05-16-2005 HR MINSPECIAL MEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 16, 2005
Members Present: Chair Wilson, Commissioners Kuester, Toth, Lieser, and Motin
Staff Present: Director of Economic Development Catherine Mehelich, City
Administrator Pat Klaers, 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 May 16, 2005 HRA Agenda
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
KUESTER TO APPROVE THE MAY 16, 2005, HRAAGENDAAS PRESENTED.
MOTION CARRIED 5-0.
3. Consider Small Cities Development Program (SCDP) Loan Agreement
Director of Economic Development Catherine Mehelich introduced Vern Hanson and John
Errigo with MetroPlains, who would be explaining the provisions regarding rent limits and
income limits in the loan agreement between the HRA and MDI Limited Partnership #70
regarding the Jackson Place project.
Commissioner Motin expressed concerns regarding the income limitations relating to the
$400,000 grant. He stated the provision that surprised him in the agreement was the one
stating that space can't be rented by someone making more than 60% of the Sherburne
County Median Income. He stated the Commission's intent with the Jackson Place project
was to have affordable housing and not low income housing. He stated that the
Commission's intent was to not have Jackson Place be Section 8 housing.
Mr. Hanson stated the income limits for low income are different than they are for
affordable housing. He stated that residents of Jackson Place will be making over $16.00 an
hour and will have to go through an extensive background check before they will be allowed
in the building. Mr. Hanson stated that new Section 8 vouchers are no longer available in
Sherburne County. He further stated that the HRA has been made aware all along that
MetroPlains would be partially financing the downtown revitalization project with a Small
Cities Development Program grant, which would require affordable income limits.
Mr. Errigo stated that the majority of the workforce residing in Elk River would qualify by
their income level to live in Jackson Place. He stated the main groups living in Elk River
work in the retail, construction, manufacturing, and services industries.
Chair Wilson requested a profile of the type of resident that would be living in Jackson
Place.
Housing & Redevelopment Authority
May 16~ 2005
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Page 2
Mr. Hanson provided a demographic profile of the type of residents that are living in a
Monticello affordable housing project that MetroPlains recently completed. He stated there
are 24 residents in the building and it has a combination of young and old with some middle
stratification. He stated 14 residents are employed exactly as prescribed at the wage
determination for Wright County; three residents are pan time employees on a pension and
social security; two residents on pension and social security; and one resident on a pension,
social security, and some form of public assistance.
Commissioner Motin stated he is surprised about the provision limiting residents to
individuals that are below a certain income level. He stated he is concerned about the ability
of individuals to use public assistance for this project. He stated that people on
governmental benefits don't fit into the profile of the type of resident the city would like to
see moving to the downtown area. He stated there are other places in Elk River that allow
Section 8 housing.
Mr. Hanson explained the difference between a building project that has Section 8 housing
and individuals that have Section 8 vouchers. He stated that people who have vouchers tend
to be individuals in the work force or seniors on a fixed income.
Commissioner Toth stated that the nature of this type of rental system was not explained
(since the beginning of the project) to the Commission very well.
Mr. Errigo clarified the difference between Section 8 rental buildings and Section 8
vouchers. He stated that residents in their buildings have to complete extensive background
checks. Mr. Errigo stated that MetroPlains would be a long time owner and manager of the
Jackson Place project.
Commissioner Kuester stated she feels that Jackson Place will be a good project and she is
comfortable with MDI Limited Partnership #70 managing the building.
Commissioner Lieser stated she completed some research on Section 8 vouchers in
Sherburne County. She stated there are 37 Section 8 vouchers in Sherburne County and 10
in the Elk River area. She stated the history of residents that have Section 8 vouchers is that
they tend to move at least once a year. She further stated that applicants for Section 8 must
complete background checks.
Mr. Errigo stated there are no new Section 8 vouchers available and there hasn't been for a
few years because there hasn't been any federal funding for them.
Mr. Hanson stated that because someone has a Section 8 voucher, it doesn't mean they are
automatically allowed into Jackson Place. He stated they would have to pass the extensive
background checks of MDI Limited Partnership #70, including rental history, credit history,
and criminal background checks.
Commissioner Lieser stated she compared rental rates listed in the Star News paper. She
stated that 10 units fall under the rent that MetroPlains will be requesting and 2 fall over the
amount.
MOVED BY COMMISSIONER LIESER AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE THE SCDP LOAN AGREEMENT
TERMS WITH MDI LIMITED PARTNERSHIP #70 IN THE AMOUNT OF
Housing & Redevelopment Authority Page 3
May 16~ 2005
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$400,000 TO BE REPAID IN FULL AT 1% INTEREST AT THE END OF 30
YEARS. MOTION CARRIED 5-0.
Adjournment
There being no other business, MOVED BY COMMISSIONER TOTH AND
SECONDED BY COMMISSIONER MOTIN TO ADJOURN THE MEETING.
MOTION CARRIED 5-0.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 5:55 p.m.
Tina Allard
Recording Secretary