, the meeting was called to order at 5:30 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
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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
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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.
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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.
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Denny Chuba, Chair
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Tina Allard, City Clerk