3.0 HRSR 04-07-2008of
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MEMORANDUM
TO: Mayor & City Council
Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: April 7, 2008
SUBJECT: Joint Work Session Discussion Regarding Future Work Projects
Attachments
• December 3, 2007 Staff Report to HRA re: Goals & Projects for 2008
• December 3, 2007 HRA Meeting Minutes
Issues for Discussion
At its December 2007 meeting the HRA indicated interest in holding a future work session
with the City Council to discuss future goals, projects and direction. A copy of the staff
report outlining the 2008 Proposed HRA Goals and Projects is attached as a starting point
for discussion.
The HRA requests the City Council's direction on goals and projects as it relates to
addressing the housing and redevelopment needs in the city.
City
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MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: December 3, 2007
SUBJECT: Discuss HRA Goals and Projects for 2008
Attachments
• City Council Meeting Minutes -November 13, 2007
Issues for Discussion
Staff requests the HRA's feedback and direction on the priority goals and projects for 2008.
The attached minutes from the November 13, 2007 City Council meeting indicates the input
that Councilmember Motin recently received with regard to direction on HRA projects.
Following is a preliminary list of goals and projects for HRA discussion:
2007 HRA Projects
• Initiated strategic planning process for a comprehensive Downtown Redevelopment
Plan.
• Provided consistent communications to the public during the construction of the
MetroPlains Downtown Revitalization project and related projects downtown,
including coordination of Downtown Parking Focus Group and recommendations.
2008 Proposed HRA Goals and Projects
• Coordinate completion of an Elk River Housing Market Study to be used to identify
issues and gaps in current and future housing inventory.
• Explore need and partnership opportunities for housing rehabilitation programs.
• Explore need and partnership opportunities for a selective housing redevelopment
program (voluntary acquisition/removal and replacement of blighted homes).
• Resume planning process for the comprehensive Downtown Redevelopment Plan
(following completion of Highway 10 Geometrics Study)
MEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 3, 2007
Members Present: Chair Wilson, Commissioners Kuester, Toth and Motin
Members Absent: Commissioner Lieser
Staff Present: City Administrator Lori Johnson, Director of Economic Development
Catherine Mehelich
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Housing and
Redevelopment Authority was called to order at 5:30 p.m. by Chair Wilson.
Consider December 3. 2007 HRA Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER TOTH TO APPROVE THE DECEMBER 3, 2007, HRA
AGENDA WITH THE FOLLOWING ADDITIONS:
7.1. -UPDATE ON DOWNTOWN REDEVELOPMENT PROJECT
7.2. -UPDATE ON ASSISTANT DIRECTOR OF ECONOMIC DEVELOPMENT
POSITION
MOTION CARRIED 4-0.
Consider Consent Agenda
Commissioner Toth had a question regarding the 2007 property taxes for the 716 Main
Street property. Ms. Mehelich stated that she would research the issue and report back to
the HRA.
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
MOTIN TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1. NOVEMBER 5, 2007 REGULAR MEETING MINUTES
3.2. CHECK REGISTERS DATED 11/2/07,11/16/07, AND 11/30/07
3.3. BALANCE SHEET -OCTOBER 2007
3.4. REVENUE/EXPENDITURE REPORT -OCTOBER 2007
MOTION CARRIED 4-0.
4. Oben Mike
There was no one present for Open Mike.
IJIk River Housing & Redevelopment Authority Minutes Page 2
llcccmber 3, 2007
Consider Lease Agreement with Elk River Area Arts Alliance for 716 Main Street
Ms. Mehelich explained that the lease agreement for the use of the 716 Main Street building
has been reviewed and generally accepted by Patrick Grace, Executive Director of the Elk
River Area Arts Alliance (ERAAA), subject to approval by its board of directors. She noted
that the Arts Alliance has requested that the lease term start December 15, 2007, so that they
may begin making some improvements in the building. She requested that the HRA accept
and approve the lease agreement as proposed.
Commissioner Motin stated that the lease term was incorrectly stated in the memo to the
HRA as ending in 2010 and should be 2009.
Chair Wilson asked how much the taxes were on the 716 Main Street property. Ms.
Mehelich stated the taxes were $8,000 in 2007, and that there will be no tax in 2008, since
the property is now tax exempt.
Commissioner Toth stated that there is a discrepancy in the rent and asked if it was $1.00 a
year or $1.00 for the term of the lease. Ms. Mehelich stated that it is $1.00 for the term of
the lease to keep it simple.
Commissioner Kuester asked if the HRA was responsible for the taxes for the entire 2007
year. Ms. Mehelich stated she would check to see how the agreement was negotiated with
the Houltons.
Commissioner Motin stated that he continues to have concerns with the city leasing property
for $1.00, but that in this situation, they have no other use for the property at this time.
MOTION BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO MOVE APPROVAL OF THE LEASE
AGREEMENT WITH THE ELK RIVER AREA ARTS ALLIANCE AS
DISCUSSED. MOTION CARRIED 4-0.
Discuss HRA Goals and Projects for 2008
Ms. Mehelich reviewed the proposed list of goals and projects for 2007 for the HRA as listed
in the staff report dated December 3, 2007.
Commissioner Kuester asked when the geometric study is expected to be completed.
Commissioner Motin stated that it will be completed by June or July of 2008.
Discussion followed regarding the housing study, and housing redevelopment and
rehabilitation programs. Ms. Mehelich provided an explanation of how the Small Cites
Grant program works and the fact that it is very competitive. She noted that a portion of
funding was provided for the Jackson Place project, and that there are income eligibility
standards which need to be met. She explained that 70 - 100 applications are received by
the State and the program funds approximately 40 of them. Applications are made annually
in October with funding received in March of the following year. Ms. Mehelich stated that
she felt this program is a good tool for the HRA to pursue. Chair Wilson felt that this
topic warranted a workshop session.
It was the consensus of the HRA to preliminarily accept the list of goals and projects as
proposed for further discussion at a future workshop session.
Elk River Housing & Redevelopment Authority Minutes Page 3
December 3, 2007
7.1. Update on Downtown Redevelopment Project
Chair Wilson stated that it is his understanding that the principal mortgage holder, MnWest
Bank is having some difficulty with the Bluff project. He explained that the City has a
development agreement for the project but that the agreement is not jeopardized by what is
going on. City Administrator Lori Johnson stated that the city has no financial exposure and
that the developer is not in default of their agreement with the city. Chair Wilson stated that
the issue is a result of what is happening with the real estate market.
Commissioner Motin stated that the Jackson Square building is filled. He noted that that the
real estate market is being impacted by delinquencies and foreclosures.
Commissioner Toth asked if there is any concern with MetroPlains. Ms. Johnson stated that
she is not aware of any problem. She stated that the city will do everything it can to help the
project be successful, but that most of what is going on is out of their control. She noted
that these transactions are private business deals.
7.2. Assistant Director of Economic Development
Ms. Mehelich stated that she will be requesting that the City Council authorize staff to fill
this position within the next three months. She noted that this position deals with business
retention, micro loan programs, and provide administrative support to the HRA.
Chair Wilson asked when the Community Development Director position will be filled. Ms.
Johnson stated that she anticipated it would be filled in the next few months. Commissioner
Motin stated that they want to take the time to hire the right person for the job, and
therefore, are not in a hurry to fill the position.
8. Adjournment
There being no other business, Chair Wilson adjourned the meeting of the Elk River
Housing and Redevelopment Authority adjourned at 5:59 p.m.
Minutes prepared by Debbie Huebner.
Tina Allard
Ciry Clerk
City Council Minutes
November 13, 2007
5.4. Black Dirt Ordinance
Page 4
Elk River Municipal Utilities General Manager Bryan Adams presented a PowerPoint
outlining monthly water usage and statistics in Elk River. Mr. Adams also explained Elk
River's water source. He stated that on an annual basis, lawn irrigation accounts for
approximately 45% of Elk River's water use. He explained that the DNR is urging
communities to implement water conservation programs and reducing lawn irrigation is one
of them. He stated that surrounding communities were surveyed and a majority have a black
dirt policy in place. Mr. Adams indicated that the Utilities Commission is recommending the
City Council adopt a black dirt ordinance in order to foster water conservation. He
recommended the ordinance contain the following four principles:
1. 4" of black dirt shall be tilled into the top approximate 8" of existing soil
2. 4' of black dirt shall have the approximate following make-up by volume:
^ 61% sand
^ 12% clay
^ 12% silt
^ 15% organic
3. areas that naturally contain this approximate soil make-up shall be classified as meeting
the black dirt policy
4. inspection as part of the certificate of occupancy process by building inspections
Councilmember Motin questioned if the ordinance would apply to existing lots or only new
lots. Mr. Adams indicated that the recommendation is for the ordinance to govern all new,
urban lots.
Councilmember Gumphrey stated that Elk River is Energy City and this would be an
excellent opportunity fox a conservation effort. Ms. Johnson indicated that staff agrees with
implementing conservation efforts but has concerns regarding enforcement.
Mayor Klinzing indicated that she believes it is worth a try and she would like to be
consistent with surrounding communities and require 4" of black dirt.
Councilmember Motin questioned how acreage lots in urban districts will be handled. Mr.
Adams indicated that staff will need to review that and added that it may depend on how
much lawn the homeowner intends to mow.
It was the consensus of the Council for Mx. Adams to draft a black dirt ordinance to be
brought back for Council approval.
/ ~ 5.5. HRA Projects from City Council
Ms. Johnson explained that Councilmember Moon is requesting input from the Council on
any projects they would like to see brought back to the HRA.
Councilmember Motin indicated that the HRA will be working on the housing study in 2008
but has an otherwise light schedule.
City Council Minutes
November 13, 2007
Page 5
Councilmember Farber stated that there are certain houses that are eye sores that tend to
come up for sale often. He questioned if there is a way fox the HRA to purchase the houses,
tear them down and have something else built in its place. Mayor Klinzing indicated that
there used to be a resident in town that provided that service but not any longer. She stated
that funding to purchase the homes is an issue. She questioned if small cities giants are
available. Ms. Johnson indicated that the city has not applied for the small cities grant in
quite some time but that she will have Director of Economic Development Catherine
Mehelich check into options.
5.6. Toint County Board Discussion Items
The following items were suggested additions to the joint County Board agenda:
^ Fairgrounds
^ Transportation
^ Government Center property
^ Landfill
^ Legacy Grant
^ Northstar Corridor (public transit)
^ Communication Issues (notification to cities)
5.7. Council Open Forum
Councilmembex Motin provided a NCDA update. He stated that Benton County dropped
out of the Northstar Corridor Development Authority as they did not see it as enough of a
benefit to its residents.
6. Other Business
There was no other business.
7. Council Updates
There were no council updates.
8. Staff Updates
Ms. Johnson stated that she received the resignation of Parks Maintenance Supervisor Terry
Bye. She noted that Parks Maintenance employee Rodney Schreifels will serve as acting
Parks Maintenance Supervisor.
9. Adjournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk River
City Council at 8:47 p.m.
Minutes prepared by Jessica Miller.
Tina Allard
City Clerk
INFORMATION
WESTERN FACILITIES SERVICE OFFICE
~'' UNITED ST/~TES
~POSTI.1 L SERVICE
March 24, 2008
Stephanie Klinzing
Mayor, City of Elk River, MN
13065 Orono Parkway NW
Elk River, MN 55330-5600
Dear Ms. Klinzing:
This is written as a follow up to my previous letter dated February 20, 2008 concerning the
selection of a new location for the new Elk River, MN Post Office.
After reviewing other sites, the Postal Service has decided to select the Elk Park Center
site located in the Target Center on Freeport Avenue. We believe this new site will provide
the community with an upgraded, modern facility that offers a safe working environment for
our employees and a level of service expected by our customers.
As provided in postal regulations, your office may appeal the decision to select this location
within the next 30 days. As appropriate, your appeal should be directed to Vice President,
Facilities, and addressed to my attention at the address shown in this letter. A response
will be provided within 15 days.
Sincerely,
~~
Garry Matto --
Real Estate Speci ist
Cc: Postmaster
1601NVERNESS ~R W STE 400
ENGLEWGOD, CO 80112-5005
City
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K~ver
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: April 7, 2008
SUBJECT: INFORMATION -River's Edge Meeting Minutes
Attachment
• River's Edge Meeting Minutes -February 13, 2008
Attached is the February 2008 River's Edge meeting minutes. A meeting was not held in
March. The next meeting is scheduled for Wednesday, Apri19, 2008. Staff continues to
attend the monthly meetings as city staff liaison.
S:\EDA\HRA\AGENDA\Year 2008\4.7.08 downtown update.doc
Rivers Edge Meeting Minutes February 13, 2008
The meeting was called to order at 8:07AM. Present were Jim Rudolph, John Anderson,
Terry Mauer, Roger Hebeisen, David Rymanowski, Bill Houlton, Fred McCoy, Karen
Attia, Wendy Simenson
Treasurers Report: Jim reported that there is $1811.16 in the treasury.
Secretary's Report: Minutes from the December 12th meeting were accepted (moved by
Jim, seconded by Roger)
Old Business:
City Update:
Parking Update: Terry told us about the parking study that was done Tuesday,
Wednesday and Thursday the 2°a week of December between the hours of 8AM and
SPM. License plates were recorded for stalls in the King Ave Lot and the monitored
street parking areas downtown. It was found that most of the three hour parking spots
turned over in less than three hours and that there was more than amble parking available.
The goal of the study was to give a point in time overview of downtown parking. The
information will be available in Elk River City Council packets and a history is being
built of stall occupancy levels so that it can be monitored over time.
New Street Lights on Highway 10 in Downtown. The City is looking at replacing the
existing street lights on Highway 10. MnDot has to approve what the City puts up on the
highway. Bryan Adams is the point person for the downtown light poles and power to
trees. We are interested in getting banners that could be hung from the light poles to
welcome people to downtown or announce events. We need to check with Bryan about
whether the poles would be compatible with banners and if we can use them for that.
Main and Jackson Intersection Timeline and Plans: The intersection at Jackson Ave
and Main Street in downtown will be closed from a Monday through the weekend and
opening on the following Friday. The time of the closing is tentatively set at the Monday
after Mother's day (May 12, 2008). In April, prior to the closing of the intersection, the
cache basins and corners at the intersection will be reconfigured. Traffic will continue
through the intersection at this time. There will not be flower pots put on the corners as
originally planned because of the challenge of irrigating them. There will be trees planted
near the intersection. The City Council said that they would like to see more trees in
town. The only loss of parking will be 1 Motorcycle parking spot in front of the Sunshine
Depot. They are also looking at putting in a bike parking rack in that area.
When the intersection is closed: Concrete will be poured to edge the brick pavers in the
crosswalks and may be poured in a diamond pattern in the middle of the intersection.
Brick pavers will go all the way to the pavers in the alley next to the Sunshine Depot.
Parking spots will be made at 90 degree angles on Main Street during the road closure to
increase the availability of street parking. Room will be left for cars to turn around and go
back out. Community Service officers will be available to help guide traffic. Signs will
go up a week before the intersection closure to make drivers aware of what dates the road
will be closed between.
The Resurfacing: After the intersection is reopened, it will be protected while Main
Street from the Parrish Bridge to Lowell Ave and Jackson Ave between Main Street and
Highway 10 are resurfaced. The Edges of the road will be ground down and fresh
blacktop will be put on. They will not be applying gravel. The streets will be open while
the resurfacing is taking place. Street Parking maybe unavailable on the parts of the
streets that they are working on at the time. Jackson Ave may need to be closed for part
of one day. The plan is to be done with the intersection work for the Killer Hayseed
concert in the Park on Thursday June Stn
The Members present at the meeting voted to support the City's plan to improve the
intersection at Main and Jackson. It was suggested that Terry send out information on the
intersection closing to all of the building owners and business owners in downtown Elk
River.
New Business:
Flowers/Art/Music/Lights: Terry is the point person for more flower pots downtown.
The Jackson Place apartments look like they have planters next to the railing. Wendy will
contact the MetroPlains leasing agent to see what their plans are for flowers.
We discussed having the music from the park spill out into the street when there is
entertainment in the park. (Speakers on light poles or at top part of park) Can't always
hear the music if you are away from the River. We wouldn't want to do it all of the time,
but it would help let people know that there was something happening in the park.
With the Arts Alliance moving downtown there is an opportunity to look for getting more
"ART" downtown. Possibly have a bench contest like a snoopy contest where people
paint benches to look like paintings or ??? Businesses would have to make sure that they
were aesthetically pleasing and kept in good condition.
The meeting was adjourned at 9:OSAM