10-06-2008 HRA MINMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, OCTOBER 6, 2008
Members Present: Vice-Chair Toth, Commissioners Lieser and Motin
Members Absent: Chair Wilson and Commissioner Kuester
Staff Present: City Administrator Lori Johnson, 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 Vice-Chair Toth.
2. Consider October 6 2008 HRA Agenda
MOVED BY COMMISSIONER LIESER AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE OCTOBER 6, 2008, HRA
AGENDA AS PRESENTED. MOTION CARRIED 3-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. AUGUST 4, 2008 HRA MINUTES
3.2. CHECK REGISTER -APPROVED
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 3-0.
4. Open Mike
There was no one present for Open Mike.
5. Consider Resolution Recommending Authorization for Rental of ertain Unit in Bluff
Block Development
Ms. Mehelich stated that the HRA is asked to consider and make a recommendation to the
City Council on a resolution authorizing rental of certain units in the Bluff Block
development. She provided background information regarding the Lions Park Apartments
fire and the offer by MinnWest Bank to temporarily rent several of the Bluff Block
Housing & Redevelopment authority
October 6, 2008
Page 2
residential units to qualifying displaced families. Ms. Mehelich stated that rental of the units
would have no impact on the development agreement for the Bluff Block.
Commissioner Toth questioned who decides who can rent the units?
(Richard Schroeder, representing MinnWest Bank -stated that rental of the units would
be managed by Acuity Management Company, and they would ensure that the tenants were
actually displaced by the fire, and that they met credit guidelines.
Commissioner Lieser questioned the October 31, 2009 lease termination date. Mr.
Schroeder stated that he was given the date. He noted that their goal is to sell the units and
that the units would still be available for sale. He explained that they have a number of other
units that are total finished or near completion, but that if someone wanted to buy a
particular unit that is rented, the tenant could be moved to another space. Ms. Mehelich
stated that the October 31, 2009 date was proposed by the city's attorney and was not set by
the property owner.
Commissioner Motin stated that he appreciated's offer to rent the units. He asked if the
owners currently in the building have been contacted regarding this proposal. Mr. Schroeder
stated that the condo owners will be notified at a meeting scheduled for October 8~, at
which time the homeowners will approve the by-laws and elect a chair. Commissioner
Motin asked how long before the Lions Park Apartments would be inhabitable. Mr.
Gongoll noted that the tenants on the east side of the building have been allowed back into
their homes, but that it may be at least a year before the reconstruction is completed.
Commissioner Moon stated that he is in favor of the temporary rental of the Bluff units, but
does not to want it to turn into long-term rental property.
Mr. Schroeder stated that MinnWest Bank has no interest in being a landlord and their goal
is to sell the condos as quickly as possible.
MOTION BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO APPROVE RESOLUTION NO. 08-03, A
RESOLUTION RECOMMENDING AUTHORIZING RENTAL OF CERTAIN
UNITS IN BLUFF BLOCg DEVELOPMENT, WITH THE FOLLOWING
CHANGE:
• CHANGE THE LEASE TERMINATION DATE FROM OCTOBER 31,
2009 TO DECEMBER 31, 2009
MOTION CARRIED 3-0.
6. Update on Housing Rehabilitation Programs
Ms. Deckert reviewed the information provided in the Commissioners' packets regarding
housing rehab programs available to residents, and the marketing plan for these programs
proposed by staff. She noted that the information will be published in the Elk River Star
News as well.
Commissioner Lieser noted that she is very excited about the potential partnership with the
Minnesota Center for Energy and Environment.
Housing & Redevelopment ~uthoriry
October 6, 2008
Page 3
7. Consider Participation with MN Center for Energy & Environment to Market Elk River
Housing Rehabilitation Loan Programs
Ms. Deckert introduced Erica Graber-Mitchell from the Minnesota Center for Energy &
Environment (CEE). Ms. Graber-Mitchell reviewed programs offered through the MN
Housing Finance Agency (IVIhIFA), explaining how the city can benefit by partnering with
CEE to distribute a marketing flyer. Ms. Graber-Mitchell discussed options for mailing of
the flyer and costs. It was the consensus of the Commission to send the flyer to single
family homeowners at this time.
MOTION BY COMMISSIONER MOTIN AND SECONDED BY COMISSIONER
LIESER, APPROVING THE HRA EXPENDITURE OF UP TO $2,000 FOR
PRINTING, POSTAGE AND MAILHOUSE COSTS FOR DISTRIBUTING A
BROCHURE TO ELK RIVER SINGLE FAMILY HOMEOWNERS,
CONTAINING INFORMATION REGARDING AVAILABLE PROGRAMS FOR
HOUSING REHABILITATION. MOTION CARRIED 3-0.
8. Presentation by MN Home Ownership Center re -~g_rding Mortgage Counseling Services
Ms. Mehelich introduced Ed Nelson, Communications Manager for MN Home Ownership
Center. Mr. Nelson provided an overview of the foreclosure issues in Minnesota and the
Center's outreach programs and services available to Elk River households. He explained
that the Center is a non-profit organization which began in 1993 in Minneapolis, to provide
education and counseling. He stated that there is a network of 25 Mortgage Foreclosure
Prevention counseling centers in Minnesota. Mr. Nelson noted that there is no charge for
their services. He explained that LSS Financial Counseling is their office in Elk River, and
this office can be reached at 1-800-777-7419. Mr. Nelson provided the following statistics
regarding foreclosures in Minnesota and Sherburne County:
State of Minnesota
2005- 6,500 foreclosures
2007- 20,500
2008 - 29,000 projected
Sherburne County
2007 - 671 foreclosures
2008 -anticipate more than in 2007 (700+)
Mr. Nelson explained that there has been an increase in the number of people looking for
energy assistance, higher use of food shelves, and domestic violence. There also is the issue
of vacant homes being abandoned, vandalized, and blighted neighborhoods. Mr. Nelson
stated that there is help available for renters in homes that are in danger of foreclosure by
calling 1-800-866-3546.
Mr. Nelson stated that the counseling centers provide a mortgage support advisor to reach
long-term solutions, but does not necessarily mean the homeowner will be able to keep their
home. He noted that their advisor will work with them to help make sure no one takes
advantage of them. Mr. Nelson explained that the sooner someone gets into the network,
the more options they will have. Mr. Nelson stated that the network can only provide
assistance if a homeowner's primary residence is in foreclosure, or maybe going into
foreclosure. He noted that they have direct marketing materials available which can be
inserted in utility bills or mailed as postcards.
Housing & Redevelopment Authority
October 6, 2008
Page 4
Ms. Mehelich stated that the information is already available on the dty's website and will be
posted on the cable television channel and city newsletter.
Other Business -None
10. Adjournment
There being no other business, Vice-Chair Toth adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:17 p.m.
Minutes prepared by Debbie Huebner
Tina Allard, City Clerk