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07-07-2008 HRA MINMEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JULY 7, 2008 Members Present: Chair Wilson, Commissioners Kuester, Toth and Moon Members Absent: Commissioner Lieser Staff Present: Community Development Director Jeff Gongoll, Director of Economic Development Catherine Mehelich, Economic Development Assistant Annie Deckert, Recording Secretary Debbie Huebner 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 Ju1~7 2008 HRA Agenda MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER MOTIN TO APPROVE THE JULY 8, 2008, HRA AGENDA AS PRESENTED. MOTION CARRIED 4-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER TOTH TO APPROVE THE CONSENT AGENDA AS FOLLOWS: • JUNE 2, 2008 HRA MINUTES -APPROVED • CHECK REGISTERS -APPROVED • BALANCE SHEET -APPROVED • REVENUE/EXPENDITURE REPORT -APPROVED MOTION CARRIED 4-0. 4. Open Mike There was no one present for Open Mike. 5. Consider Arts Alliance Space Request for 716 Main Street Buildine Ms. Deckert stated that David Raymond of the Arts Alliance has requested permission to store items in the closed off area (approximately 500 - 600 square feet) in the back of the building at 716 Main Street, and that he be given a key so that this area could be accessed during non-city hall business hours. Ms. Deckert referred the Commissioners to the email from Mr. Raymond which listed the items proposed to be stored in the area. She noted that he was informed that if the types of items to be stored or the space he needs changes Housing & Redevelopment Authority July 7, 2008 Page 2 significantly, he will speak to a staff member first. Mr. Raymond was also informed that if the city found a tenant for the space, they would be given 30 days notice to move their things out of the building. Commissioner Motin asked if any additional expenses would be incurred by allowing the Arts Alliance to use the space. Ms. Deckert stated no, that the storage would not require any additional heating or electrical costs, and that staff would be monitoring the amount of storage. Commissioner Motin asked who would be given access (i.e. employees, board members). Ms. Deckert stated that can be decided. She stated that a copy of the key would be given to Mr. Raymond with instructions regarding who could access the building. Commissioner Motin stated he was comfortable with giving them the key with the understanding that no non-members or employees be given a key, and that obviously no business can be conducted out of the space. Commissioner Kuester stated that the Arts Alliance has no employees and that their membership is very extensive, so they would want to limit access to board members. Chair Wilson stated he did not have a problem with the request, as long as access is limited to board members, and there is some sort of written agreement, drafted and signed between the City and the ERtAA. MOTION BY COMMISSIONER KUESTER AND SECONDED BY COMMISSIONER MOTIN TO MOVE APPROVAL OF THE REQUEST BY THE ELK RIVER ARTS ALLIANCE TO USE THE STORAGE SPACE AT 716 MAIN STREET WITH THE FOLLOWING CONDITIONS: • ACCESS TO THE STORAGE AREA BE LIMITED TO THE ARTS ALLIANCE BOARD MEMBERS • NO BUSINESS BE PERFORMED IN THAT LOCATION MOTION CARRIED 4-0. 6. Housing Partnership Opportunities -Residential Rehabilitation Programs Ms. Deckert provided information detailed in the memo to the HRA dated July 7, 2008 regarding rehab programs available for Elk River residents, including: • Tri-CAP & Greater MN Housing Finance Agency • Tri-CAP Energy Conservation (Weatherization Assistance Program) • Central MN Housing Partnership Home Rental Rehab Program • Center for Energy & Environment (CEE) MN Fix-Up Fund • Center for Energy & Environment (CEE) Home Energy Loan Program Ms. Deckert noted that a total of 74 Elk River households have actually utilized the Tri-Cap programs since 1990; 72 for the Weatherization Assistance Program, and 2 utilized the CEE MN Fix-Up Fund. She noted that the Elk River Municipal Utilities offers several programs, as well. Ms. Deckert requested that the I IRA discuss and provide direction on the points listed in her memo dated July 7, 2008. Chair Wilson asked which programs are available for rental properties and which are for owner/occupied applicants. Ms. Deckert stated that most of the programs are available to homeowners and some are available to rental properties. She stated that because most of Housing & Redevelopment authority July ~, Zoos Page 3 the agencies that offer these programs are non-profit, they don't have a lot of funds available to market the programs. She noted that the Tri-Cap funds primarily go to the St. Cloud area, since their offices are located in St. Cloud. Chair Wilson asked if information on these programs could be listed in the city newsletter. Ms. Deckert stated yes, and that perhaps a marketing flyer could be prepared and distributed as well. Commissioner Kuester asked how renters can voice their concerns. Ms. Deckert stated that concerns can be handled through buildings inspections and code enforcement, and that the city has contact information for rental property owners to see where their areas for assistance may be. She noted that the most common request regarding energy efficiency is help in paying bills, which is not allowed as a form of assistance. Commissioner Kuester stated that if there is a continuing concern in one building, the owner could be made aware of what was available for assistance. She felt the information would be valuable to the landlord in order to retain tenants. Ms. Deckert stated that information could be posted on community bulletin boards and the city's cable channel. Commissioner Kuester asked how targeted information could be distributed. Ms. Deckert stated that in her former position, the city partnered with a local mortgage company to make the information available to potential qualifying users. Commissioner Kuester asked about the Elk River Municipal Utilities making information available to customers. Ms. Deckert stated that they currently provide information on their programs in their billings and recently, on the cable channel. She noted that she will be working with the city's cable producer, Jake Pace, to discuss potential marketing plans to work in conjunction with energy efficiency and the promotion of existing home rehabilitation programs. Commissioner Toth asked if it would be possible for staff to approach property owners for possible interest in the programs. Ms. Mehelich explained that staff is requesting what role the HRA wishes to play in making the information available. Since most of the programs are non-profit and offered region-wide, they do not spend a lot of money on marketing. She noted that a certain neighborhood could be targeted for mailing information, such as the older neighborhoods around the downtown area. She suggested starting out communiry- wide marketing about the programs, as well as to some of the agencies, commercial businesses and services that work directly with the homeowners (bankers, mortgage companies, realtors). Ms. Mehelich stated that they could wait to see how the marketing goes, to see if homeowners take advantage of the programs, and if not, the city could consider making a grant application to provide its own program. She noted that that is a lot of work and the application is very competitive. Also, administration of a program could take a lot of time and resources. Ms. Mehelich stated that staff's intent is to provide and update of what programs are already available and how the city can fill in the gap in communicating the information to property owners. Commissioner Toth asked if the HRA's role is to go out and find problems and fix them. Commissioner Motin stated that he did not know if the HRA would want to take such a role, and personally would not want to approach someone and tell them their home is in disrepair. He supported general community marketing of the programs, and possibly directing a mailing to properties near the downtown area. Also, he stated that if the code enforcement officer sees a need through an ordinance violation, the information could be made available. He asked how funds are distributed. Ms. Deckert stated that the Tri-Cap application process is year-round and goes until their funds run out. Also, the Elk River Municipal Utilities limit to first-come first-served. She explained that some programs require the owner to match funds. She noted that it is often the case that money is available, but Housing & Redevelopment Authority July 7, Zoos Page 4 more difficult to find the eligible applicants to receive it. She suggested increased marketing to help make the connection with available funds to interested and eligible applicants. Ms. Kuester suggested having local realtors making a presentation to the senior center regarding programs. She did not feel the city is in a position to set up their own program, but that by promoting the available programs, they could generate a list of items that are not covered anywhere else. Chair Wilson stated that a first step would be to market the rehab programs that are available. He stated previous discussion has indicated the HRA feels there are some neighborhoods that are in need of improvements. The HRA could take some role in directing owners of these properties to the rehab programs so that they can utilize them to fix up their properties. Ms. Deckert asked what specific marketing efforts the HRA would like staff to utilize. Commissioner Motin suggested using the cable channel and newsletter. Commissioner Kuester suggested a process of using steps, and evaluating the results, to determine whether or not they should continue or try something else. Commissioner Motin suggested that the Star News provide an article regarding the programs. Downtown Revitalization Project Update Jackson Place Ms. Mehelich stated that she spoke with the commercial broker and there is no new information regarding new leads or tenants. He expressed appreciation to staff for their assistance in marketing the property through the city's website. Bluffs of Elk River Ms. Mehelich introduced Stephanie Danielson of Avalar Minnesota Real Estate, who is actively marketing the condos. Ms. Danielson stated that Donna Bush of Uniquely Yours has been "key" in redesigning the project. She stated her team includes Chad from TechWork Marketing and Dustin Heggum, general contractor for the project, and Molly Peterson-Nadeau owner of Town Mortgage, who has been involved in the downtown redevelopment project. She stated that Molly is helping with getting the FHA financing going for the project, so that they can sell to all income ranges. She stated that MinnWest Bank is the current owner/seller for the project. A PowerPoint presentation was made at this time, which included photos of the interior and exterior of the building. Ms. Danielson stated that 3 of the 67 units are occupied by residents at this time and were sold previously. Eight units are completed models, which have been redesigned and updated. She noted that the pricing has been reduced. Ms. Danielson stated that approximately 1, 000 people attended the grand opening event on June 19th. There are 19 different floor plans to chose from and can be customized. She reviewed the various amenities of the units including individual heating/cooling systems, all appliances; most units have a maintenance free-decking balcony. Other amenities of the project include electronic camera security, a shared exercise room, a community room with 2 flat-screen televisions, a pool table, game area, reading area, and 2 balconies for outside seating. One garage space is included with each unit, and an additional garage stall can be purchase separately for $15,000. Ms. Danielson stated that the office is open for showing Thursdays through Sundays, from 1 - 5 p.m. Size of the units (1 and 2 bedrooms) range from 700 square feet - 1,300 square Housing & Redevelopment Authority July 7, Zoos Page 5 feet, and prices range from $140,000 - $259,000, with amid-range of $185,000. She noted that the turret unit is the largest at 1,300 square feet and includes 2 bedrooms and 2 baths. Chair Wilson stated that he liked the fact that the office was open during the downtown concert series events. He asked how many units have been sold. Ms. Danielson stated that they do not have any purchase agreements yet, but that they have 10 - 15 shoppers who are very interested, with 3 or 4 potential purchasers. She noted that she will be attending various community events to encourage interest in the Bluffs, and also plans to attend future Rivers Edge meetings. Commissioner Motin asked who will be marketing the commercial space. Ms. Danielson stated that she will be referring interested clients to MinnWest Bank. Commissioner Motin asked if MetroPlains will be taking an office in Jackson Place. Ms. Mehelich stated that they currently have the center unit on Jackson, which is their apartment management office as well as other apartment projects in the area (i.e. Big Lake). 8. Other Business Commissioner Toth asked if the improvements have been made on the 720 Main building. Ms. Mehelich stated the blinds have been installed and Ms. Deckert is working with the city's Maintenance Division to coordinate with the Arts Alliance the painting of the awning at the top of the building. Commissioner Toth asked if there was any new information on the homes on Jackson Avenue. Mr. Gongoll stated that one of the units is currently on the market for rent, and that the grass has been mowed. He did not know the status of the other home. Mr. Gongoll provided an update on the MnDOT/Highway 10 Corridor Study. He stated that he will be providing information regarding the status of the Mississippi Connections Downtown Redevelopment Plan Task Force. It was his understanding that the Council has decided to go forward with the freeway option. Commissioner Motin stated he did not feel it has been decided whether they will go with the expressway or the freeway option, and they are discussing with the consultant the possibility of an expressway that could be converted to a freeway. He stated he did not want to start up the Mississippi Connections Task Force until a decision has been made on the design, and the Task Force would not be providing input on that decision. Chair Wilson stated that in order for the HRA to utilize any financial tools that are available for a project, a redevelopment plan must be in place. He stated that the Task Force was serving at the request of the City Council. He stated he is hopeful that the City Council will be able to make progress on the corridor design, so that the Task Force may resume their work and the HRA can implement a redevelopment plan. Adjournment There being no other business, Chair Wilson adjourned the meeting. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:20 p.m. r~e~ i~~G~u~/t-~c.~ Debbie Huebner Recording Secretary