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06-01-2009 HRA MINMEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JUNE I, 2009 Members Present: Chair Wilson, Commissioners Kuester, Lieser, Motin and Toth Members Absent: None Staff Present: 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 June 1, 2009 HRA Agenda MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER MOTIN TO APPROVE THE JUNE 1, 2009 HRA AGENDA AS PRESENTED. MOTION CARRIED 5-0. 3. Consider June 1, 2009 Consent Agenda MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER MOTIN TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. APRIL 6, 2009 HRA MINUTES 3.2. APRIL 13, 2009 JOINT MEETING MINUTES 3.2. CHECK REGISTER 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT MOTION CARRIED 5-0. 4. Open Mike - No one appeared for Open Mike. 5. Update on Neighborhood Stabilization Program Ms. Deckers provided an update on the Neighborhood Stabilization Program (NSP). She noted that the contract with Tri -CAP has been finalized, and staff has begun identifying potential homes for acquisition/rehabilitation. Ms. Mehelich stated that staff does not recommend city participation in the second round of funding for NSP funds, and further explained the application criteria and requirements. She noted that it was also recommended by GMFH not to pursue the second round of funding due to the application's focus on urban cities. Housing & Redevelopment Authority June 1, 2009 Page 2 Chair Wilson asked when the citywould receive its funding. Ms. Deckert stated that funding is expected in approximately three weeks. Commissioner Motin asked how the open houses were attended Ms. Mehelich stated that both the first and second open house were attended by approximately 45 people. Ms. Deckert noted that she has received many inquires about the program, but many of the callers are not inquiring about homes in the target neighborhoods. Commissioner Motin asked if counseling is available for homeowners in foreclosure in Elk River. Ms. Deckert stated yes, that mortgage counseling information was presented to the HRA by Ed Nelson, Communications Manager for MN Home Ownership Center, at the October 6, 2008 HRA meeting. Ms. Mehelich stated that in a recent presentation she attended GMHF reported that the MN Homeownership Center has had a 50 percent success rate helping homeowners through their free services. Commissioner Toth expressed his concern that property owners are not getting the information. He asked howthe foreclosure counseling information is distributed. Ms. Deckert stated that the information is available on the city's website, the cable channel, at city hall, by the city's building inspectors, and at local employers and realtors' offices. Ms. Mehelich asked if the HRA was interested in a direct mailing. Ms. Deckert noted that a mailing would be costly. She explained that an insert in the utility bills was not an option, due to the way the bills are processed. Ms. Mehelich stated that action was taken by the 2008 legislature to have the foreclosure counseling phone number and information available to "at risk" property owners. Commissioner Motin stated he could not justify the cost of a mailing to all property owners, when only a small percentage of them are affected. Commissioner Toth asked that the Star News consider publishing an article with the information. 6. Review Draft 2009-2012 Economic Development Strategic Plan Ms. Mehelich reviewed the priority issues identified at the April 13th work session. She stated that after adoption of the Strategic Plan, a work plan with specific action items and timetable for completion will be prepared by staff and reviewed by the EDA and HRA next month. Ms. Mehelich noted that Final Strategic Plan will be considered by the EDA on June 8th. 7. Shepherd's Krdae Development k oncent — Brenda Hoffman of Rum River Health Services, presented a concept for a 22 -unit townhome project in Elk River (Shepherd's Ridge), for HUD -eligible homeless families impacted by addictions. She reviewed information regarding the success of a similar project in Princeton, Minnesota, named Belle Haven Townhomes. Ms. Hoffman stated that of the 16 heads -of -household in the Princeton project, 14 are employed and 2 are in college. The project is proposed in partnership with RS Eden Property Management. Housing & Redevelopment Authority Page 3 June 1, 2009 ----------------------------- Ms . Hoffman stated that approximately 3.6 acres is needed to accommodate the footprint of the proposed project. She reviewed a brief PowerPoint presentation which provided general information on the proposal. The proposed site is located in the southwest corner of School Street and Jackson Avenue. She explained that a letter of intent has been sent to the seller. Also, they have received a $20,000 grant from Fannie -Mae for preliminary expenses. Ms. Hoffman provided information regarding the need for this type of a project in Elk River, citing support from Sherburne County Community Social Services. Commissioner Toth asked what will happen if their proposed funding source "dries up". Ms. Hoffman stated that they will pursue funding in October from MHFA She noted that the fust two applications for funding the Princeton project were not approved, but the third was approved. She stated that she believes if they can demonstrate the need, the funding will eventually come through. Commissioner Toth stated that the proposed location is under consideration by the City for long-range planning. Ms. Mehelich noted that the Planning Commission and City Council will take into account the draft plan. The draft plan proposed mixed uses for this area, including office and single family/multi-familyhousing. Commissioner Toth stated that he had a concern that the location of the proposed building could impact the future widening of Jackson. Ms. Hoffman stated that theywill be proposing a Planned Unit Development (PUD). They are hoping to persuade the seller to split the property. She explained their original plan included an apartment building similar to Jackson Place, in addition to the supportive housing project being proposed currently. Chair Wilson asked if there were objections to the Princeton project regarding the type of housing or the people who would be living there. Ms. Hoffman stated that there was some concern, but people understood the project once they had more information about the need. Chair Wilson asked if numbers were available on the need in Elk River. She stated that she did not have the actual numbers with her this evening, but based on the number of foreclosures in Elk River, the demand on Sherburne County Social Services and people requesting homeless assistance, and the CAER food shelf, and the number, the need is clear. Ms. Hoffman noted that $365,000 in local funds were raised from the Princeton area community to cover the costs of moving Rum River Health Services' offices to the Belle Haven location. Commissioner Motin stated he does feel there is a need for this type of housing, but he questions the location and how adjacent property uses may be impacted, such as Lions Park and the schools. He stated that more information maybe needed about how the program is run. Ms. Hoffman explained that the program is for families with individuals who have been through treatment, have a history of recovery, and are looking for a sober lifestyle. She stated that some people come to them literallywith nothing. She stated that families in the program have made incredible progress in the stable, supportive environment. The location is ideal because many families have children who would attend the schools, play in the park, and utilize the Boys & Girls Club. Families rarely have a vehicle or driver's license and need to be close to these services as well as shopping. She stated Rum River Health Services Housing & Redevelopment Authority June 1, 2009 Page 4 offers van service for appointments, interviews/applications for jobs, and daycare. Ms. Hoffman noted that since the location is not far from the Northstar station, tenants could commute to other areas, as well. Ms. Hoffman stated that the concerns of residents in Princeton seem to have been eliminated. She stated that many of these families are living in our neighborhoods, and that it has been a positive experience for them to be located in one area, where they can reinforce and help each other. Ms. Hoffman stated that assisting families in need benefits the entire community. Commissioner Toth asked if Ms. Hoffman experienced any "not in my neighborhood" resistance. Ms. Hoffman stated that she received two phone calls, but she was able to persuade them to support the project. She noted that of the 32 families that have lived in the Belle Haven project, only three had to be asked to leave for not complying with the program. She stated that one of the requirements is to submit to random drug testing. Ms. Hoffman explained that the average stay of a family is 22 - 33 months. Commissioner Lieser asked why so many garages are needed if most of the residents do not drive. Ms. Hoffman stated that the City of Elk River requires at least a single car garage per dwelling unit. She stated that if they did not have to build them, they could reduce their cost per unit significantly. Chair Wilson asked what Ms. Hoffman was looking for from the HRA. Ms. Hoffman stated that she asked that the HRA consider a partnership for funding, as HRA's in other cities often initiate projects of this type. She stated that they are just in the beginning stages and they would like to leave the door open for any future opportunities. She stated that initially the goal of Rum River Health Services was to prevent fetal alcohol syndrome; and that each program has opened their eyes to another need. She stated that lack of housing has proven to be the greatest barrier. .Other Business Chair Wilson noted that he has received information that the First National Bank of Elk River is planning to move their offices to the First National Financial Center across the street. Adjournment There being no other business, Chair Wilson adjourned the meeting. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 6:45 p.m �uterepared by Debbie Huebner. Tina d Ci Stewart Wilson Chair, Housing and Redevelopment Authority