12-15-2008 HRA MINSPECIAL MEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 15, 2008
Members Present: Vice-Chair Toth, Commissioners Lieser and Motin. Commissioner
Kuester arrived at 5:20 p.m.
Members Absent: Chair Wilson
Staff Present: City Administrator Lori Johnson; Community Development Director Jeff
Gongoll, Director of Economic Development Catherine Mehelich,
Economic Development Assistant Annie Deckert, Code Enforcement
Officer Dave Hetrick, Recording Secretary Debbie Huebner
Also Present: Mayor Klinzing
Call Meeting To Order
Pursuant to due call and notice thereof, the spedal meeting of the Elk River Housing and
Redevelopment Authority was called to order at 5:00 p.m. by Vice-Chair Toth.
2. Discuss Grant Application for Neighborhood Stabilization Program (,Foreclosure Recov~l
Funds
Mr. Gongoll stated that the purpose of the meeting tonight is to discuss the program. Staff
has reviewed foreclosure data and has targeted specific neighborhoods for possible projects.
He stated that the HRA is asked to authorize entering into an agreement with S.E.H. to
prepare the HRA's grant application. He noted that he received a proposal from S.E.H.
today.
Mr. Gongoll reviewed areas that staff feels are eligible for funding including:
• The Bluffs of Elk River condos
• Windsor Oaks of Elk River MN 55330
• Park Pointe
• Trott Brook development area (includes all Trott Brook subdivisions)
Vice-Chair asked if other areas could be added. Mr. Gongoll stated that the application
requires the city to name areas of focus, but would allow for some expansion. Ms. Mehelich
stated that the HRA may identify other neighborhoods that they would like staff to research.
The HRA discussed conditions in the neighborhoods with Mr. Gongoll and Mr. Hetrick.
Ms. Mehelich stated that staff will be taking a closer look at older homes north and west of
the downtown.
Commissioner Kuester stated that if the down payment assistance activity (homebuyer-
initiated purchase rehab program) were chosen, they would want to include as a wide range
Housing & Redevelopment authority
December 15, 2008
Page 2
of properties. Ms. Mehelich noted that the funds are non-competitive, but the dty must
justify the need. She explained that the city map utilize some funds to purchase properties
either for rehabilitation or demolition, abandoned, vacant or blighted properties, not in
foreclosure. MN Housing is looking for other investments that are in areas where economic
development is occurring, such as the Bluffs. She also explained how the developments
identified by staff are in proximity of commercial or business park areas which are
experiencing economic development.
Commissioner Lieser asked if the funds could be used in other areas, other than those
identified in the application. Ms. Mehelich stated that as the market changes, the city may
make a request to utilize funds elsewhere, by providing documentation. Ms. Mehelich
explained how the funds can be used to revitalize neighborhoods with a number of
foreclosures.
Commissioner Motin expressed his concern that down payment assistance is provided for a
buyer for a home they can't afford.
Ms. Mehelich stated that in order for a home to be eligible, the home must be purchased at
an average 10 percent discount of the appraised value.
Commissioner Toth stated that he did not feel the program would have the same impact in
Windsor Oaks as it would in Trott Brook. Discussion followed regarding the number of
foreclosures in Elk River Station and how the homeowner's assoaation is affected.
Mr. Gongoll asked if the HRA is comfortable with staff s recommendation to utilize a down
payment program.
Ms. Mehelich discussed blighted commercial areas. She noted that the end use must be
public facilities such as libraries, or residential use. She noted that Otsego will be applying
for a portion of the same 55330 funds.
Discussion followed regarding the Bluffs. Ms. Mehelich stated that MNWest Bank is very
interested in the program, and they feel strongly that this may help them. Mr. Gongoll
stated that providing assistance for the Bluffs would seem to fit the definition of lessening
the impact on neighborhoods. Ms. Mehelich stated that a part of the application is
leveraging assistance from other parties, and the bank is interested in developing some
financing programs that would be of assistance to potential buyers as well.
Mr. Gongoll asked that the HRA consider authorizing staff to submit an application to
Greater MN Housing Fund for technical assistance funds.
MOTION BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO AUTHORIZE CONTRACTING WITH S.E.H.
FOR GRANT WRITING SERVICES AT A COST NOT TO EXCEED $5,000.
MOTION CARRIED 4-0.
Mr. Gongoll stated that staff will research additional neighborhoods with the greatest need
based on the number of foreclosures.
Commissioner Motin suggested that Elk River Station also be included.
Housing & Redevelopment Authority
December 15, 2008
Page 3
Commissioner Kuester asked if staff is aware of any commercial sites that should be
demolished as prospective sites for trails, parks or other public facilities. Ms. Mehelich
indicated she was not aware of any but, stated that she inquired about infrastructure
improvements (right of way) for properties along Railroad Drive she was told infrastructure
would not be eligible public facilities.
Discussion followed regarding blighted properties.
3. Adjournment
There being no other business, Vice-Chair Toth adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:12 p.m.
Minut prepared bie Huebner
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Tina Allard, ity Clerk