10-17-2005 HR MINMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, OCTOBER 17, 2005
Members Present: Chair Wilson, Commissioners Kuester and Motin
Members Absent: Commissioners Toth and Lieser
Staff Present: Community Development Director Scott Clark, Director of Economic
Development Catherine Mehelich, Assistant Director of Economic
Development Heidi Steinmetz, Finance and Administrative Services
Director Lori Johnson, and Recording Secretary Tina Allard
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.
2. Consider 10/17/2005 HRAAgenda
MOVED BY COMMISSIONER KUESTER AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE OCTOBER 17, 2005, EIItA
AGENDA AS PRESENTED. MOTION CARRIED 3-0.
3. Consider Metro Plains Agreement Revisions
Community Development Director Scott Clark stated city staff has met with Metro Plains to
work out modifications to the Development Agreement for the Downtown Revitalization
project. He reviewed the modifications as outlined in his staff report and a memo from
Jenny Boulton, attorney at Briggs and Morgan.
A Commissioner asked a question regarding (number 6 from Ms. Boulton's memo) a
reverter during interim financing.
Mr. Clark explained that a reverter ensures the city that if a finance closing with MHFA does
not happen, the city can then take back, and keep in control of, the Jackson Square property.
Chair Wilson asked why the closing with MFHA will not happen until December. He
questioned why there is a gap between the timing of the interim financing and the
permanent financing,
Vern Hanson representing MetroPlains Development, LLC.-Stated there was a new tax
credit syndicater and a staff member in MHFA's office had been out for a month. He
further stated that MetroPlains has interim financing and MFHA has committed and will be
financing the construction.
Sid Inman, Ehlers and Associates-Explained the financing need to not have cross defaults
on the two projects.
Housing & Redevelopment Authority Page 2
October 17, 2005
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Commissioner Motin questioned if there was any need for the city to require the assessment
agreements be recorded.
Mr. Clark stated there was no requirement for the agreement. He stated the critical item on
the assessment agreement was to ensure that the assessment value was at, or slightly below,
true market value in order for the city to capture future "inflationary" value that will be used
to pay various agreement obligations.
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO RECOMMEND THE COUNCIL TO
APPROVE THE DEVELOPMENT AGREEMENT MODIFICATIONS AS
PRESENTED. MOTION CARRIED 3-0.
4. Adjournment
There being no further business, Chair Wilson adjourned the meeting of the Elk River
Housing and Redevelopment Authority at 5:50 p.m.
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Tina Allard
Recording Secretary