On the agenda: Elk River Housing and Redevelopment Authority Meeting — alPr (Sep 8)

Housing and Redevelopment
Authority

Tuesday, September 8, 2026
5:30 PM
Elk River City Hall

Regular Meeting
&
Work Session
Agenda
▪ Regular meeting in Council Chambers
▪ Work Session meeting in Upper Town Conference Room immediately following regular meeting
1.

CALL MEETING TO ORDER

2.

PLEDGE OF ALLEGIANCE

3.

CONSIDER AGENDA

4.

CONSENT AGENDA
Considered to be routine and noncontroversial and will be approved by one motion. There will be no separate discussion of
these items unless there is a request to remove the item from the consent agenda to the regular agenda.

5.

4.1

DRAFT Minutes - August 3, 2026

4.2

Check Register

4.3

Balance Sheet

4.4

Revenue/Expenditure Reports

OPEN FORUM
An opportunity to provide comments and feedback regarding items not on the agenda. Information provided in Open Forum
will not be discussed at this meeting; rather, the information will be referred to staff and/or scheduled for discussion at a
future meeting.

6.

GENERAL BUSINESS
Items in which the information is presented by city staff or consultants, then deliberation and action occur. General Business
items are not opportunities to receive or provide public input. However, the presiding officer may, at its sole discretion,
solicit public feedback.

7.

6.1

2027 Budget Approval and Levy Recommendation

6.2

Downtown Furniture Placement

6.3

Housing Rehabilitation Loan Program Update

OPEN DISCUSSION
This section is reserved for the board and staff to discuss relevant topics, updates, and other non-action items of the board.

8.

MOTION TO ADJOURN REGULAR MEETING

9.

WORK SESSION
Work Sessions are less formal meetings to encourage dialog. Official action or votes are not typically taken. At the
conclusion of a discussion, a simple consensus provides staff direction for execution of the item. This portion of the agenda
is audio recorded but not video recorded or broadcast. Work Sessions are open to the public; however, visitors who wish

Page 1 of 42

to provide input must be invited by the presiding officer, assume a seat at the discussion table and provide their full name
and address for the official record.

10.

9.1

Downtown Hanging Flower Baskets and Fixtures

9.2

Land Acquisition Opportunity — Mississippi Road

MOTION TO ADJOURN

The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Page 2 of 42

Meeting of the Housing and
Redevelopment Authority
Held at the Elk River City Hall
Monday, August 3, 2026

Members Present:

Chair Nate Ovall, Commissioner John Dietz, Commissioner Lynn Caswell,
Commissioner Mel Beaudry, Commissioner Dave Klutch

Members Absent:

None.

Staff Present:

Economic Development Director Brent O'Neil, Economic Development Specialist
Joshua Mollan, and Recording Secretary Katie Porath

1.

CALL MEETING TO ORDER
Pursuant to due call and notice thereof, the meeting was called to order at 5:30 p.m.

2.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.

3.

CONSIDER AGENDA
Moved by Commissioner Dietz and seconded by Commissioner Beaudry to approve the
agenda. Motion carried 5-0.

4.

CONSENT AGENDA
Moved by Commissioner Caswell and seconded by Commissioner Klutch to approve the
following consent items as outlined in their respective staff reports. Motion carried 5-0.

5.

4.1

DRAFT Minutes - July 6, 2026

4.2

Check Register

4.3

Balance Sheet

4.4

Revenue/Expenditure Reports

4.5

Satisfaction of Mortgages - #19-015217 and #19-016564

OPEN FORUM

Page 3 of 42

Housing and Redevelopment Authority Minutes
August 3, 2026
---------

Page 2 of 4

No one appeared for open forum.
6.

GENERAL BUSINESS
6.1

Presentation - Garden Gem Awards

Mr. Mollan presented engraved landscape rocks to the winners of the 2026 Garden Gem Awards in the
following categories:
Rural - Jill Varty
Townhome - Martha Quesenberry
Single Family Home built before 2000 - Cassandra Miller
Single Family Home built 2000 or later - Paul and Sandy Peterson
6.2

Housing Rehabilitation Loan Program Update

Mr. Mollan reviewed that there were no new loans in the latest period. However, he has recently
reviewed a new project and it will likely be on the September report. He added that the Center for
Energy and Environment (CEE) has closed two loans year-to-date from Elk River residents from HRA's
program and MN Housing Fix up Fund.
7.

OPEN DISCUSSION
Mr. Mollan stated the quarterly report from Main Street Family Services on their Statewide Affordable
Housing Aid (SAHA) allocation has shown that $10,470 was issued to 13 different families.
Mr. Mollan gave an update on a code enforcement property. Staff has sent a final offer to purchase the
property. If there is no response, code enforcement will work to clean up the property.
Mr. O'Neil reviewed that the HRA had asked about the liquor buying habits of Elk River residents using
the Placer.ai software. He will bring more details to a future meeting.
Mr. O'Neil stated that there has been minimal response to the conversations with owners of properties
in the "Upper Town" area. One developer has asked about developing apartments in that area but there
is currently a moratorium in effect on multi-family housing in Elk River.
Mr. O'Neil gave an update on the partnership with Habitat for Humanity. The organization has secured
a property in Becker for their first home built at the Elk River high school. There was some challenge
finding a suitable property in Elk River to use for the project but staff will continue to work on this for
future homes. The Commission could consider putting some funding toward the property cost to lower
the cost burden. $20,000 has been earmarked using Statewide Affordable Housing Aid program.
Mr. O'Neil asked the Commission to consider if they would like to financially contribute toward any
amenities to the downtown area during the main street projects scheduled to begin next year. He will
bring the discussion to a future meeting.

8.

MOTION TO ADJOURN REGULAR MEETING

Page 4 of 42

Housing and Redevelopment Authority Minutes
August 3, 2026
---------

Page 3 of 4

Moved by Commissioner Klutch and seconded by Commissioner Caswell to adjourn the
meeting. Motion Carried 5-0.
The regular meeting adjourned at 5:51 p.m. Chair Ovall called the work session to order at 5:54 p.m.
9.

WORK SESSION
9.1

2027 Budget Workshop

Mr. O'Neil reviewed the budget stating there were no substantial changes and proposing a 2.1%
increase.
The Commission discussed budgeting money to assist Habitat for Humanity in purchasing property for
the houses built at the high school.
Chair Ovall asked if staff has networked with cities who have done redevelopment, such as Champlin,
and how they acquired properties and financed the redevelopment. Mr. O'Neil stated that he has
learned some information from cities that share similar attornies. Chair Ovall would be interested in a
rubric to help make decisions on the right mix of cash versus financing.
Mr. O'Neil discussed whether the fund balance should be a budget goal or a policy. While he prefers a
policy, having it as a budget goal gives the Commission flexibility to adjust it each year as needed.
Commissioner Dietz asked if staff has looked into acquiring the remaining residential houses from the
railroad tracks to Highway 169 on Main Street. Mr. O'Neil stated there had been some discussion in
the past but the board had prioritized using available funds elsewhere, such as areas of downtown,
should the opportunity present itself.
Mr. O'Neil suggested that, if something comes up for sale on Main Street, it could be paid for from the
fund balance rather than budgeting for it.
Commissioner Dietz mentioned that the American Legion had talked about being willing to relocate if a
good location was available.
Commissioner Beaudry asked about the Fire Station #1 location. Mr. O'Neil stated that the property
would likely be sold for reuse or redevelopment when the new Station #1 is constructed, and the City
Council would make that decision.
The Commission was in agreement with the proposed 2.1% increase and the budget will be brought to
the September HRA meeting for approval.
10.

MOTION TO ADJOURN
Moved by Commissioner Beaudry and seconded by Commissioner Caswell to adjourn the
meeting. Motion carried 5-0.
The meeting adjourned at 6:15 p.m.

Page 5 of 42

Housing and Redevelopment Authority Minutes
August 3, 2026
---------

Page 4 of 4

Minutes prepared by Katie Porath.

_________________
Nate Ovall, Chair

_____________________
Justin Dunford, City Clerk

Page 6 of 42

Page 7 of 42

CITY OF ELK RIVER
Balance Sheet
August 31, 2026
Fund 910 - HRA

Assets
910-1000
910-1190
910-1193
910-1194
910-1195
910-1310

Cash - HRA
Loans Receivable
Forgivable Loan
Allow for Forgivable Loan
Note Receivable
Due From Other Funds

1,872,409.13
195,162.53
75,000.00
(75,000.00)
400,000.00
138,809.03

Total Assets
Fund Equity
910-2400

Fund Balance
Revenues over Expenditures - YTD

2,606,380.69

2,464,862.29
141,518.40

Total Fund Equity

2,606,380.69

Total Liabilities & Equity

2,606,380.69

Page 8 of 42

CITY OF ELK RIVER
Revenues with Comparison to Budget
For the Month Ending August 31, 2026
Fund 910 - HRA

910-3-0000-3111
910-3-0000-3621

Period Actual

YTD Actual

Budget

Unearned

Property Taxes
Interest Income

5,545.45

Total Fund Revenue

5,545.45

PCNT

240,692.69
43,969.96

469,450.00
40,000.00

(228,757.31)
3,969.96

51%
110%

284,662.65

509,450.00

(224,787.35)

56%

Page 9 of 42

CITY OF ELK RIVER
Expenditures with Comparison to Budget
For the Month Ending August 31, 2026
Fund 910 - HRA

910-4-6100-4101
910-4-6100-4103
910-4-6100-4104
910-4-6100-4105
910-4-6100-4107
910-4-6100-4108
910-4-6100-4109
910-4-6100-4112
910-4-6100-4201
910-4-6100-4219
910-4-6100-4304
910-4-6100-4319
910-4-6100-4331
910-4-6100-4349
910-4-6100-4359
910-4-6100-4401
910-4-6100-4404
910-4-6100-4409
910-4-6100-4433
910-4-6100-4510
910-4-6100-4530
910-4-6100-4721
910-4-6100-4735

Period Actual

YTD Actual

Budget

Unearned

Regular Pay
Part-time Pay
PERA
FICA
Medicare
Insurance
Workers Comp
PFML
Office Supplies
Operating Supplies
Legal Fees
Professional Services
Travel, Conferences & Schools
Advertising/Marketing
Publishing
Bldg Repair/Maint Services
Software Services
Contractual Services
Dues & Subscriptions
Land
Improvement Project Contract
Transfer-General Fund
Transfer-EDA

3,001.14
40,550.00
4,500.00

Total Fund Expenditures
Net Revenue Over Expenditures

40,928.77
2,175.00
3,068.85
2,547.37
595.55
6,048.00
261.00
194.17
82.30
5,932.00
6,598.00
5,443.68
24,219.56
40,550.00
4,500.00

92,000.00
4,500.00
6,950.00
6,000.00
1,400.00
20,750.00
450.00
500.00
100.00
3,000.00
30,000.00
1,000.00
9,750.00
500.00
500.00
7,500.00
27,000.00
2,500.00
200,000.00
50,000.00
40,550.00
4,500.00

(51,071.23)
(2,325.00)
(3,881.15)
(3,452.63)
(804.45)
(14,702.00)
(189.00)
(305.83)
(17.70)
5,932.00
(3,000.00)
(30,000.00)
(1,000.00)
(3,152.00)
(500.00)
(500.00)
(2,056.32)
(2,780.44)
(2,500.00)
(200,000.00)
(50,000.00)
-

44%
48%
44%
42%
43%
29%
58%
39%
82%
0%
0%
0%
0%
68%
0%
0%
73%
90%
0%
0%
0%
100%
100%

48,051.14

143,144.25

509,450.00

(366,305.75)

28%

(42,505.69)

141,518.40

141,518.40

0%

-

PCNT

Page 10 of 42

Request for Action

To
Housing and Redevelopment Authority

Item Number
6.1

Meeting Date
September 8, 2026

Prepared By
Brent O'Neil, Economic Development Director

Item Description
2027 Budget Approval and Levy Recommendation

Reviewed by
Brent O'Neil
Cal Portner

Action Requested
Approve, by motion, the attached resolution adopting the budget for 2027 and recommending $480,200 be
included in the 2027 levy.

Background/Discussion
The final proposed budget for 2027 is unchanged from the budget workshop in August. Total expenditures
are slated to increase by $10,750 to $520,200, an increase of 2.1% from 2026. With interest income budgeted
flat at $40,000, the levy would also increase by $10,750 to $480,200, or 2.3%.
The budget changes year-over-year are relatively minor and do not reflect any noteworthy changes to
programming; however, it is worth noting that the budget continues to include $250,000 to plan for future
property acquisition and redevelopment.
This action sets the budget for 2027, and recommends to the City Council that it include $480,200 into the
Preliminary Levy, which will be considered later in September.
Financial Impact
The budget for 2027 will be set at $520,200.
Mission/Policy/Goal
The HRA adopts its annual budget prior to September 30 each year.
Attachments
1.
2027 HRA Budget
2.
HRA 2027 Goals and Measures
3.
Resolution 26-01 2027 HRA Budget

The Elk River Vision
A resilient, welcoming, and thriving community that leads through innovation, meaningful
engagement, exceptional service, and responsible planning for future generations.

Page 11 of 42

HRA
2023
ACTUAL
REVENUES
Property Taxes
Federal grant
MV Credit
Development Fee
Building Rent
Interest Income
Refunds & Reimbursements
Miscellaneous Revenue
Sale of Assets
Transfers
Transfer - TIF

2025
ACTUAL

2026
BUDGET
469,450
0
0
0
0
40,000
0
0
0
0
0
509,450

Total Revenues

398,899
0
236
0
0
7,651
0
0
0
0
0
406,786

438,820
0
215
0
0
13,581
0
5,945
0
0
0
458,561

439,747
0
230
0
0
49,921
0
0
0
0
0
489,899

Total Personal Services

77,319.31
0.00
5,798.93
4,784.79
1,119.00
16,070.40
314.00
0.00
105,406.43

83,234.70
0.00
6,242.58
5,152.55
1,205.00
19,137.60
426.75
0.00
115,399.18

87,179.90
2,925.00
6,542.72
5,414.12
1,268.60
12,283.20
348.00
0.00
115,961.54

Total Supplies

27.00
0.00
1,092.00
1,119.00

0.00
0.00
45.60
45.60

154.64
0.00
0.00
154.64

100.00
0.00
0.00
100.00

975.00

4,251.00

2,461.50

3,000.00

Personal Services
Regular Pay
Part-time Pay
PERA
FICA
Medicare
Insurance
Workers Comp
PFML

Supplies
Office Supplies
Fuels & Lubes
Operating Supplies

Services & Charges
Legal Fees

2024
ACTUAL

6/30/2026
2027
YTD
PRELIMINARY

Increase/
(Decrease)

%
Change

0
0
0
0
0
27,312
0
0
0
0
0
27,312

480,200
0
0
0
0
40,000
0
0
0
0
0
520,200

10,750
0
0
0
0
0
0
0
0
0
0
10,750

2.3%
0.0%
0.0%
0.0%
0.0%
0.2%
0.0%
0.0%
0.0%
0.0%
0.0%
2.1%

92,000.00 33,991.69
4,500.00 1,875.00
6,950.00 2,548.57
6,000.00 2,117.27
1,400.00
494.96
20,750.00 5,040.00
450.00
174.00
500.00
161.61
132,550.00 46,403.10

107,850.00
4,500.00
8,100.00
6,900.00
1,650.00
12,350.00
400.00
550.00
142,300.00

15,850
0
1,150
900
250
(8,400)
(50)
50
9,750

17.2%
0.0%
0.0%
15.0%
17.9%
-40.5%
-11.1%
0.0%
7.4%

82.30
0.00
5,932.00
6,014.30

200.00
0.00
0.00
200.00

100
0
0
100

100.0%
0.0%
0.0%
100.0%

0.00

3,000.00

0

0.0%

Page 12 of 42

Professional Services
Postage
Travel, Conferences & Schools
Advertising/Marketing
Publishing
Insurance
Utilities
Bldg Repair/Maint Services
Software Services
Contractual Services
Dues & Subscriptions
Miscellaneous
Total Services & Charges

0.00
1.30
52.27
9,109.76
189.20
0.00
176.50
5,534.60
7,481.50
91,685.80
2,464.00
0.00
117,669.93

800.00
10.69
0.00
7,525.91
77.40
0.00
0.00
2,000.00
4,713.36
30,035.00
0.00
0.00
49,413.36

0.00
2.86
83.83
7,160.10
172.00
0.00
0.00
3,001.14
5,211.00
24,724.56
0.00
0.00
42,816.99

Total Capital Outlay

0.00
0.00
0.00

0.00
0.00
0.00

0.00
36,500.00
0.00
4,000.00
40,500.00

0.00
37,500.00
0.00
4,000.00
41,500.00

Capital Outlay
Land
Improvement Project Contract

Transfers Out
Transfers
Transfer-General Fund
Transfer-Capital Outlay Reserv
Transfer-EDA

TOTAL HRA EXPENDITURES
TOTAL REVENUES OVER/(UNDER) EXPENDITURES

30,000.00
0.00
0.00
0.00
1,000.00
0.00
9,750.00 6,598.00
500.00
0.00
0.00
0.00
0.00
0.00
500.00
0.00
7,500.00
0.00
27,000.00 18,085.28
0.00
2,500.00
0.00
0.00
81,750.00 24,683.28

30,000.00
0.00
1,000.00
10,500.00
500.00
0.00
0.00
500.00
5,500.00
28,000.00
2,000.00
0.00
81,000.00

0
0
0
750
0
0
0
0
(2,000)
1,000
(500)
0
(750)

0.0%
0.0%
0.0%
7.7%
0.0%
0.0%
0.0%
0.0%
-26.7%
3.7%
-20.0%
0.0%
-0.9%

0.00
0.00
0.00

200,000.00
50,000.00
250,000.00

0.00
0.00
0.00

200,000.00
50,000.00
250,000.00

0
0
0

0.0%
0.0%
0.0%

0.00
39,000.00
0.00
4,000.00
43,000.00

0.00
40,550.00
0.00
4,500.00
45,050.00

0.00
0.00
0.00
0.00
0.00

0.00
42,200.00
0.00
4,500.00
46,700.00

0
1,650
0
0
(1,650)

0.0%
0.0%
0.0%
0.0%
3.7%

264,695.36 206,358.14 201,933.17 509,450.00 77,100.68

520,200.00

10,750

2.1%

142,091

252,203

287,966

0

(49,789)

0

Page 13 of 42

Performance Measures & Goals for 2027
Division:

Housing and Redevelopment

Completed by:
Date:

Brent O'Neil, Josh Mollan
June 1, 2026

Performance Measure

2023 Actual

2024 Actual

2025 Actual

2026 Estimated

2026 YTD

2027 Projected

Number of HRA Rehab Loan
applications approved

4

2

2

5

1

4

Rehab Loan Funds Outstanding
(year-end)

$162,000

$195,000

$187,000

$250,000

$210,000

$200,000

Residential Property Reinvestment (by permit value)

$19,700,000

$8,500,000

$32,000,000

$10,000,000

$22,000,000

$25,000,000

Number of Multi-family Units
Added (completions)

90

142

0

55

0

55

Division Goal

Goal Objective/Task

Set target fund balance levels to maintain sufficient
Set a target HRA fund balance based on the following: minimum operating reserve - 50% of budget; property
reserves and availability of funds in anticipation of current acquisition; new programs (loans, grants) - $2,500,000. Target fund balance: $2,750,000. 5/31/26 fund balance:
and future large expenditures.
$2,400,000.
Promote preservation of housing stock

Promote investment in residential properties within Elk River and promote the HRA Rehab Loan Program. Identify
dilapidated properties and work with city code enforcement. Protect and strengthen rental properties.

Promote a vital downtown

Work actively with the Downtown Elk River Business Association (DERBA). Work with DERBA to develop a
beautification plan for the Main Street Corridor and/or engagement of redesign for Main Street. Promote and/or
modify the Downtown Facade Improvement microloan program. Pursue strategic acquisition and sale of downtown
redevelopment property, including Uppertown. Facilitate future use options for public property/King Ave. lot.

Enhance redevelopment opportunities for C/I properties

Identify business owners interested in redevelopment of blighted C/I properties. Work with the building department to
identify properties eligible for the blighted properties C/I program. Hold periodic discussions with various departments
(police, fire, building, and planning) to discuss potential redevelopment opportunities.

Acquire properties or short- and long-term redevelopment

Monitor the market and identify properties for potential acquisition which align with the strategic objectives of the
HRA, including substandard structures.

Optimize use of studies, data, and research tools

As needed, conduct studies and conduct research to best guide the HRA in its activities. Utilize tools such as
analytical software to better understand conditions and opportunities.

Page 14 of 42

City of Elk River
Housing and Redevelopment Authority
Resolution 26-01
A Resolution of the City of Elk River Housing and Redevelopment Authority, Establishing the
Tax Levy for The Elk River Housing and Redevelopment Authority for the City of Elk River,
Minnesota
WHEREAS, Minnesota Statute §469.033, Subd. 6, authorizes the Elk River Housing and Redevelopment Authority to
levy an amount not to exceed .0185 percent of the estimated market value within the city to be used for housing and
redevelopment purposes; and,
WHEREAS, the Elk River Housing and Redevelopment Authority has considered at its meeting on September 8, 2026,
its 2027 budget and levy request; and,
WHEREAS, the Elk River Housing and Redevelopment Authority anticipates expenditures in 2027 for various housing
and redevelopment activities.
NOW, THEREFORE, BE IT RESOLVED by the Elk River Housing and Redevelopment Authority, as follows: that
it hereby adopts a budget for 2027 in the amount of $520,200, and requests the City Council of the City of Elk River to
levy a tax in the amount of $480,200 for the benefit of the Authority to be used as provided by Minnesota Statutes.
Passed and adopted this 8th day of September, 2026.

Nate Ovall, HRA Chair

ATTEST:

Brent O’Neil, HRA Executive Director

Page 15 of 42

Request for Action

To
Housing and Redevelopment Authority

Item Number
6.2

Meeting Date
September 8, 2026

Prepared By
Joshua Mollan, Economic Development Specialist

Item Description
Downtown Furniture Placement

Reviewed by
Brent O'Neil
Cal Portner

Action Requested
Approve, by motion, the attached memorandum of understanding allowing placement of outdoor furniture at
PID: 75-00405-0235 by the Downtown Elk River Business Association (DERBA) for public use.

Background/Discussion
DERBA was gifted an oversized Adirondack chair from Plants and Things in May 2024. The Elk River Housing
and Redevelopment Authority (HRA) approved DERBA to place the chair on their property at 724 Main
Street, the former Elk River Meats site. This chair has been a local attraction, drawing visitors to take and
share pictures. After the City Council did not approve placement of the chair at the base of Rivers Edge
Commons during the King Avenue lot reconstruction, the chair was moved to the plaza at Granite Shores.
Representatives from Granite Shores have advised that they will allow the chair to remain on their property
through September 30.
The proposed placement is within the HRA-owned parcel 75-00405-0235 on a mulched bump out reserved
for a future public restroom. This proposed location is supported by DERBA and city staff, and is one of a
couple of potential alternatives.
The attached memorandum of understanding is substantially similar to the previous version executed by the
HRA in May 2025. It allows the oversized chair to remain on the HRA's property, subject to 60 days' notice
of termination by either party, and includes an indemnification provision. It is anticipated that DERBA and the
HRA will revisit a more permanent placement following the completion of the 2027 downtown
reconstruction.
Financial Impact
As costs are being borne by partners of the HRA, any associated costs of the HRA would be incidental and
expected to be less than $500.
Mission/Policy/Goal
Work with citizens to achieve goals.
Attachments
1.
Proposed Chair Location Wide
The Elk River Vision
A resilient, welcoming, and thriving community that leads through innovation, meaningful
engagement, exceptional service, and responsible planning for future generations.

Page 16 of 42

2.
3.

Proposed Chair Location Close Up
DERBA Furniture MOU

Page 17 of 42

Page 18 of 42

Page 19 of 42

Memorandum of Understanding
This MEMORANDUM OF UNDERSTANDING (“MOU”) is made and entered into as
of the ___ day of ________________________, 2026 by and between the ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY, a public body corporate and politic
under the laws of the State of Minnesota (“HRA”) and the DOWNTOWN ELK RIVER
BUSINESS ASSOCIATION, a Minnesota nonprofit corporation (“Association”).
RECITALS
WHEREAS, the HRA owns the real property with a PID of 75-00405-0235 (the
“Property”); and
WHEREAS, the Association has offered to place an oversized Adirondack chair (the
“Furniture”) on the Property for use by the public; and
WHEREAS, the Association has arranged to obtain the Furniture at its own sole expense;
and
WHEREAS, the HRA believes that placing the Furniture on the Property will benefit the
public and further a public purpose by supporting the HRA’s efforts to promote redevelopment in
the City of Elk River; and
WHEREAS, the parties to this MOU wish to memorialize their understanding.
NOW, THEREFORE, the HRA and the Association have reached the following
understandings:
1.
Purpose. The purpose of this MOU is to establish a mutual understanding of the parties’
intentions, rights, and obligations.
2.
Furniture Placement Authorized. The Association is authorized to place the Furniture
on the Property through the term of this MOU. In no case shall the HRA be responsible for any
portion of the cost associated with the Furniture on the Property.
3.
Responsibilities of Association. The Association shall be solely responsible for acquiring,
transporting, placing, maintaining, cleaning, repairing, and removing the Furniture. The
Association shall ensure the Furniture is removed from the Property on or before the date the
authorization ends.
4.
Responsibilities of the HRA. The HRA shall allow the Furniture to be placed on the
Property, and shall not remove the Furniture except as provided in this MOU. If the Furniture
becomes damaged, defaced, in disrepair, unsightly, or begins to encroach on or obstruct the use of
the Property or nearby uses, the HRA may, but is under no obligation to, remove and dispose of
the affected portion of the Furniture.

Page 20 of 42

5.
Time; Termination. This MOU shall be effective from the date of its final execution and
shall continue until terminated by either party. Either party to this MOU may terminate this
agreement for any reason upon sixty (60) days’ written notice. The Association shall, at its own
sole cost, remove the Furniture from the Property within fourteen (14) days of any termination of
this agreement. If the Association fails to do so, the HRA may remove the Furniture and the
Association shall reimburse the HRA for the full cost of doing so.
6.
Representation of Authority. The undersigned executing this agreement represent and
warrant that they have been duly authorized to execute this agreement and that this agreement shall
bind it to the terms and obligations contained herein.
7.
Mutual Indemnification. To the fullest extent permitted by law, the Association agrees
to defend, indemnify and hold harmless the HRA, the City of Elk River, and their employees,
officials, and agents from and against all claims, actions, damages, losses and expenses, including
reasonable attorney fees, arising out of the Association’s use of the Property or its placement of
the Furniture. The indemnification obligation shall apply to anyone directly or indirectly
employed, hired, or otherwise participating in the Association use, or anyone for whose acts the
Association may be liable. The HRA agrees to defend, indemnify and hold harmless the
Association, and their employees, officials, and agents from and against all claims, actions,
damages, losses and expenses, including reasonable attorney fees, arising out of the HRA’s
performance under this agreement. It is understood and agreed that the provisions of the Municipal
Tort Claims Act, Minn. Stat. Ch. 466, and other applicable laws govern liability arising from the
HRA’s acts or omissions. The parties agree this indemnity obligation shall survive the completion
or termination of this Agreement.
8.
Entire Agreement; Modification. This MOU supersedes any prior or contemporaneous
representations or agreements, whether written or oral, between the Parties and contains the entire
agreement. Any modification to this MOU must be in writing and be signed by the parties.
9.
Assignment. The Association may not assign this Agreement to any other person unless
written consent is obtained from the HRA.
10.
No Employee Relationship. Nothing within this MOU shall be construed as creating an
agent or employee relationship between the HRA and the Association.
[Remainder of Page Intentionally Left Blank]

Page 21 of 42

Elk River Housing and Redevelopment
Authority

Downtown Elk River Business
Association

Nate Ovall, Chair

Deana Mclean, Chair

Brent O’Neil, Executive Director

Page 22 of 42

Request for Action

To
Housing and Redevelopment Authority

Item Number
6.3

Meeting Date
September 8, 2026

Prepared By
Joshua Mollan, Economic Development Specialist

Item Description
Housing Rehabilitation Loan Program Update

Reviewed by
Brent O'Neil
Cal Portner

Action Requested
Receive updates on the Housing Rehabilitation Loan Program.

Background/Discussion
CEE reports that all accounts are current, and the HRA's portfolio is performing as expected with no
delinquencies or late payments.
A new loan of $28,625 was issued on 7/9 for a patio and retaining wall project. $86,375 remains available for
new loan disbursements in 2026.
Financial Impact
N/A
Mission/Policy/Goal
Improve housing stock by offering incentives or programs to repair or maintain residential properties.
Attachments
1.
CEE Monthly Loan Activity Summary
2.
CEE Monthly Loan Servicing Report

The Elk River Vision
A resilient, welcoming, and thriving community that leads through innovation, meaningful
engagement, exceptional service, and responsible planning for future generations.

Page 23 of 42

CEE Monthly Loan Activity Summary
9/8/26

Page 24 of 42

Dat
aSet
:August1st
,2026

CI
TYOFELKRI
VER
LOANSERVI
CI
NG REPORT
J
ul
y2026

Page 25 of 42

CONTENTS

1
2
3
4
5
6
7
8
9

I
nvoi
c
eRepor
t
Tr
i
alBal
anc
eRepor
t(
LoanDet
ai
l
)
New LoanCount
Tot
alLoanCount(
Mont
hl
yDet
ai
l
)
Tr
i
alBal
anc
eRepor
t(
Mont
hl
yDet
ai
li
nUSD)
Mont
hl
yPaymentCol
l
ec
t
i
onPerLoan
Tot
alPaymentCol
l
ec
t
i
oni
nUSD(
Mont
hl
yDet
ai
l
)
Tot
alPr
i
nc
i
palCol
l
ec
t
i
oni
nUSD(
Mont
hl
yDet
ai
l
)
Tot
alI
nt
er
estCol
l
ec
t
i
oni
nUSD(
Mont
hl
yDet
ai
l
)

Page 26 of 42

TOTALAMOUNT
RECEI
VED

PRI
NCI
PALRECEI
VED

POOL

HRAREHAB
11
1
11
0
0
0
$2,
214.
62
$1,
532.
49
$682.
13
$0.
00
$0.
00
$20.
00
$0.
00
$0.
00
$66.
00
$86.
00
$2,
128.
62

Gr
andTot
al
11
1
11
0
0
0
$2,
214.
62
$1,
532.
49
$682.
13
$0.
00
$0.
00
$20.
00
$0.
00
$0.
00
$66.
00
$86.
00
$2,
128.
62

FUNDSTOTHECI
TY
OFEL
KRI
VER

TOTALFEESTO
SERVI
CER

SERVI
CI
NGFEES

SATI
SFACTI
ON
DRAFTI
NGFEES

DEL
I
NQUENCY
MANAGEMENTFEES

NEW L
OANFEES

3RDPARTYFEES
COL
L
ECTED

L
ATEFEESAND
OTHERFEES
RECEI
VED

I
NTERESTRECEI
VED

COUNTOFPAYOFFS
RECEI
VED

COUNTOFACTI
VE
DEL
I
NQUENTL
OANS

COUNTOFACTI
VE
DEFERREDL
OANS

COUNTOFACTI
VE
AMORTI
ZI
NGL
OANS

COUNTOFNEW
L
OANS

TOTALCOUNTOF
ACTI
VEL
OANS

CI
TYOFELKRI
VER

I
NVOI
CESUMMARY

Det
ai
lf
orJ
ul
y2026

Page 27 of 42

CI
TYOFELKRI
VER
PAYMENTBREAKDOWNPERLOAN
Det
ai
lf
orJ
ul
y2026

TOTALAMOUNT
RECEI
VED

PRI
NCI
PAL
RECEI
VED

Sour
c
eCompany

Loan#

Addr
ess

ELKRI
VER

19015204

14205THSTNW

$208.
04

$205.
13

19015209

609GATESAVENW

$187.
63

23029012

18990TWI
NL
AKESRDNW

$260.
00

23029085

17931GARYSTNW

23029618

Gr
andTot
al

I
NTEREST
RECEI
VED

LATEFEESAND
OTHERFEES
RECEI
VED

3RDPARTYFEES
COLLECTED

$2.
91

$0.
00

$0.
00

$181.
49

$6.
14

$0.
00

$0.
00

$163.
58

$96.
42

$0.
00

$0.
00

$306.
00

$231.
34

$74.
66

$0.
00

$0.
00

13366181STL
NNW

$351.
80

$140.
18

$211.
62

$0.
00

$0.
00

24032189

14270191STAVENW

$142.
69

$85.
51

$57.
18

$0.
00

$0.
00

24033299

17812CONCORDCTNW

$258.
90

$155.
16

$103.
74

$0.
00

$0.
00

25039214

18471TROTTBROOKPKWYNW

$240.
66

$224.
04

$16.
62

$0.
00

$0.
00

25040378

11137167THAVENW

$258.
90

$146.
06

$112.
84

$0.
00

$0.
00

25041322

9624209THAVENW

$0.
00

$0.
00

$0.
00

$0.
00

$0.
00

26043718

19443ZUMBROCTNW

$0.
00

$0.
00

$0.
00

$0.
00

$0.
00

$2,
214.
62

$1,
532.
49

$682.
13

$0.
00

$0.
00

Page 28 of 42

CI
TYOFELKRI
VER
TRI
ALBAL
ANCEREPORT
Mont
hl
yDet
ai
l

2025
Q3

2026
Q4

Q1

Q2

Q3

August

Sept
ember

Oc
t
ober

November

Dec
ember

J
anuar
y

Febr
uar
y

Mar
c
h

Apr
i
l

May

J
une

J
ul
y

$3,
413.
35

$3,
212.
56

$3,
011.
12

$2,
809.
48

$2,
607.
22

$2,
404.
71

$2,
201.
78

$1,
997.
97

$1,
794.
17

$1,
589.
81

$1,
397.
99

$1,
192.
86

$3,
014.
74

$2,
833.
92

$2,
677.
43

$2,
495.
94

$11,
963.
08

$11,
842.
08

$0.
00

Loan#

Addr
ess

19015204

14205THSTNW

19015209

609GATESAVENW

$4,
445.
76

$4,
268.
51

$4,
090.
53

$3,
912.
45

$3,
733.
66

$3,
554.
75

$3,
375.
42

$3,
194.
91

19015217

1811MAI
NST

$12,
911.
66

$12,
795.
48

$12,
677.
39

$12,
560.
36

$12,
441.
44

$12,
323.
56

$12,
205.
25

$12,
082.
26

19016564

4033RDSTNW

$6,
711.
27

$6,
579.
64

$6,
446.
84

$6,
314.
31

$6,
180.
64

$6,
047.
21

$5,
913.
32

$1,
977.
03

$1,
831.
51

$1,
682.
10

$0.
00

23029012

18990TWI
NL
AKESRDNW

$30,
525.
64

$30,
369.
34

$30,
209.
18

$30,
051.
81

$29,
890.
61

$29,
732.
15

$29,
573.
16

$29,
403.
91

$29,
243.
80

$29,
079.
95

$28,
927.
04

$28,
763.
46

23028654

132221791/
2AVENW

$28,
930.
68

$28,
728.
96

$28,
523.
41

$0.
00

23029085

17931GARYSTNW

$24,
661.
92

$24,
439.
70

$24,
214.
05

$23,
990.
31

$23,
763.
18

$23,
537.
91

$23,
311.
87

$23,
077.
40

$22,
849.
80

$22,
618.
92

$22,
398.
43

$22,
167.
09

23029618

13366181STLNNW

$17,
555.
23

$17,
405.
25

$17,
119.
26

$17,
119.
26

$16,
979.
30

$16,
836.
98

$16,
715.
33

$16,
268.
46

$16,
268.
46

$16,
175.
43

$16,
175.
43

$16,
035.
25

24032189

14270191STAVENW

$17,
988.
90

$17,
907.
32

$17,
823.
51

$17,
741.
37

$17,
657.
01

$17,
574.
30

$17,
491.
31

$17,
402.
30

$17,
318.
72

$17,
232.
97

$17,
152.
83

$17,
067.
32

24033299

17812CONCORDCTNW

$32,
641.
61

$32,
493.
60

$32,
341.
53

$32,
192.
50

$32,
039.
44

$31,
889.
39

$31,
738.
83

$31,
577.
31

$31,
425.
69

$31,
270.
11

$31,
121.
82

$30,
966.
66

25039214

18471TROTTBROOKPKWYNW

$7,
721.
65

$7,
509.
76

$7,
290.
49

$7,
081.
00

$6,
854.
30

$6,
644.
44

$6,
421.
26

$6,
198.
19

$5,
981.
30

$5,
761.
62

$5,
540.
10

$5,
316.
06

25040378

11137167THAVENW

$34,
848.
50

$34,
848.
50

$34,
715.
62

$34,
574.
66

$34,
433.
22

$34,
279.
98

$34,
137.
54

$33,
990.
87

$33,
851.
97

$33,
705.
91

25041322

9624209THAVENW

$35,
000.
00

$34,
863.
84

$34,
460.
29

$34,
460.
29

$34,
375.
21

$34,
015.
22

$34,
015.
22

26043718

19443ZUMBROCTNW

Gr
andTot
al

$28,
625.
00
$187,
507.
67 $185,
710.
12 $218,
595.
81 $188,
621.
35 $186,
862.
42 $220,
120.
06 $218,
244.
59 $211,
920.
01 $210,
289.
10 $208,
452.
99 $193,
258.
26 $220,
350.
77

Page 29 of 42

CI
TYOFELKRI
VER
NEW LOANREPORT
Det
ai
lf
orJ
ul
y2026

POOL

Loan#

Addr
ess

Cont
r
ac
tDat
e

HRAREHAB

26043718

19443ZUMBROCTNW

7/
9/
2026

Gr
andTot
al

$28,
625.
00
$28,
625.
00

Page 30 of 42

CI
TYOFELKRI
VER
TOTALLOANCOUNT
Mont
hl
yDet
ai
l
2025
Q3

12
11

11

August

Sept
ember

12

Q1

12

12

12

Q2

12

12

12

Q3

12

11

11

J
ul
y

J
une

May

Apr
i
l

Mar
c
h

Febr
uar
y

J
anuar
y

Dec
ember

0

November

6

Oc
t
ober

NumberofAc
t
i
veLoans

2026
Q4

Page 31 of 42

0
1

Q2

J
ul
y

J
une 0

Q1

May 0

2025

Apr
i
l0

Mar
c
h0

1

Q4

Febr
uar
y0

J
anuar
y

Dec
ember 0

Q3

November 0

1

1

Oc
t
ober

Sept
ember 0

August 0

COUNTOFNEW LOANSADDED

CI
TYOFELKRI
VER

NEW LOANCOUNT
Mont
hl
yDet
ai
l
2026
Q3

2

Page 32 of 42

$208,
452.
99

May

$220,
350.
77

Q2

J
ul
y

Q1

$193,
258.
26

$210,
289.
10

Apr
i
l

2025

J
une

$211,
920.
01

$218,
244.
59

Febr
uar
y

Q4

Mar
c
h

$220,
120.
06

$186,
862.
42

Dec
ember
J
anuar
y

$188,
621.
35

$218,
595.
81

Q3

November

Oc
t
ober

$185,
710.
12

$0.
00
Sept
ember

$100,
000.
00

$187,
507.
67

$200,
000.
00

August

Unpai
dPr
i
nc
i
palBal
anc
e

CI
TYOFELKRI
VER
TRI
ALBALANCE

Mont
hl
yDet
ai
li
nUSD
2026
Q3

Page 33 of 42

CI
TYOFELKRI
VER
PAYMENTCOL
L
ECTI
ONPERL
OAN
Mont
hl
yDet
ai
l

2025
Q3
EL
KRI
VER

Gr
andTot
al

2026
Q4

Q1

Q2

Q3

August

Sept
ember

Oc
t
ober

November

Dec
ember

J
anuar
y

Febr
uar
y

Mar
c
h

Apr
i
l

May

J
une

J
ul
y

$208.
04

$208.
04
$187.
63

19015204

14205THSTNW

$208.
04

$208.
04

$208.
04

$208.
04

$208.
04

$208.
04

$208.
04

$208.
04

$208.
04

$208.
04

19015209

609GATESAVENW

$187.
63

$187.
63

$187.
63

$187.
63

$187.
63

$187.
63

$187.
63

$187.
63

$187.
63

$187.
63

$187.
63

19015217

1811MAI
NST

$162.
79

$162.
79

$162.
79

$162.
79

$162.
79

$162.
79

$162.
79

$162.
79

$162.
79

$162.
79

$11,
935.
13

19016564

4033RDSTNW

$154.
43

$154.
43

$154.
43

$154.
43

$154.
43

$154.
43

$154.
43

$3,
955.
43

$154.
43

$154.
43

$1,
710.
39

23028654

132221791/
2AVENW

$300.
00

$300.
00

$300.
00

$28,
639.
09

23029012

18990TWI
NL
AKESRDNW

$260.
00

$260.
00

$260.
00

$260.
00

$260.
00

$260.
00

$260.
00

$260.
00

$260.
00

$260.
00

$260.
00

$260.
00

23029085

17931GARYSTNW

$306.
00

$306.
00

$306.
00

$306.
00

$306.
00

$306.
00

$306.
00

$306.
00

$306.
00

$306.
00

$306.
00

$306.
00

23029618

13366181STL
NNW

$501.
00

$201.
00

$402.
00

$0.
00

$201.
00

$201.
00

$178.
00

$501.
00

$0.
00

$201.
00

$0.
00

$351.
80

24032189

14270191STAVENW

$142.
69

$142.
69

$142.
69

$142.
69

$142.
69

$142.
69

$142.
69

$142.
69

$142.
69

$142.
69

$142.
69

$142.
69

24033299

17812CONCORDCTNW

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

25039214

18471TROTTBROOKPKWYNW

$240.
66

$240.
66

$240.
66

$240.
66

$240.
66

$240.
66

$240.
66

$240.
66

$240.
66

$240.
66

$240.
66

$240.
66

25040378

11137167THAVENW

$258.
90

$0.
00

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

$258.
90

25041322

9624209THAVENW

$0.
00

$259.
90

$562.
00

$0.
00

$259.
80

$517.
80

$0.
00

26043718

19443ZUMBROCTNW
$2,
381.
04

$2,
617.
94

$7,
044.
04

$2,
180.
04

$2,
640.
84

$16,
026.
14

$2,
214.
62

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00
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722.
14

$2,
422.
14

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882.
04

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560.
23

$2,
381.
04

Page 34 of 42

$2,
617.
94

Febr
uar
y

$2,
214.
62

Q2

J
ul
y

$16,
026.
14

$20,
000.
00

J
une

$2,
640.
84

2026

May

$7,
044.
04

Q1

Apr
i
l

$2,
180.
04

$2,
381.
04

J
anuar
y

Q4

Mar
c
h

$2,
381.
04

Dec
ember

$30,
560.
23

2025

November

$2,
882.
04

$2,
422.
14

Sept
ember

Q3

Oc
t
ober

$2,
722.
14

August

TOTALPAYMENTSCOLLECTED

CI
TYOFELKRI
VER

TOTALPAYMENTCOLLECTI
ON(
USD)
Mont
hl
yDet
ai
l

Q3

Page 35 of 42

$1,
742.
36

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875.
47

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anuar
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uar
y

$1,
532.
49

$15,
194.
73

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ul
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une

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836.
11

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May

Q1

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i
l $1,
630.
91

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324.
58

Q4

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c
h

$1,
758.
93

Dec
ember

$29,
974.
46

2025

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$2,
114.
31

$1,
797.
55

Sept
ember

Q3

Oc
t
ober

$2,
093.
60

August

PRI
NCI
PALRECEI
VED

CI
TYOFELKRI
VER

TOTALPRI
NCI
PALCOLLECTI
ON(
USD)
Mont
hl
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$20,
000.
00

Page 36 of 42

I
NTERESTRECEI
VED

$682.
13

$831.
41

Q2

J
ul
y

J
une

$802.
73

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$549.
13

$715.
46

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47

Q1

Apr
i
l

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c
h

$637.
68

$621.
11

Q4

Febr
uar
y

J
anuar
y

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ember

$582.
62

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November

$765.
73

Q3

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t
ober

$623.
59

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ember

$0.
00
$627.
54

$500.
00

August

CI
TYOFELKRI
VER

TOTALI
NTERESTCOLL
ECTI
ON(
USD)
Mont
hl
yDet
ai
l

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$1,
000.
00

Page 37 of 42

CI
TYOFELKRI
VER
AGI
NGDELI
NQUENCY
Det
ai
lf
orJ
ul
y2026

Sour
c
e
Company

Loan#

Addr
ess

ELKRI
VER

19015204

14205THSTNW

0

$0.
00

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00

19015209

609GATESAVENW

0

$0.
00

$0.
00

23029012

18990TWI
NLAKESRDNW

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$0.
00

$0.
00

23029085

17931GARYSTNW

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00

$0.
00

23029618

13366181STLNNW

0

$0.
00

$0.
00

24032189

14270191STAVENW

0

$0.
00

$0.
00

24033299

17812CONCORDCTNW

0

$0.
00

$0.
00

25039214

18471TROTTBROOKPKWYNW

0

$0.
00

$0.
00

25040378

11137167THAVENW

0

$0.
00

$0.
00

25041322

9624209THAVENW

0

$0.
00

$0.
00

26043718

19443ZUMBROCTNW

0

$0.
00

$0.
00

0

$0.
00

$0.
00

Gr
andTot
al

DAYSPASTDUE

AMOUNTDUE
30+DAYS

TOTALAMOUNT
DUE

Page 38 of 42

Request for Action

To
Housing and Redevelopment Authority

Item Number
9.1

Meeting Date
September 8, 2026

Prepared By
Joshua Mollan, Economic Development Specialist

Item Description
Downtown Hanging Flower Baskets and Fixtures

Reviewed by
Brent O'Neil
Cal Portner

Action Requested
Item presented for information and discussion purposes.

Background/Discussion
The HRA is in the second year of a three-year contract with Yardworx Outdoor Services for all-inclusive
hanging flower basket services. With the upcoming Main Street and Jackson Avenue reconstruction slated for
2027, staff recommends forgoing next year's installation and maintenance of the hanging flower baskets due to
uncertainty of the status of the light poles, inadequate access for watering and other maintenance, and risk of
damage by large equipment.
We'd like to discuss a modification to Yardworx's contract as well as Yardworx's request to look at renewal
for 2028 and beyond.
The HRA has budgeted $28,000 for 'contractural services' in 2027. With the funds expected for hanging
flower basket services to be left unspent, the HRA could consider alternative ways to support the
beautification of downtown in 2027.
Financial Impact
N/A
Mission/Policy/Goal
The HRA recognizes the need for appropriate permanent fixtures available for public use to maintain a safe,
clean, and accessible downtown area to preserve the vitality of the business district and prevent the
emergence of blighting conditions.
Attachments
None

The Elk River Vision
A resilient, welcoming, and thriving community that leads through innovation, meaningful
engagement, exceptional service, and responsible planning for future generations.

Page 39 of 42

Request for Action

To
Housing and Redevelopment Authority

Item Number
9.2

Meeting Date
September 8, 2026

Prepared By
Brent O'Neil, Economic Development Director

Item Description
Land Acquisition Opportunity — Mississippi Road

Reviewed by
Cal Portner

Action Requested
This item is for discussion and feedback.

Background/Discussion
The property owners at 13296 Mississippi Road have been in contact with the city about developing the
property into residential lots, including the possibility of one or more lots being suitable for the Habitat for
Humanity student-built housing project. The owners may be open to a partnership with the HRA and Habitat
to offer the lot(s) at a reasonable cost for Habitat placement. We intend to discuss different scenarios for
how a partnership may work, including HRA or State Affordable Housing Aid may be considered for this
project.
Financial Impact
N/A
Mission/Policy/Goal
Improve citizen quality of life.
Attachments
1.
Aerial of Property
2.
Handout

The Elk River Vision
A resilient, welcoming, and thriving community that leads through innovation, meaningful
engagement, exceptional service, and responsible planning for future generations.

Page 40 of 42

Page 41 of 42

Page 42 of 42