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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 05-28-2020APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY May 28, 2020 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Robert Huddleston, Aqueelah Whitfield (arrived at 7:10 p.m.), and Lucas Larson. ABSENT: Commissioner Jeff Kulaszewicz STAFF PRESENT: HRA Executive Director Steve Juetten, HRA Manager Jim Barnes, Support Services Manager Denise Whalen, Community Development Coordinator Matt Lupini, and Permit Technician Tina Beckfeld. OTHERS PRESENT: Council Member Jim Davis, and Andy Hughes, representative of CommonBond 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:05 p.m. 2. PUBLIC FORUM Chair Soderberg opened and closed the Public Forum, as there was no one present to speak. 3. APPROVE AGENDA MOTION by Commissioner Huddleston, seconded by Commissioner Larson, to approve the Agenda. Roll Call Vote. 3 Ayes. (Chair Soderberg, Commissioners Huddleston, and Larson). MOTION passed unanimously. 4. CONSENT AGENDA 4A. Approve proposed March 26, 2020 and May 7, 2020 minutes. 4B. Plymouth Towne Square. Accept monthly housing reports. 4C. Vicksburg Crossing. Accept monthly housing Reports. 4D. Approve Covid-19 statutory and regulatory waivers for the Housing Choice Voucher Program MOTION by Commissioner Huddleston, seconded by Commissioner Larson, to approve the Consent Agenda. Roll Call Vote. 3 Ayes. (Chair Soderberg, Commissioners Huddleston and Larson). MOTION passed unanimously. Approved Minutes Plymouth Housing and Redevelopment Authority May 28, 2020 Page 2 5. NEW BUSINESS 5A. Strategic Plan Process. Overview by Cathy Bennett Cathy Bennett, President/CEO/Owner of Bennett Community Consulting, gave her background and credentials. She gave an overview of the Power Point presentation of the HRA Strategic Planning process. Chair Soderberg asked if the timeline would be shifting a month because May is almost over. Ms. Bennett stated the start date could be after the surveys are returned or surveys can be sent out in June and keep the same schedule. Chair Soderberg inquired about the timing of the joint meetings with the City Council. HRA Manager Barnes stated there are two; one in July 2020 (development discussion) and another in October 2020 (SWOT analysis). Chair Soderberg asked Ms. Bennett how many times she has worked with various communities. Ms. Bennett replied that she has done hundreds of public presentations, and approximately a dozen HRA Strategic Plans, noting her latest one for Golden Valley. Chair Soderberg asked what would be the key to success. Ms. Bennett answered getting as many participants as possible to reply to the survey. Many times businesses do not see the connection between their businesses and housing, so it is important to inform them. The surveys and SWOT analysis is most essential. The emphasis will be on distilling data and the results from the survey as to what is important. Chair Soderberg asked about the timing of the joint City Council meetings. HRA Executive Director Juetten stated the process might not move fast enough to meet the planned July meeting with the City Council so it may need to be moved back. The engagement of the HRA will be easy, but he asked Council Member Davis to facilitate a good response from the City Council members. Engaging the council and the general public will be the biggest challenge. The city council is engaged in a parallel process; Strategic Planning for City Center, that the HRA is not a part of, but may be of benefit to HRA housing. The study will provide market data the HRA can use. Ms. Bennett said that she could be flexible in shifting schedules to meet the needs of the HRA. 5B. Stone Creek Village Apartments. Approve subordination of HRA loans. Approved Minutes Plymouth Housing and Redevelopment Authority May 28, 2020 Page 3 HRA Manager Barnes gave an overview of the staff report. Chair Soderberg ask for clarification of the subordination. HRA Manager Barnes stated that the loan is already in a subordinate position. The master subordination agreement will keep all loans in the same position. Commissioner Larson asked if they are refinancing with the city or just with Bridgewater. HRA Manager Barnes said they are refinancing their Fannie Mae mortgage for 5 years with Bridgewater, intending to solidify more permanent financing in the future. Commissioner Larson asked if the principle balance would change with the City of Plymouth. HRA Manager Barnes answered no, the principle balance will not change. MOTION by Commissioner Huddleston, seconded by Commissioner Whitfield to approve the subordination request for the $236,000 Tax Increment Housing Assistance Program loan and the $130,000 Affordable Housing Fund Program loan. Roll Call Vote. 4 Ayes. (Chair Soderberg, Commissioners Huddleston, Whitfield, and Larson). MOTION passed unanimously. 5C. Willow Woods Apartments. Approve assumption of HRA loan HRA Manager gave an overview of the staff report. Chair Soderberg asked for clarification of item number two of the letter from CommonBond, which states, “There should not be an expectation of repayment in the case of a preservation project like this.” HRA Manager Barnes stated that many cities or funders consider the forgiveness of interest to assist and preserve the projects affordable housing units. Chair Soderberg asked if we would consider forgiving the interest. HRA Manager Barnes answered that staff is proposing to wait to make sure the project is going forward and they are executing the HAP funding contract for another 20 years. Chair Soderberg asked the condition of Willow Woods Apartment. Mr. Andy Hughes, representative of CommonBond, answered the property is in good condition. They are planning a moderate rehab in 2022 consisting of select roofing, siding, and some interior refresh of some units. Funding is being set aside for future improvements. Approved Minutes Plymouth Housing and Redevelopment Authority May 28, 2020 Page 4 Commissioner Larson asked why Dominium doesn’t pay the interest before CommonBond assumes the loan. HRA Manager Barnes said the interest repayment is negotiated between Dominium and CommonBond. Commissioner Larson asked if the $50,000 loan was with the City of Plymouth. HRA Manager Barnes answered the loan is from Plymouth HRA. Chair Soderberg asked if the terms of the loan just required accrual not repayment. HRA Manager Barnes replied full payment; principle and interest, of the note would be in 2035 when the note becomes due. Commissioner Larson asked if the loan transfers with the change in ownership. HRA Manager Barnes replied it does not. That is why CommonBond is requesting an assumption of the loan. Commissioner Larson raised the concern of the HRA losing repayment of interest when CommonBond assumes the loan, if the interest is not already paid by Dominium. HRA Manager Barnes stated the majority of loans are issued at 0% interest and all loans are a myriad of terms conditions that are negotiated between the owner and either the HRA or City. Mr. Hughes stated it is important to note that CommonBond is requesting to assume the loan to include the interest to help fund the purchase price. It will actually reduce the purchase price that will be going to the seller. Commissioner Larson noted he wants to make sure the HRA will not be losing out on any interest payment. HRA Manager Barnes stated when CommonBond comes back in 2022 staff will evaluate their entire financial package to determine if interest forgiveness make sense. Chair Soderberg noted assumption of the loan would guarantee 20 more years of affordable housing in those units. Commissioner Whitfield asked what impact this assumption would have on the residents. Approved Minutes Plymouth Housing and Redevelopment Authority May 28, 2020 Page 5 HRA Manager Barnes stated the assumption may require temporary relocation of some of the residents to a different unit or another property for the duration of planned upgrades, but that this would not occur until 2022. MOTION by Commissioner Larson, seconded by Commissioner Whitfield, to approve the assumption of the $50,000 Affordable Housing Fund loan to facilitate the preservation of affordable housing. Roll Call Vote. 4 Ayes. (Chair Soderberg, Commissioners Huddleston, Whitfield, and Larson). MOTION passed unanimously. 5D. Election of Vice-Chair Chair Soderberg nominated Commissioner Larson to fill the Vice-President position. MOTION by Chair Soderberg, seconded by Commissioner Whitfield, nominating Commissioner Larson as HRA Vice-chair. Roll Call Vote. 4 Ayes. (Chair Soderberg, Commissioners Huddleston, Whitfield, and Larson). MOTION passed unanimously. 6. UPDATES HRA Manager Barnes provided an update to the Board on the following items. • Element/Sand Companies • Beacon Interfaith/Cranberry Ridge • Senior Building updates • Vicksburg Crossing windows • HRA Strategic Plan 7. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 7:56 p.m.