11-30-2021 JFC MIN
Elk River Joint Finance Committee
Held at Elk River City Hall
Tuesday, November 30, 2021
Members Present: Charlie Blesener, Ryan Hardin, Rhonda Magnussen, Dan Tveite, Nate Ovall,
Larry Toth and Jim Gromberg
Members Absent: Chad Vitzthum
Staff Present: Brent O’Neil, Economic Development Director
Others Present: Mikaela Huot, Baker Tilly (via phone conference) and Patrick Briggs, Briggs
Companies
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River Joint Finance
Committee was called to order by Chair Tveite at 7:38 a.m.
2. Consider Agenda
Motion by Blesener and seconded by Gromberg to approve the Joint Finance
Committee agenda. Motion carried 7-0.
3. Consent Agenda
Motion by Hardin and seconded by Ovall to approve the October 26, 2021, Joint
Finance Committee meeting minutes. Motion carried 7-0.
4.1 TIF Application Jackson Hills Second Addition
Mr. O’Neil introduced Mikaela Huot and Patrick Briggs to present on the TIF application
for Jackson Hills II. Mr. Briggs spoke to the site and his vision for the project. Ms. Huot
gave a presentation summarizing the project and her analysis of the request. Ms. Huot
highlighted the qualifications of the project as a Housing TIF district, the use of funds, and
the “but-for” analysis. The analysis indicated soil conditions necessitating remediation are
the major contributor to extraordinary project costs anticipated for the project up to
$850,000. The developer could be reimbursed for those costs over the life of a 15-year TIF.
It also found that the project could not support debt service payments without TIF, and the
debt service coverage ratio and projected returns are under market standards.
Several elements of the project were discussed by the committee. Site layout was confirmed
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to be on the southern portion of the property, immediately across 6 Street from Jackson
Hills I. Mr. Briggs confirmed that approximately six feet of peat, on average, would need to
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be removed and refilled on site. He also indicated that current pavement of 6 Street would
remain, without additional improvements needing to be made.
Ms. Huot was asked about project viability and debt coverage ratios, and she indicated that
the project is feasible with TIF, but project returns and debt coverage ratios are below
prevailing standards.
Mr. Briggs indicated that Jackson I reached stabilization a little slower than expected and
current occupancy is about 90 percent. He also indicated the likely construction schedule
would be summer of 2022.
Mr. Briggs also stated that the project is subject to volatility in the construction market and
he is also looking at other possible programs to strengthen the feasibility of the project.
Motion by Oval and seconded by Blesener to recommend approval of the application
to the Housing and Redevelopment Authority. Motion carried 7-0.
5.1 Announcements
There were no announcements.
6. Adjournment
There being no further business, Mr. Tveite adjourned the meeting at 8:11 a.m.
Minutes prepared by Brent O’Neil.
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Tina Allard
City Clerk
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Brent O’Neil
Economic Development Director