04-04-2005 HR MINMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 4, 2005
Members Present: Chair Wilson, Commissioners Kuester, Lieser, Toth, and Motin
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, Assistant
Director of Economic Development Heidi Steinmetz, and Recording
Secretary Jessica Miller
1. 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 Wilson.
2. Consider Apri14, 2005 HRA Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE THE APRIL 4, 2005 HRA
AGENDA. MOTION CARRIED 5-0.
Consider Consent Agenda
Commissioner Toth indicated that he would like the wording changed in the March 7, 2005,
minutes under the discussion of 2005 HRA official depositories. Mr. Toth indicated that he
would like the wording changed from "the city should select financial institutions that
directly benefit the citizens of Elk River" to "the city should select financial institutions that
are taxpaying citizens of Elk River."
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER TOTH TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. CONSIDER MARCH 7, 2005, REGULAR MEETING MINUTES AS
AMENDED
3.2. CHECK REGISTER
MOTION CARRIED 5-0.
4. Open Mike
There was no one present for Open Mike.
Housing & Redevelopment Authority
April 4, 2005
5. Downtown Revitalization Project Update
Page 2
Director of Economic Development Catherine Mehelich indicated that staff continues to
work with MetroPlains in anticipation of the summer project construction of the Downtown
Revitalization Project.
K»zgAzpnue Parking Lot brcpmz.~reertt
Ms. Mehelich indicated that staff is continuing to work with the King Avenue Parking Lot
Taskforce to discuss parking lot design and enforcement options. Ms. Mehelich stated that
staff has been discussing signage during construction of the parking lot and other forms of
communication for businesses and customers. She reviewed the anticipated project schedule
and indicated that the parking lot is proposed to be completed by July 4.
Chair Wilson questioned what type of signage would be used during parking lot
construction. Ms. Mehelich indicated that staff brainstormed with Lisa Raduenz, the
transportation consultant who is facilitating the Taskfoce, and the thought was to have the
signage geared more towards customers maybe indicating that the construction is temporary
and that additional parking is coming soon.
Chair Wilson questioned what was on the King Avenue Parking Lot Taskforce agenda for
their next meeting. Assistant Director of Economic Development Heidi Steinmetz indicated
that this will be the first meeting on parking enforcement and Police Chief Jeffrey Beahen
will be present to discuss this issue with the Taskforce.
Commissioner Kuester questioned if employee parking will be designated by signage or if
the employers will be responsible for notifying their employees of where to park. Ms.
Steinmetz indicated that this issue will be discussed at the next Taskforce meeting but that
the Taskforce did designate the northwest quadrant of the parking lot as employee parking.
She indicated that she went door to door to the businesses and questioned how many
employees will be parking in the area at any one peak time and that the numbers are higher
than originally estimated by the Taskforce.
Blu,$'Block P%aerties
Ms. Mehelich stated that a purchase agreement between MetroPlains and US Bank was fully
executed at the end of February and that depending on the completion of their new facility,
US Bank anticipates vacating their current location no later than October 1. Ms. Mehelich
indicated that a relocation advisor, Conworth, Inc., has been retained by the city to advise
the property/business owners and residential tenants of their statutory relocation rights and
to process all relocation claims. She noted that the city is ultimately responsible for meeting
relocation regulations but that all relocation costs are being passed directly on to the
developer.
Small Cities DecelodnaZt Program (SCDP) - Tackson Block Loan
Ms. Mehelich stated that a key component of the downtown project included a Small Cities
Development Program (SCDP) grant that was awarded to the city from the MN Department
of Employment and Economic Development (DEED) in 2004. Ms. Mehelich indicated that
although the city's application included a funding request for commercial and rental
rehabilitation, a $400,000 grant was awarded specifically to the Jackson Block rental housing
new construction component of the application.
Ms. Mehelich indicated that the grant application proposed that the city, through its HRA,
would lend MetroPlains $400,000 to help fill the financing gap that results from the
Housing & Redevelopment Authority
Apri14, 2005
Page 3
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disconnectbetween the cost of constructing affordable rental housing and cash flows
available to repay debt. She stated that the application proposed that the loan would be
repaid in full at 1% interest at the end of 30 years consistent with MN Housing Finance
Agency (1vIHFA) financing. Ms. Mehelich stated that the loan documents are currently being
prepared by the City Attorney for the HRA's consideration at its regular May meeting.
6. Discuss Draft Puroose Project Goal and Objectives for Downtown North of Hiahwav 10
Assistant Director of Economic Development Heidi Steinmetz presented the concept plan
for Downtown North of Highway 10. Ms. Steinmetz indicated that staff is currently using
the concept map as a guiding document for redevelopment proposals and inquiries from the
private sector. Ms. Steinmetz indicated that the next step prior to adopting the
redevelopment plan is to develop a narrative description of the HRA's vision for the area.
Ms. Steinmetz reviewed a draft narrative with the HRA and requested HRA input. The HRA
suggested several changes to the draft.
The HRA recommended holding a joint meeting with the City Council to review the draft
image concept map and narrative.
7. Discuss Potential Visioning Process for West Side of Downtown
Assistant Director of Economic Development Heidi Steinmetz stated that Maxfield
Research, Inc. conducted a market study of downtown Elk River in Apri12001. Ms.
Steinmetz stated that at that time, Maxfield identified three distinct market areas within the
HRA's study area: the Core Central Business District (CBD), the Northern Area, and the
Western Transition Area. Ms. Steinmetz indicated that since 2001, the HRA has continued
redevelopment planning with the Core CBD (Downtown Revitalization Project) and the
Northern Area (the recent visioning process for downtown North of Highway 10). She
indicated that in order to create a comprehensive master redevelopment plan for downtown,
the HRA may wish to consider undergoing a visioning process for the west side of
downtown (the Western Transition Area). She noted that Maxfield Research's Conclusions
& Recommendations and Summary of Findings for the Western Transition Area suggest
that the area has potential for redevelopment to multi-family housing and some additional
offices.
Director of Economic Development Catherine Mehelich indicated that staff could submit a
grant to the State that would provide funds to homeowners for improvements.
Commissioner Motin stated that he would like the HRA to continue reviewing and
discussing the Western Transition Area but would like to move slowly on the area until after
the Downtown Revitalization project construction has started. The HRA directed staff to
begin preparing the past research and current conditions of the area.
Update on Housing Programs
Mirmesota Czty Partici~ati~c Progv~art (MCI'P)
Assistant Director of Economic Development Heidi Steinmetz stated that from 1991 to
1996, the HRA participated in the MN Housing Finance Agency's (1VII~A) MN City
Participation Program (MCPP), which provides loan dollars to qualified first time
homebuyers. She indicated that the HRA has not submitted a separate application for the
program the past several years as Sherburne County has done so and has been awarded
annual allocations. Ms. Steinmetz stated that Sherburne County applied fora 2005 allocation
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April 4, 2005
Page 4
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and was recently awarded $1,344,996. Ms. Steinmetz noted that staff will be attending an
informational session on the program and information will be added to the website.
HOME Rental Rehabilitation Program
Ms. Steinmetz indicated that the HOME Rental Rehabilitation Program provides funding
that is available through the Central MN Housing Partnership (CMl-III) as a loan with 0%
deferred interest rate for the rehabilitation of existing rental properties located in several
Central MN counties, including Sherburne County. Ms. Steinmetz stated that staff forwards
information on this program to Elk River apartment owners/managers each year and in
recent years, only one Elk River apartment owner/manager has utilized the program.
Ms. Steinmetz stated that staff received two inquiries earlier this year on the program but
CME Il' has indicated that neither inquiry led to utilization of the program. She stated that
Fire Prevention Specialist Jeff Smith is distributing HOME program information to Elk
River apartment property owners/managers during his apartment inspections this year
Section 8
Ms. Steinmetz indicated that staff receives only two or three inquiries each year regarding the
Section 8 program but when an inquiry is received, staff acts as a referral source to the St.
Cloud HRA since they administer the Section 8 program for Sherburne County.
Ms. Steinmetz stated that in February 2005, the St. Cloud HRA indicated to staff that new
Section 8 vouchers will not be available until further notice due to Federal funding cuts and
that the current waiting list to receive Section 8 is five years.
Commissioner Kuester questioned who a tenant should call if they have a problem with their
apartment owner/manager. Director of Economic Development Catherine Mehelich
indicated that there is a tenant/landlord rental association in the Twin Cities that can be
contacted.
9. 2004 Annual Report
Director of Economic Development Catherine Mehelich indicated that the 2004 Annual
Report was presented to the City Council at its special meeting on March 28, 2005. Ms.
Mehelich reviewed the Economic Development Department section of the 2004 Annual
Report. Ms. Mehelich highlighted a few of the HRA's 2004 accomplishments including the
following:
^ Housing Work Plan
^ Downtown North of Highway 10 Visioning
^ Downtown Revitalization Project
10. Other Business
There was no Other Business.
Housing & Redevelopment Authority
April 4, 2005
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11. Adjournment.
Page 5
There being no further business, MOVED BY COMMISSIONER MOTIN AND
SECONDED BY COMMISSIONER TOTH TO ADJOURN THE MEETING.
MOTION CARRIED 5-0.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:10 p.m.
~~
essica Miller
Recording Secretary