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HomeMy WebLinkAbout08-20-2010Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting August 20, 2010 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER Commissioner Torri Johnson called the meeting to order at 7:36am. 2. ROLL CALL Members Present: Commissioners Greg Belting, Jackie Entsminger, Torri Johnson and Dan Larson Members Absent: Chair Gary Meehlhause, Vice Chair Wagner-Harkonen and Commissioner Jason Helgemoe Staff Present: Community Development Director Ken Roberts & Economic Development Specialist Heidi Steinmetz 3. APPROVAL OF AUGUST 20, 2010 AGENDA Motion/Second: Commissioner Entsminger moved and Commissioner Belting seconded the approval of the August, 2010 EDC agenda. Motion Carried: 4 Ayes 0 Nays 4. APPROVAL OF JULY 16, 2010 EDC MINUTES Commissioners Johnson and Belting did not attend the July 16th meeting, therefore the consideration for approval of the July 16th minutes was tabled until the next meeting. 5. SPECIAL BUSINESS There was no special EDC business. 6. EDC BUSINESS A. Continue Discussion About Housing Rehabilitation Program Options Economic Development Specialist Heidi Steinmetz told the EDC that on July 6th, the City Council discussed the possibility of amending the EDA's Housing Replacement Program to eliminate the home acquisition option of the program. The Council showed interest in developing concepts for a housing rehabilitation program. On August 9th, the EDA reviewed five housing rehabilitation concepts and narrowed them down to three. The three concepts are included in today's EDC packet. Ms. Steinmetz provided a brief overview of each concept and asked the EDC to provide input on the three concepts. The EDC's input will be forwarded to the Council for their discussion at the Sept. 6th Work Session. The concepts are: EDC Minutes August 20, 2010 Page 2 of 3 Concept 1: Mounds View Residential Rehabilitation/Code Enforcement Deferred Loan Concept 2: Mounds View "Immediate Need" Deferred Loan Concept 3: Mounds View Foreclosure Recovery Program Ms. Steinmetz added that the City has an annual contract with the Housing Resource Center to administer several home improvement loans available to Ramsey County residents. The Housing Resource Center also offers free home remodeling advice to Mounds View homeowners. Commissioner Johnson asked if there are income limits to the free services offered by the Housing Resource Center. Ms. Steinmetz said there are no income limits. Commissioner Johnson asked what constitutes a "housing developer" in the sample criteria for Concept 3. Ms. Steinmetz answered that a "housing developer" would be considered the homeowner. Community Development Director Ken Roberts added that the homeowner probably bought the foreclosure from a bank. Ms. Steinmetz added that city staff, the EDA or the Council have not discussed these details yet. Mr. Roberts added that if the EDA were to approve Concept 3, the City would "vett" any developer that would try and do improvements on a foreclosed home in Mounds View. Commissioner Belting asked if the EDA transfers the $150,000 of Housing Replacement Program Tax Increment Financing (TIF) funds towards forming a new Mounds View home improvement loan program; would there be more TIF available to fund a similar program the following year? Ms. Steinmetz said there is unobligated TIF available that the EDA could choose to use towards Mounds View's housing needs. Mr. Roberts reminded the EDC, however, that the Council's first priority is to use the EDA's TIF funds towards the Street Project. Ms. Steinmetz urged the EDC, EDA and City Council to remember that traditional Economic Development involves job creation and housing assistance. Commissioner Belting agreed. Commissioner Belting asked how the Housing Resource Center administers loans, specifically if the funds are released before the work is completed. Ms. Steinmetz said that the Housing Resource Center administers loans like banks do. Mr. Roberts added that the funds would be paid to the contractor. Commissioner Larson said that he thinks that the EDA should add a demolition loan concept to their list of concepts. He added that homeowners are probably not going to make $20,000 of improvements to a $90,000 house. He said that it makes more sense to remove a blighted home and replace it with a larger, more valuable home. The EDC agreed and said that the City should develop criteria for determining which homes would be eligible for demolition. Commissioner Belting said that he likes all three concepts and $150,000 seems like a reasonable amount of funding for this program but that the City will not know the proper amount of funding is needed until the program is implemented. Commissioner Entsminger said that she does not agree with forgiving loans. Commissioner Belting agreed. EDC Minutes August 20, 2010 Page 3 of 3 Motion/Second: Commissioner Belting moved and Commissioner Larson seconded a motion of support towards the development of a housing assistance program containing a mix of loan concepts, including a demolition loan option. In addition, the EDC supports an amount of $150,000 of funding towards this program until further review of the program. Motion Carried: 4 Ayes 0 Nays 7. REPORTS OF COMMISSIONERS Commissioner Johnson reminded everyone that Festival in the Park is tomorrow. She added that school is about to start and hopes that we keep safety in mind. Ms. Steinmetz added that the Police Department provided a full page of back to school safety tips in the Fall Mounds View Matters. Commissioner Johnson added that she has been using the trails along County Road 10 lately and that they are terrific. 8. REPORTS OF STAFF Mr. Roberts provided a verbal updates for Item 8A (update on Select Senior Living and Coventry Senior Living projects. Commissioner Johnson asked why there is a crane on the residential property along County Road 10 near Woodale. Ms. Steinmetz said that the landowner recently demolished the vacant home on the property Ms. Steinmetz provided verbal updates for Items 8B, 8C & 8D (Mounds View business news, available business sites in Mounds View and upcoming events). Commissioner Johnson asked how many foreclosures are in Mounds View. Ms. Steinmetz said there are currently about 110 foreclosures. Commissioner Johnson mentioned that there would be a 5K fun run and pancake breakfast on Saturday, Sept. 18th. The event is a fundraiser for the local youth hockey association. 9. UPCOMING EDC MEETING The next regular EDC meeting is scheduled for Friday, September 17, 2010 at 7:30am. 10. ADJOURNMENT There being no further business, the August 20, 2010 meeting adjourned at 8:36am. Respectfully submitted, A Heidi Steinmetz, Economic Development Specialist