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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 12-17-2020APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY December 17, 2020 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Jeff Kulaszewicz, Robert Huddleston, Aqueelah Whitfield, and Lucas Larson. STAFF PRESENT: HRA Executive Director Steve Juetten, HRA Manager Jim Barnes, Community Development Coordinator Matt Lupini, Support Services Manager Denise Whalen, and Permit Technician Tina Beckfeld. OTHERS PRESENT: Council Member Jim Davis, Cathy Capone Bennett of Bennett Community Consulting, Darren Sprute of Inspec, Kerry Ignatius of Intelligent Design, David Kapsner of Minnesota Exteriors, Inc., and Jody Boedigheimer of Grace Management 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 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 Kulaszewicz, seconded by Commissioner Whitfield, to approve the Agenda. Roll Call Vote. 5 Ayes. (Chair Soderberg, Commissioners Whitfield, Larson, Huddleston, and Kulaszewicz). MOTION passed unanimously. 4. CONSENT AGENDA 4A. Approve proposed November 19, 2020 minutes 4B. Plymouth Towne Square. Accept monthly housing reports 4C. Vicksburg Crossing. Accept monthly housing reports MOTION by Commissioner Larson, seconded by Commissioner Kulaszewicz, to approve the Consent Agenda. 5 Ayes. (Chair Soderberg, Commissioners Whitfield, Larson, Huddleston, and Kulaszewicz). MOTION passed unanimously. 5. NEW BUSINESS 5A HRA Strategic Plan – Review draft plan Approved Minutes Plymouth Housing and Redevelopment Authority December 17, 2020 Page 2 Ms. Capone Bennett gave an overview of the Strategic Plan draft. Commissioner Kulaszewicz suggested adding Council Member Davis to the list of contributors on page 3. Council Member Davis commented the word “informed” was not used appropriately in the second paragraph on page 3. Ms. Capone Bennett asked the board to complete the implementation table on pages 14 & 15 prior to the next meeting. HRA Manager Barnes stated he would email a due date to submit responses prior to the next meeting so responses could be included in the next packet for review. Chair Soderberg noted the importance of impact considerations to help prioritize implementation. Commissioner Larson commented that there are other non-financial costs such as negative developer perception of certain programs including tenant protection and mixed income programs. Chair Soderberg and Commissioners Whitfield and Larson complimented Ms. Capone Bennett on the accurate interpretation and professional draft of the strategic plan. Commissioner Kulaszewicz commented he liked “The Facts” boxes included in the strategic plan and the ratings for the implementation. 5B Senior Building Budgets. Review and approve the 2021 budgets 5B.1 Plymouth Towne Square HRA Manager Barnes gave an overview of the staff report. Council Member Davis asked about the transfer-in line item under income. HRA Manager Barnes answered it is for non-capital or capital expenditures that are out of the annual operating budget taken from reserves. This change was implemented to be more consistent with the city budget. Council Member Davis requested the dates in the footer be corrected. Commissioner Kulaszewicz said he would like to see more current averages used. Approved Minutes Plymouth Housing and Redevelopment Authority December 17, 2020 Page 3 HRA Manager Barnes answered they use averages over time to account for years that are not typical. Budgets are started in May and June making it difficult to use more current data when the budgets are brought before the board for approval. He said staff would work with Grace Management and finance to see if more current information can be presented. Housing Manager Barnes also reminded the Board that they can view more current information in the monthly financials that are included in the Agenda Packet. Commissioner Larson asked how the 2% rent increase was determined. HRA Manager Barnes replied staff compares what surrounding HRAs and private sector rentals are charging, and uses the city’s rental survey for guidelines. It is a balance between reasonable rent and impact on taxpayer money. Commissioner Larson inquired about how Grace Management’s rate increase is determined. HRA Manager Barnes replied the original contract signed in 2000 had no provision for escalating costs. Staff determined 3%; 1.5% per building, per year, was fair. He noted Grace Management prices are reasonable compared to other management firms. Grace Management Representative Boedigheimer stated the increase is a fixed fee and not based on a percentage of rent. Commissioner Larson asked about the margins. HRA Manager Barnes answered that margins are mostly used in the private sector. The HRA as a mission-driven governmental entity is not looking to profit off operation of the building, but rather provide affordable housing options. Council Member Davis asked about the building managers. HRA Manager Barnes said the building managers are employees of Grace Management. MOTION by Commissioner Larson, seconded by Commissioner Huddleston, to adopt Resolution 2020-18 approving the 2021 Plymouth Towne Square Operating Budget. Roll Call Vote. 5 Ayes. (Chair Soderberg, Commissioners Whitfield, Larson, Huddleston, and Kulaszewicz). MOTION passed unanimously. 5B.2 Vicksburg Crossing HRA Manager Barnes gave an overview of the staff report. Chair Soderberg asked how much is the percentage of rent increase. HRA Manager Barnes answered 1%; $5 per unit. Approved Minutes Plymouth Housing and Redevelopment Authority December 17, 2020 Page 4 There was discussion amongst the Commissioners surrounding the large discrepancy between bids for the window replacement project. The larger bid recommended by staff and submitted by Minnesota Exteriors includes the base bid plus Alternate 1 which includes the cost to remove/repair the brick surround.. The consensus was the brick repair was necessary to ensure a quality installation for a permanent fix. Mr. Sprute of Inspec explained the benefits of the brick repair and how it would solidify the new installation of the windows. Commission Larson asked if the bid was a guaranteed maximum bid and who would be responsible for the repair cost should it exceed the bid. HRA Manager Barnes replied no, the bid is not a guaranteed maximum bid; it is a fixed bid with Alternate 1. If the cost went over the contractor would be responsible for any additional costs. Once the project commenced, and if problems arise, staff would reevaluate the options at that time. Council Member Davis asked if 100% of the windows were being replaced. HRA Manager Barnes responded approximately 95% of the windows are being replace – in every unit and some in the common areas. Chair Soderberg inquired if references were checked. HRA Manager Barnes answered yes - both contractors’ references checked out. They each have commercial experience and have worked with public entities in the past. MOTION by Chair Soderberg, seconded by Commissioner Whitfield, to adopt Resolution 2020-17 approving the 2021 Vicksburg Crossing Operating Budget and in doing so also award the 2021 Window Replacement project bid of $659,602 to Minnesota Exteriors. Roll Call Vote. 5 Ayes. (Chair Soderberg, Commissioners Whitfield, Larson, Huddleston, and Kulaszewicz). MOTION passed unanimously. 5C Project update – Fernbrook property (Valor Place) Community Development Coordinator Lupini gave an overview of the staff report adding he and HRA Manager Barnes attended a two hour neighborhood meeting the previous night discussing concerns the neighbors had regarding Valor Place including maintenance of the property, access to the property, and impact to surrounding property values. Council Member Davis asked about saving the existing trees in the public right-of-way near the property. Community Development Coordinator Lupini stated he conferred with Paul Buck, City Forester, and it was determined the trees would have to be removed for driveway access. It would be cost prohibitive to move the trees so they will be replaced. Approved Minutes Plymouth Housing and Redevelopment Authority December 17, 2020 Page 5 Commissioner Huddleston asked if using $600,000 for two families was the best use of taxpayer money. HRA Manager Barnes stated the $600,000 price point is a placeholder for the budget and said the price will most likely be lower. Charles Cudd is soliciting contributions to be used for funding of the project along with staff working to secure a $50,000 grant through the Home Depot Foundation. Commissioner Huddleston asked about payback to the city. HRA Manager Barnes replied repayment would be slow. He added that even if the property were sold, the HRA would not recoup their entire investment. Commissioner Huddleston asked about the cost of maintaining the property. HRA Manager Barnes said cost to maintain the property was determined to be approximately $2,500 - $3,000 per year for lawn maintenance, including weed control, and snow removal. Money from the rent would also be put into reserves for future anticipated costs for maintenance such as a roof replacement or appliance replacements. Commissioner Whitfield asked if Valor Place would accept housing choice vouchers. HRA Manager Barnes answered the tenant could potentially have a housing choice voucher. The target population is geared toward veterans and families transitioning from Minnesota Assistance Council for Veterans (MACV) or similar programs, with a source of income sufficient to pay the established rent. Chair Soderberg added potential tenants transferring from MACV programs have the benefit of continued support. Commissioner Larson asked about the rent price and how it was calculated. HRA Manager Barnes replied the $1,200 monthly rent per unit was based on 50% of area median income (AMI) for a family of three. Commissioner Larson said funding of Valor Place is the perfect scenario for the HRA to consider investing in. It is good opportunity to serve veterans with affordable housing, the city can control the property maintenance, and the property could always be sold if need be. Chari Soderberg stated the property would always be an asset to the HRA. Commissioner Larson asked who would maintain the property for the city. Approved Minutes Plymouth Housing and Redevelopment Authority December 17, 2020 Page 6 HRA Manager Barnes answered outside contractors, maintenance staff from the senior buildings, and/or city staff. MACV also has a property maintenance program that will be looked into to see if it would make sense for them to cover maintenance issues. Chari Soderberg stated if MACV property management was contracted it could potentially provide an added layer of connectivity to services. Commissioner Larson asked if the Home Depot Foundation grant would have covenants or restrictions tied to the grant that would inhibit the sale of the property. HRA Manager Barnes answered none that he is aware of. However they are researching if Metropolitan Council, Hennepin County, or other potential funding sources would. MOTION by Commissioner Whitfield, seconded by Commissioner Larson, to authorize submission of a veteran housing grant application to the Home Depot Foundation. Roll Call Vote. 5 Ayes. (Chair Soderberg, Commissioners Whitfield, Larson, Huddleston, and Kulaszewicz). MOTION passed unanimously. 5D HRA Bylaws - Amend bylaws to expand number of commission members to seven HRA Manager Barnes gave an overview of the Staff report. Chair Soderberg asked how the current members line up with the ward and at-large requirements. HRA Executive Director Juetten answered one new member would need to come from Ward 4 and one member would come from At-Large. Chair Soderberg suggested creating a more formal orientation and asked the newest members, Commissioners Whitfield and Larson, for suggestions. Commission Larson said his orientation was well done, but suggested a review of Robert’s Rule of Order be included. HRA Manager Barnes replied the HRA conducts its meetings in a more informal format, but does abide by Robert’s Rules of Order – which could easily be included in the orientation. HRA Manager Barnes stated he would send out orientation information – current packet of orientation materials, possibly an acronym list, and information on the big three rental housing programs to the board members for review and suggestions. MOTION by Commissioner Kulaszewicz, seconded by Commissioner Huddleston, to amend their Bylaws from current number of commissioners of five to seven members. Roll Call Vote. 5 Ayes. (Chair Soderberg, Commissioners Whitfield, Larson, Huddleston, and Kulaszewicz). MOTION passed unanimously. Approved Minutes Plymouth Housing and Redevelopment Authority December 17, 2020 Page 7 6. UPDATES Element Cranberry Ridge Four Seasons Mall 3315 Garland Lane N Harbor Lane Senior Building 7. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:52 p.m.