4.3. SR 02-19-2002MEMORANDUM
Item# 4.3.
TO:
FROM:
DATE:
SU BJ ECT:
I~layor and Council /~.
///
Pat Klaers, City At~t4*at'or
February 19, 2002
HRA Update and Consider Special HRA/City Council Meeting
Councilmember Paul Motin is the City Council representative on the Housing and
Redevelopment Authority. At this February 19, 2002 meeting, Councilmember Motin is
scheduled to provide the Council with an update on HRA activities.
Special HRAICity Council Meeting
Council is asked to call a special meeting for Monday, February 25, 2002, at 5:00 p.m., to
meet with the HR_A_ to discuss downtown redevelopment goals and process.
SPECIAL MEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, FEBRUARY 4, 2002
Members Present:
Staff Present:
Chair Toth, Commissioners Thompson, Lieser, Motin and Wilson
Executive Director Catherine Mehelich, Economic Development
Assistant Heidi Hall, City Administrator Pat Klaers, Senior Planner
Scott Harlicker, Planner/Park Planner Chris Leeseberg, City
Engineer Terry Maurer, and City Clerk Sandra Peine
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 5:00 p.m. by Chair Toth.
Consider February. 4,2002 HRA Agenda
COMMISSIONER MOTIN MOVED TO APPROVE THE FEBRUARY 4, 2002,
HRA AGENDA AS PRESENTED. COMMISSIONER WILSON SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
Downtown Sidewalk Project Summary
Catherine MeheLich indicated that the final project cost for the 2001 Downtown Sidewalk
Improvement is $320,179.17. Catherine noted that the HRA contribution to the project
consisted of $243,465.17, which is approximately $32,000 over the initial estimate.
City Engineer Terry Maurer discussed the reasons for the overrun. He explained that the
amount of curb and gutter being removed was more than expected which increased the bid.
He indicated that another reason for the overrun involved Northstar Access and Qwest
Communications replacing their facilities under the sidewalk which extended the period of
time the Contractor was working on the project and increased the number of hours for
inspection. Discussion was held regarding whether the HRA should be responsible for the
overrun cost or whether the Council should pick up some of the overrun. Chair Toth and
Commissioner Thompson felt the Council should pick up some of the overrun cost.
COMMISSIONER MOTIN MOVED TO APPROVE THE REVISED
INTERFUND LOAN PAYMENT SCHEDULE FOR THE DOWNTOWN
SIDEWALK REPLACEMENT PROJECT AS PRESENTED. COMMISSIONER
WILSON SECONDED THE MOTION. THE MOTION CARRIED 4-1. CHAIR
TOTH OPPOSED.
Housing and Redevelopment Authority
February 4, 2002
Page 2
4. Do~vntown Riverfront Revitalization Project
4.1. Review Development Objectives and Design Concepts
Catherine Mehelich reviewed the proposed development objectives. She indicated that the
objectives were compiled following feedback from the December HRA meeting and
individual meetings between staff and HRA commission members.
Chris Leeseberg indicated that in December the HRA reviewed five design concept options
prepared by staff, which were based on previous studies and goals of the HRA. Chris noted
staff has refined the concepts since the last review process. Chris presented three new
concepts to the HRA for review. Following review of the concepts the HRA noted that the
"brick block" buildings located along Jackson Avenue between Highway 10 and Main Street
should be maintained as it helps to establish the traditional character of the area. It ~vas
further noted that the HRA would like to see a concept, similar to the earlier Best and
Hempel concept, which would include redevelopment of the riverfront area between Parrish
Avenue and King Avenue.
4.2. Update on Communication Activities
Catherine Mehelich informed the HRA of the methods that will be used to communicate
with the public regarding the revitalization process. She noted that a Downtown Riverfront
Revitalization Q&A Newsletter would be distributed via the newspaper, an open house will
be held on February 12, and the Star News will have an article regarding the project in the
February 6 edition.
4.3. Review Implementation Policies and Next Steps
Jim Prosser of Ehlers & Associates reviewed implementation policies that are necessary in
order to proceed with the redevelopment project. Discussion topics included the possible
need to use the HRA power of eminent domain, the Historical Context Study, and requests
for financial assistance. Jim indicated that the next step will involve soliciting developer
proposals. Commissioner Motin suggested it is important that the Mayor and City Council
concur with the HRA on the project goal, objectives, and process. Ms. Mehelich stated that
the February 25, 2002, HRA meeting will be held jointly with the City Council.
Chair Toth noted that there was a lot of redevelopment potential north of the railroad
tracks, which could be impacted by Highway 10 interregional corridor plans.
4.4. Consider Property. for Sale Located in Revitalization Project Area
Catherine Mehelich indicated that a piece of property located within the HRA's identified
revitalization project area is for sale. The property is located at 204 Lowell Avenue and the
asking price is $74,900. The HRA discussed the merit of purchasing the property.
Commissioner Motin indicated that he would like to know the actual value of the property
before making a decision. It was the consensus of the HRA to take no action on the
purchase of the property at this time.
Housing and Redevelopment Authority
February 4, 2002
Page 3
5. Adjournment
There being no other business, COMMISSIONER WILSON MOVED TO ADJOURN
THE MEETING. COMMISSIONER THOMPSON SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:30 p.m.
Sandra Peine
City Clerk
Elk River
Core CBD Redevelopment
Strategies
Ehlers & Associates
February 4, 2002
1. Solicit Proposals
· Use development objectives and concepts as
basis for RFP
· Request proposals for multiple areas
· HRA not committed to accepting any proposals
2. Preserve some sites for later
development
· Hold some sites from RFP process (Parking
area)
· Include in RFP but drop from development if
proposals do not meet objectives.
Land Acquisition
· Developer to use best faith efforts to acquire
· Require mediation if not successful with efforts
· Eminent domain if mediation is not successful
4. Highway 10
· Elevated Highway 10 likety to pose 3roblems
with development
· Recommend alternative designs
· Seek developer planning feedback
5. Historical Context Study
· Solicit RFP prior to completion of study
· After selection work with developer to explore
results of study in design alternatives
· Use results of developer analysis to assess
costs and impacts of various alternatives
2
6. Redevelopment Time Frame
· Expect need to update concept after 5 years
· Revision to consider market conditions
7. Initial Time Frame for
Redevelopment
· Do not expect construction before 2003
· Later stages 3-7 years
8. Financial Assistance
· Assistance likely due to land cost
· Consider qualifying area for tax increment
· Abatement and grants are other assistance
options
· Value and density impact ability to provide tax
increment assistance
9. Communication
· Redevelopment is controversial
· Forecast time frame, upcoming decisions,
opportunities for public involvement
· Encourage questions
· Respond to concerns
10. Advance purchase of land
~'~': ~
,:¢~:,~, · Generally not recommended
i Exceptions include willing sellers, strategic
locations, reasonable costs, ability to resell
May save on relocation and acquisition
11. Concepts are Framework
· Concepts are not plans
· Final development is likely to be different than'
concepts and even proposals
· Final plan impacted by community input.
market, financing and regulatory reviews
· Be flexible
4
Final Thoughts
· Redevelopment is long process
· Take measured steps
· Many small (but important) decisions
· Don't dismiss any,concerns