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08-03-2026 HRA MIN Meeting of the Housing and Redevelopment Authority Held at the Elk River City Hall Monday, August 3, 2026 Members Present: Chair Nate Ovall, Commissioner John Dietz, Commissioner Lynn Caswell, Commissioner Mel Beaudry, Commissioner Dave Klutch Members Absent: None. Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist Joshua Mollan, and Recording Secretary Katie Porath 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 Dietz and seconded by Commissioner Beaudry to approve the agenda. Motion carried 5-0. 4. CONSENT AGENDA Moved by Commissioner Caswell and seconded by Commissioner Klutch to approve the following consent items as outlined in their respective staff reports. Motion carried 5-0. 4.1 DRAFT Minutes - July 6, 2026 4.2 Check Register 4.3 Balance Sheet 4.4 Revenue/Expenditure Reports 4.5 Satisfaction of Mortgages - #19-015217 and #19-016564 5. OPEN FORUM No one appeared for open forum. Housing and Redevelopment Authority Minutes August 3, 2026 --------- Page 2 of 4 6. GENERAL BUSINESS 6.1 Presentation - Garden Gem Awards Mr. Mollan presented engraved landscape rocks to the winners of the 2026 Garden Gem Awards in the following categories: Rural - Jill Varty Townhome - Martha Quesenberry Single Family Home built before 2000 - Cassandra Miller Single Family Home built 2000 or later - Paul and Sandy Peterson 6.2 Housing Rehabilitation Loan Program Update Mr. Mollan reviewed that there were no new loans in the latest period. However, he has recently reviewed a new project and it will likely be on the September report. He added that the Center for Energy and Environment (CEE) has closed two loans year-to-date from Elk River residents from HRA's program and MN Housing Fix up Fund. 7. OPEN DISCUSSION Mr. Mollan stated the quarterly report from Main Street Family Services on their Statewide Affordable Housing Aid (SAHA) allocation has shown that $10,470 was issued to 13 different families. Mr. Mollan gave an update on a code enforcement property. Staff has sent a final offer to purchase the property. If there is no response, code enforcement will work to clean up the property. Mr. O'Neil reviewed that the HRA had asked about the liquor buying habits of Elk River residents using the Placer.ai software. He will bring more details to a future meeting. Mr. O'Neil stated that there has been minimal response to the conversations with owners of properties in the "Upper Town" area. One developer has asked about developing apartments in that area but there is currently a moratorium in effect on multi-family housing in Elk River. Mr. O'Neil gave an update on the partnership with Habitat for Humanity. The organization has secured a property in Becker for their first home built at the Elk River high school. There was some challenge finding a suitable property in Elk River to use for the project but staff will continue to work on this for future homes. The Commission could consider putting some funding toward the property cost to lower the cost burden. $20,000 has been earmarked using Statewide Affordable Housing Aid program. Mr. O'Neil asked the Commission to consider if they would like to financially contribute toward any amenities to the downtown area during the main street projects scheduled to begin next year. He will bring the discussion to a future meeting. 8. MOTION TO ADJOURN REGULAR MEETING Moved by Commissioner Klutch and seconded by Commissioner Caswell to adjourn the meeting. Motion Carried 5-0. The regular meeting adjourned at 5:51 p.m. Chair Ovall called the work session to order at 5:54 p.m. Housing and Redevelopment Authority Minutes August 3, 2026 --------- Page 3 of 4 9. WORK SESSION 9.1 2027 Budget Workshop Mr. O'Neil reviewed the budget stating there were no substantial changes and proposing a 2.1% increase. The Commission discussed budgeting money to assist Habitat for Humanity in purchasing property for the houses built at the high school. Chair Ovall asked if staff has networked with cities who have done redevelopment, such as Champlin, and how they acquired properties and financed the redevelopment. Mr. O'Neil stated that he has learned some information from cities that share similar attornies. Chair Ovall would be interested in a rubric to help make decisions on the right mix of cash versus financing. Mr. O'Neil discussed whether the fund balance should be a budget goal or a policy. While he prefers a policy, having it as a budget goal gives the Commission flexibility to adjust it each year as needed. Commissioner Dietz asked if staff has looked into acquiring the remaining residential houses from the railroad tracks to Highway 169 on Main Street. Mr. O'Neil stated there had been some discussion in the past but the board had prioritized using available funds elsewhere, such as areas of downtown, should the opportunity present itself. Mr. O'Neil suggested that, if something comes up for sale on Main Street, it could be paid for from the fund balance rather than budgeting for it. Commissioner Dietz mentioned that the American Legion had talked about being willing to relocate if a good location was available. Commissioner Beaudry asked about the Fire Station #1 location. Mr. O'Neil stated that the property would likely be sold for reuse or redevelopment when the new Station #1 is constructed, and the City Council would make that decision. The Commission was in agreement with the proposed 2.1% increase and the budget will be brought to the September HRA meeting for approval. 10. MOTION TO ADJOURN Moved by Commissioner Beaudry and seconded by Commissioner Caswell to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 6:15 p.m. Minutes prepared by Katie Porath. Housing and Redevelopment Authority Minutes August 3, 2026 --------- Page 4 of 4 ________________ Nate Ovall, Chair ____________________ Justin Dunford, City Clerk