11-02-2009 HRA MINMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER 2, 2009
Members Present: Chair Wilson, Commissioners Kuester, Lieser, Motin and Toth
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, 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 November 2. 2009 HRA Agenda
MOVED BY COMMISSIONER TOTH AND SECONDED BY COMMISSIONER
KUESTER TO APPROVE THE NOVEMBER 2, 2009 HRA AGENDA AS
PRESENTED. MOTION CARRIED 4-0.
Consider Consent Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. AUGUST 3, 2009 HRA MINUTES
3.2. CHECK REGISTER
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 4-0.
4. Qpen Mike - No one appeared for Open Mike.
Discuss HRA Buildings at 716 and 720 Main Street
Ms. Mehelich stated that the roof repair at 716 Main Street was completed bythe end of
August, at a cost under $3,000. She noted that repairs were also made on the two HVAC
units on this building at a cost of $2,165. Maintenance staff has advised that these units will
require replacement next year if the building is continued to be occupied at a cost of
approximately $7,000.
Ms. Mehelich stated that the Arts Alliance lease will expire December 31, 2009. She stated
that the HRA has maintained a positive relationship with the Arts Alliance, and has added
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November 2, 2009
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vitality to the downtown. She explained that the Arts Alliance is interesting in renewing their
lease and staff recommends renewing the lease for up to two years. Ms. Mehelich noted that
the cost of repairs, insurance and utilities would be negotiated with them
David Raymond, Arts Alliance Board Chair, introduced John Stander, Executive Director of
the Arts Alliance. Mr. Raymond stated that the Alliance is non-profit, but has a slight
positive balance at this time. He stated that their upcoming budget looks positive, assuming
the anticipated grants will be received.
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Commissioner Lieser arrived at this time (5:35 p.m)
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Mr. Raymond stated that the Arts Alliance is interested in negotiating some of the expenses
with the city. He noted they are aware that plans for the long term use of the building are
uncertain. He explained that the Arts Alliance would like to stay in the downtown.
Commissioner Kuester asked if the Arts Alliance is currentlyusing both buildings. Mr.
Raymond stated no, other than for storage, but they are looking at offering more classes and
could use more space. Commissioner Kuester questioned if the Arts Alliance profits could
be increased by offering more classes. Mr. Raymond stated yes.
Commissioner Toth asked if the 720 Main Street building needed improvements. Ms.
Mehelich stated that the restrooms are an issue, and is subject to review and discussion with
the city's building official Ms. Mehelich stated there is also a concern for asbestos in the tiles
at 720 Main.
Commissioner Toth stated he recalled there was an issue with the stairwell. Mr. Raymond
stated yes, the stairwell needs to be addressed He noted that there is a hallway connecting
the two buildings, so that the restrooms at 716 Main could possibly be accessible.
Chair Wilson asked if the HVAC unit at 720 was functioning. Ms. Mehelich stated yes, at a
minimal level. Chair Wilson asked if she was aware of any potential problems. Ms.
Mehelich stated that she has not heard of any concerns from the city's maintenance
department.
Commissioner Motin noted that the reason the EDA is paying insurance for the buildings is
because they are being rented out for a different use, other than as a public building. If they
not rented out, the buildings would be covered under the city's "blanket" policy.
Chair Wilson asked if the Commission was comfortable having staff negotiate a lease with
the Arts Alliance. Commissioner Motin stated he had no problem with a year-to-year lease,
but had some concern with spending money on the buildings. Commissioner Toth
concurred.
Mr. Raymond stated they are not looking at the building as a permanent option, but that
they would like to stay as long as they can.
Commissioner Lieser asked if an annual lease would work better for the Arts Alliance for
budgeting purposes. Mr. Raymond stated theywould like to look at a 2 -year lease. He
stated that are looking for ways to reduce the annual costs for the building. Ms. Mehelich
noted that if a substantial repair is required, the city has the option to terminate the lease.
She stated that at least one HVAC unit needs to be replaced, and it may be cost-effective to
replace both units at the same time.
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November 2, 2009
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Commissioner Motin stated that he suggested staff speak with Tim Simon, Finance Director,
and it may be an option to spread out the $7,000 expense. Mr. Raymond stated it also may
be an option to obtain a donation or grant to help cover the costs.
Chair Wilson stated that based on comments received, staff is authorized to negotiate a lease
with the Arts Alliance for another year. He noted that the Commission will act on the lease
at next month's meeting.
6. Update on Elk River Neighborhood Stabilization Program
Ms. Mehelich provided an update on the Elk River NSP activities funded to date, including
down payment assistance, purchase rehabilitation assistance, acquisition rehabilitation, and
recent changes in the NSP Program to the targeted neighborhoods and down payment
assistance. Ms. Mehelich also updated the Commission on staff's current activities regarding
the NSP program and foreclosure prevention.
Commissioner Toth questioned the inclusion of Grandview Addition in the targeted
neighborhoods list. Ms. Mehelich stated that the same income and discount appraisal
guidelines would be applied to homes in this area as they do to other targeted
neighborhoods.
Commissioner Lieser asks who markets the homes for Tri -Cap. Ms. Mehelich stated that
Tri -Cap will select a realtor themselves.
7. Other Business
Northstar Corridor
Commissioner Motin noted that the grand opening of the Northstar Corridor commuter rail
will be held on Saturday, November 14, 2009 beginning at 10:30 a m He stated that
approximately 200 tickets are still available (one per person). The tickets will need to be
turned in to get a boarding pass by 11:30 a m
Basic Outreach
Commissioner Lieser explained that Basic Outreach is a faith -based non-profit organization
which provides emergency shelter by working with local churches. She stated that the beds
and equipment to operate the shelters are portable and can travel from church to church.
She stated the shelters open at 5:00 p.m. to provide showers and a warn place to sleep for
the night. Ms. Lieser stated that Sherburne County currently sends homeless people in Elk
River to St. Cloud.
Chair Wilson stated that homelessness in Elk River is an issue the HRA could have as a goal
to tackle in the future.
Commissioner Lieser stated that currently Central Lutheran and United Methodist churches
have volunteered to participate in the program.
Ms. Mehelich asked how the services would be advertised. Commissioner Lieser stated that
they hope to have coverage in the local newspaper, but for now, would be word of mouth.
She stated that law enforcement currently refer people to Social Services at Sherburne
County. Commissioner Lieser noted that Guardian Angels currently provides low cost
housing to seniors over the age of 62.
Housing & Redevelopment Authority
November 2, 2009
8. Adjournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 628 p.m.
Minutes prepared by Debbie Huebner.
Tina Allard
City Clerk
Stewart Wilson
Chair, Housing and Redevelopment Authority
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