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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 Housing & Redevelopment Authority November 2, 2009 Page 2 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. ------------ Commissioner Lieser arrived at this time (5:35 p.m) ------------- 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. Housing & Redevelopment Authority November 2, 2009 Page 3 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 Page 4