04-06-2009 HRA MINMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 6, 2009
Members Present: Chair Wilson, Commissioners Kuester, Lieser and Motin
Members Absent: Commissioner Toth
Staff Present: Director of Economic Development Catherine Mehelich, Economic
Development Assistant Annie Deckert, Recording Secretary Debbie
Huebner
3.
Call MeetinLx 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.
Consider April 6, 2009 HRA Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE THE APRIL 6, 2009 HRA AGENDA
AS PRESENTED. MOTION CARRIED 4-0.
Consider April 6, 2009 Consent Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. MARCH 2, 2009 HRA MINUTES
3.2. CHECK REGISTER - APPROVED
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 4-0.
Open Mike — No one appeared for Open Mike.
5. Consider Resolution Authorizing Neighborhood Stabilization Program
Ms. Deckert provided background information regarding the Neighborhood Stabilization
Program (NSP), noting that the city s application for these funds was approved in the
amount of $593,820 on February 26, 2009. Funding was approved for Windsor Oaks, Trott
Brook, Park Pointe and Elk River Station; however, the Bluffs was not awarded any funding.
The HRA is asked to approve Resolution 09-01, authorizing receipt and implementation of
the Neighborhood Stabilization Program grant. Ms. Deckert stated that the next steps
include executing NSP funding agreements, initiating applicable federal requirements such as
environmental review, entering into the grant agreement with MNHF and developing the
Housing & Redevelopment Authority
April 6, 2009
Page 2
formal program implementation documents with Tri -CAP Agency. She noted that staff
anticipates implementing the program in late April or early May.
Ms. Lieser asked why the Bluffs was not approved for funding. Ms. Deckert stated that due
to the short time frame for use of the funds, the large number of unoccupied units, and the
fact that the units are not eligible for FHA all contributed to the denial.
MOTION BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE RESOLUTION 09-01,
AUTHORIZING RECEIPT AND IMPLEMENTATION OF NEIGHBORHOOD
STABILIZATION PROGRAM GRANT. MOTION CARRIED 4-0.
Update on Repairs to HRA Buildings at 716 and 720 Main Street
Ms. Mehelich stated that staff was able to obtain one estimate for repair of the 716 Main
Street building with a rubber membrane system at a cost of $27,000. She noted that after
adding in the repair of the parapet, the cost would be closer to $30,000. Repair of roof with
the rubber membrane would extend the life of the roof another 5 — 10 years.
Ms. Mehelich stated that staff is attempting to obtain quotes for repair and patching of the
roof, at an estimated cost of $5,000. The parapet also is in need of repair and that cost
would be an additional cost. Staff feels that repair and patching of the roof would allow the
Arts Alliance to continue using the building, and would buy additional time to see what
happens with the adjacent business. Ms. Mehelich stated that removal of the buildings now
would be very expensive and would likely result in damage to Elk River Meats building.
Chair Wilson stated that he would prefer the rubber membrane option, but felt it was very
expensive. Commissioner Motin asked if there was any type of price break to do both roofs.
Ms. Mehelich stated that the 720 Main Street building had a different type of roof, and any
leaks have been minor and repairable.
Commissioner Kuester asked what the cost was for the buildings to be removed. Ms.
Mehelich stated that three years ago the cost was estimated at $40,000, not including
addressing environmental concerns (asbestos). Also, the estimate did not include the cost of
preserving the meat market structure nor to finish as a parking lot.
Chair Wilson stated that it would make sense to wait until all three buildings could be
removed at once. He stated he supported making the necessary repairs to the 716 Main
Street building roof, until they know what will happen to the meat market.
Commissioner Motin stated that when the MetroPlains Development was studying the area,
the business wanted an unreasonable amount of money for their property. He stated that
the business is unique in a downtown area, in that they may still do slaughtering on site and
would not be allowed somewhere else.
Commissioner Lieser asked what the consequence would be if the repairs were made and
water leaked on the an -work Ms. Mehelich stated that the Arts Alliance has their own
insurance to cover liability for the artwork She noted that the city would only be liable if
theywere negligent in maintaining the property. Commissioner Motin concurred, stating
that the Arts Alliance was aware from the beginning that a problem exists. She stated that
staff recommends repair and patching of the roof.
Housing & Redevelopment Authority
April 6, 2009
Page 3
MOTION BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO AUTHORIZE THE REPAIR OF THE ROOF
AND PARPHET OF THE 716 MAIN STREET BUILDING OWNED BY THE
HRA, AT A COST NOT TO EXCEED $6,000. MOTION CARRIED 4-0.
7. Other Business
Commissioner Kuester asked what type of business is occupying the Jackson Place
commercial space, formerly occupied by a dry cleaning business. Ms. Mehelich stated that
staff has spoken with the tenant and has determined that the business is technically not a
pawn shop.
Ms. Mehelich noted that the special joint meeting of the City Council, Economic
Development Authority, and Housing and Redevelopment Authority will be held on
Monday, April 13, 2009 at 5:30 p.m. to discuss update of the Economic Development
Strategic Plan.
8. Adjournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 5:50 p.m.
Minutes prepared by Debbie Huebner.
Tina Allard `
City Cler
Stewart Wilson
Chair, Housing and Redevelopment Authority