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09-08-2026 HRA MIN Meeting of the Housing and Redevelopment Authority Held at the Elk River City Hall Tuesday, September 8, 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 Caswell to approve the agenda. Motion carried 5-0. 4. CONSENT AGENDA Moved by Commissioner Klutch and seconded by Commissioner Beaudry to approve the following consent items as outlined in their respective staff reports. Motion carried 5-0. 4.1 DRAFT Minutes - August 3, 2026 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 Housing and Redevelopment Authority Minutes September 8, 2026 --------- Page 2 of 4 6.1 2027 Budget Approval and Levy Recommendation The staff report was presented. Moved by Commissioner Caswell and seconded by Commissioner Klutch to approve Resolution 26-01 adopting the budget for 2027 and recommending $480,200 be included in the 2027 levy. Motion carried 5-0. 6.2 Downtown Furniture Placement The staff report was presented. The large red Adirondack chair will be moved to HRA-owned property. Moved by Commissioner Dietz and seconded by Commissioner Beaudry to approve a memorandum of understanding allowing placement of outdoor furniture at PID: 75-00405- 0235 by the Downtown Elk River Business Association (DERBA) for public use. Motion carried 5-0. 6.3 Housing Rehabilitation Loan Program Update The staff report was presented. There is a new loan for $29,000. Mr. Mollan is working with the Communications team on an ad for the fall home improvement issue of the Star News. Commissioner Beaudry asked if the newspaper ad results in loan inquiries. Mr. Mollan stated that some past loans have come from the newspaper, others from social media posts, or mailers. 7. OPEN DISCUSSION Mr. O'Neil updated the Commission that staff are continuing to monitor the "upper town" area for property acquisition. There was a fire in that area within the last month with minor damage. Mr. Mollan gave 2025 statistics acquired from Placer.ai software regarding residents visiting Elk River and nearby liquor stores. Commissioner Beaudry asked if visitors made purchases or just walked through the door. Mr. Mollan stated the statistics were only those who had walked through the door but he could look into spending habits. Commissioner Beaudry was surprised that there were fewer visitors to the Westbound Liquor store than the Northbound Liquor store. Mr. Mollan stated staff could pull sales data and compare to visits. Commissioner Klutch was curious if the development of the Kwik Trip gas station near the Westbound Liquor store would increase the liquor store traffic. Mr. Mollan stated staff would like to hold a work session regarding Statewide Affordable Housing Aid (SAHA) dollars to discuss future distributions and the agreement with Main Street Family Services. 8. MOTION TO ADJOURN REGULAR MEETING Moved by Commissioner Caswell and seconded by Commissioner Dietz to adjourn the meeting. Motion carried 5-0. The regular meeting adjourned at 5:45 p.m. Chair Ovall called the work session to order at 5:46 p.m. Housing and Redevelopment Authority Minutes September 8, 2026 --------- Page 3 of 4 9. WORK SESSION 9.1 Downtown Hanging Flower Baskets and Fixtures Mr. Mollan stated that, with the construction of the downtown area streets and sidewalks in 2027, staff were considering forgoing the flower baskets on the light poles. He asked the Commission if they would like to continue to work with YardWorx after 2027 and if they had any idea on where to use the funds typically allocated for the baskets. Commissioner Beaudry asked if the HRA did not spend the money in the budget for that item in 2027 could it be available for subsequent years. Mr. Mollan explained that any unused funds would remain part of the HRA's fund balance. Mr. Mollan asked the Commission if they would be interested in spending the funds on holiday or other more permanent fixtures. Mr. O'Neil gave more details regarding the closing of areas of downtown stating that the project could take 45-90 days potentially beginning in late spring 2027. Phasing of the construction has not yet been decided. Commissioner Dietz was in favor of Christmas decorations that could be used year after year but Chair Ovall stated that holiday decor is seasonal and needs to be stored. Chair Ovall asked if permanent fixtures could include items such as a bike rack. Mr. O'Neil added that the Commission could look into amenities for the downtown reconstruction including trash cans. Chair Ovall asked if staff should discuss the extra funds with the Downtown Elk River Business Association (DERBA). Mr. Mollan stated staff has not yet discussed the funds with DERBA. Chair Ovall asked if any of the funding could help downtown businesses affected by construction during the spring and summer. Commissioner Beaudry was in favor of not spending the extra funds until fall 2027 and see where they are needed after construction is finished. Chair Ovall asked about the recommendation from Yardworx. Mr. Mollan stated the company is okay with skipping the 2027 season and offered a three-year contract from 2028-2030 at the current rate of $20,405.70 per year. Chair Ovall asked about getting a re-bid from other companies. He suggested a one-year contract extension with an inflation rider may be an option. The Commission agreed that the hanging planters should be skipped in 2027 and that the conversation on renewing the Yardworx contract should continue. Commissioner Klutch asked for more information on the proposed construction in the downtown area. He asked if the HRA could do anything to help small businesses with the negative impact of the construction. Mr. O'Neil commented that the EDA may have more resources to help small businesses and that there Housing and Redevelopment Authority Minutes September 8, 2026 --------- Page 4 of 4 have been some conversations on delivery, marketing, low-interest loans, and the process of staging the construction to allow more access to the downtown businesses. 9.2 Land Acquisition Opportunity — Mississippi Road The staff report was presented. Mr. O'Neil gave an overview of the "Bodnar property", a 2 acre lot that may be available for sale and development. This lot would be a good potential site for collaboration with Habitat for Humanity and the site could be divided into 4-5 lots. Considerations include looping the water system, coordinating with the county road for access, potential need for a cul-de-sac, and getting a variance to allow narrower lot sizes. Mr. O'Neil stated that SAHA funding could potentially be used for some of the purchase. He stated his goal would be that the HRA did not lose money on this property. Commissioner Caswell asked if there may be a possibility of grants. Mr. O'Neil stated staff could look into grants but he would like to build a purchasing model without using them. Mayor Dietz left at 6:23 p.m. Mr. O'Neil commented if the property owner decides to sell to someone else, the property may still be improved, but different sites would still be needed for Habitat for Humanity builds. 10. MOTION TO ADJOURN Moved by Commissioner Klutch and seconded by Commissioner Beaudry to adjourn the meeting. Motion carried 4-0. The meeting adjourned at 6:24 p.m. Minutes prepared by Katie Porath. ________________ Nate Ovall, Chair ____________________ Justin Dunford, City Clerk