08-03-2009 HRA MIN - Laserfiche WebLink

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Housing & Redevelopment Authority August 3, 2009 Page 2 Ms. Johnson reviewed the proposed 2010 revenues and expenditures, as noted in the report to the HRA dated August 3, 2009. She noted that $30,000 has been included in the budget for expenditures for completing the downtown redevelopment plan. Also, she noted that there are some very minimal costs for maintenance, insurance costs, etc. related to the 716 and 720 Main Street buildings. Ms. Johnson noted that $82,850 has been set aside for future HRA projects. She stated that the HRA could consider adjusting that amount if they choose. Ms. Johnson explained that there is room to slightly increase the amount, but that if they chose to decrease the amount, the levy would go down considerably. Commissioner Toth asked what is in the fund now. Ms. Johnson stated that there is approximately $348,000 available for projects in the fund at the present time. Commissioner Mom* asked how the $30,000 figure for the downtown was arrived at, compared to what was spent in 2006 and 2007. Ms. Johnson stated that the figure is an estimate based on past expenditures, and includes funding for consultant fees and costs for communication with the public. Ms. Mehelich referenced page 2 in the 2006 and 2007 Actual Expenditures in the budget worksheet for this item She explained that professional services for Ehlers & Associates and Hoisington-Koegler were incurred in those years, and since the city does not have a community development director at this time, they anticipate hiring a planning consultant to provide expertise in completing the redevelopment plan. Chair Wilson stated he did not anticipate the HRA would want to raise the levy. Commissioner Motin stated he was not in favor of raising the levy, but that he supported adding to the project reserve fund. MOTION BY COMMISSIONER MOTIN, SECONDED BY COMMISSIONER LIESER TO APPROVE RESOLUTION 09-03, A RESOLUTION ESTABLISHING THE TAX LEVY FOR THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY FOR COLLECTION IN 2010. MOTION CARRIED 4-0. 6. Update on Elk River Neighborhood Stabilization Program Ms. Deckert stated that the first application for the Elk River NSP program closed last week for the $5,000 in down payment assistance. She noted that this applicant also received $10,000 in down payment assistance from the Greater MN Housing Fund. A second application will be closing on August 6th. Staff received two additional applications; one was not in a target neighborhood, but the other application is being processed. Ms. Deckert stated that no applications have been received for purchase rehabilitation assistance at this time. Staff continues to work with Tri -CAP on identifying homes to rehab and resell, but this has been a challenge since homes move quickly on the market. Also, she noted that several banks are not accepting purchase agreements with contingencies. Ms. Deckert stated they are continuing to work with MN Housing Finance Agency to streamline the process of acquisition and rehab. Staff will be attending two-day training in September which will address challenges in the NSP funding process. She noted there will be a 6 -month check-in with MN Housing in September to discuss the program's progress.