12-07-2009 HRA MINMEETING OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 7, 2009
Members Present: Chair Wilson, Commissioners Lieser and Motin
Members Absent: Commissioners Kuester and Toth
Staff Present: Director of Economic Development Catherine Mehelich, Economic
Development Assistant Annie Deckert, Recording Secretary Debbie
Huebner
1. 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 December 7, 2009 HRA Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER LIESER TO APPROVE THE DECEMBER 7, 2009 HRA
AGENDA AS PRESENTED. MOTION CARRIED 3-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER LIESER AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. NOVEMBER 7, 2009 HRA MINUTES
3.2. CHECK REGISTER
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 3-0.
4. Open Mike — No one appeared for Open Mike.
5. Consider Approval of Lease Renew Terms with the Arts Alliance for 716 Main Street
Ms. Mehelich stated the HRA is asked to authorize entering into a lease agreement with the
Elk River Area Arts Alliance (ERAAA) for 716 Main Street. She explained that the renewal
lease shall be subject to the same terms as the current lease with the exceptions described in
the staff report to the HRA dated December 7, 2009.
Commissioner Motin asked for clarification on the HVAC units discussion. Ms. Mehelich
explained that both units are on 716 Main Street building. Commissioner Motin asked how
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December 7, 2009
Page 2
this expense fit into the terms of the lease agreement. Ms. Mehelich explained that any one-
time expenses over $1,000 will be shared at a 50/50 ratio. Commission Motin stated that
replacement of the HVAC units does not actually extend the life of the building. After
further discussion, it was the consensus to remove the following language in Bullet #4: "In
the event of a significant repair that extends the life of the building". Ms. Mehelich stated
that Finance Director Tim Simon suggested that a payment plan could be set up for certain
improvements. Commissioner Motin stated that the shared $7,000 HVAC expense could be
spread over two years, but he preferred that the Arts Alliance pay all at once if they can.
MOTION BY COMMISSIONER MOTIN, SECONDED BY COMMISSIONER
LIESER TO AUTHORIZE THE HRA CHAIR AND EXECUTIVE DIRECTOR
TO ENTER INTO A LEASE AGREEMENT WITH THE ELK RIVER AREA
ARTS ALLIANCE FOR 716 MAIN STREET, SUBJECT TO THE PREVIOUS
LEASE RENEWAL TERMS WITH THE FOLLOWING EXCEPTIONS:
• LEASE TERM SHALL BE UP TO 2 -YEARS WITH AUTOMATIC RENEWAL
AFTER 1 -YEAR UNLESS HRA ISSUES A 6 -MONTH NOTICE.
• LEASED PREMISES SHALL INCLUDE ONLY 716 MAIN STREET
BUILDING (FIRST FLOOR AND BASEMENT) FOR USES SPECIFIED IN
THE LEASE.
• ERAAA SHALL BE RESPONSIBLE FOR REIMBURSING THE HRA'S
INSURANCE COST RELATIVE TO THE LEASED PREMISES -
$109.08/MONTH FOR PERIOD 1-1-2010 TO 7-1-2010. HRA WILL NOTIFY
ERAAA IN WRITING OF THE INSURANCE PREMIUM DUE THE
FOLLOWING 6 -MONTHS THEREAFTER.
• ERAAA SHALL BE RESPONSIBLE FOR ROUTINE MAINTENANCE AND
UTILITIES. COST FOR STRUCTURAL OR MECHANICAL REPAIRS AND
REPLACEMENTS NECESSARY TO OCCUPY THE BUILDING IN AN
AMOUNT OVER $1,000 SHALL BE SHARED 50/50 BETWEEN THE HRA
AND ERAAA. THE HRA WOULD ALLOW THE ERAAA PORTION TO BE
AMORTIZED AND PAID BACK OVER A NEGOTIATED PERIOD OF
TIME.
MOTION CARRIED 3-0.
6. Discuss HRA Goals and Projects for 2010
Ms. Mehelich reviewed the HRH's 2009 goals and projects and the proposed goals and
projects for 2010 as outlined in the staff report to the Commission dated December 7, 2009.
Chair Wilson stated that he would like the HRA to consider the homeless needs in Elk
River, and what role, if any, the HRA could possibly have in addressing the issue.
Commissioner Lieser concurred. Commissioner Motin stated he also concurred, but felt the
topic may be more of a social issue.
Commissioner Motin stated that he is aware of a hotel in the city that has requested
converting the business to apartments. Chair Wilson stated it may be good for the HRA to
look at the city's inventory to determine their needs for this type of housing. Ms. Mehelich
stated that a request for tax credit support for affordable apartments was recently made to
the City Council, and she asked if the HRA would like to see these types of requests when
they come in. Chair Wilson stated he felt the HRA would like to be informed about them.
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December 7, 2009
Page 3
Commissioner Motin added that if a request includes TIF or tax abatement, the HRA needs
to see if the request fits the current program.
7. Other Business - Update on Elk River Neighborhood Stabilization Program
Ms. Deckert stated that the property sale at 10827 181st Lane has closed. She noted that no
new applications have been received for down payment assistance or purchase rehab. She
reviewed information distributed to the EDA regarding the number of foreclosures in Elk
River, Sherburne County, and other Minnesota counties. She noted that the number of
Sherburne County foreclosures in the third quarter of 2008 was 227 and has gone down to
174 in the third quarter of 2009, a reduction of -24 percent.
8. Adjournment
There being no other business, Chair Wilson adjourned the meeting.
The meeting of the Elk River Housing and Redevelopment Authority adjourned at 5:53 p.m.
Minutes pr ared by D i Huebner.
Tina Allard
City Clerk
Stewart Wilson
Chair, Housing and Redevelopment Authority