HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 06-14-1999Formatted
MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
June 14, 1999
PRESENT: Chair David Crain, Commissioners Brad Brown, Judy Johnson, and Tim Bildsoe
ABSENT: Brian Hehnken
STAFF PRESENT: Executive Director Anne Hurlburt, HRA Supervisor Ed Goldsmith, and
Housing Specialist Rebecca Stoen
OTHERS PRESENT: Council Member Ginny Black, Kim Lee with the consulting firm of SRF
Consulting Group, Inc., 14 other members of the public attended the
discussion of the Housing Plan
1. CALL TO ORDER
A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair Crain on
June 14, 1999 at 7:07 p.m.
2. APPROVAL OF MINUTES
MOTION by Commissioner Bildsoe, seconded by Commissioner Brown, to recommend approval of the
May 20, 1999 minutes.
Vote. 4 Ayes. Motion adopted unanimously.
3. PUBLIC COMMENTS AND DISCUSSION OF UPDATE OF CITY HOUSING PLAN
Chair Crain complimented staff and the City on taking public comments at an early stage of the process
before the first draft has even been written.
HRA Supervisor Ed Goldsmith gave a presentation before the public hearing to familiarize the audience
with the terminology, and purpose of a housing plan and an overview of the components of such a plan.
The purpose of the plan is to establish City housing goals and provide strategies to accomplish these goals.
Implementation of the housing plan will require additional actions of the City Council. The plan may
address the following: identification of current and future housing needs and goals, lifecycle housing and
housing diversity, efficient and compact development, needs of people and businesses in the community,
fair housing, inclusionary housing, and the relationship of employment and transportation to housing.
HRA Supervisor Goldsmith also explained the process to update the plan and how it is a component of the
City Comprehensive Plan.
Chair Crain stated for the record that we have received written comments from Doug Mayo of
CommonBond Communities on impediments to developing affordable rental housing. Written comments
were also received from members of the Community Housing Coalition on the need for affordable housing
and a letter from Pauline Milner of 2355 Jonquil Lane stating that there is a need for affordable housing for
seniors and younger people just starting out that needs to be addressed. Copies of these letters are attached
to the minutes. Supervisor Goldsmith also received a phone message from Audrey Reed of 4335 Trenton
Lane, a 10 -year resident of Plymouth. She is concerned about how spread -out housing is in Plymouth.
This results in housing being far from shopping and employment. She stated that this is particularly a
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problem for the elderly, disabled and others without cars. She would like to see more housing built near
shopping. Ms. Reed followed-up her call with a letter that is also attached.
Public comments:
Fran Lewin of 2775 Ranchview #5 — She is a resident of a 3 -year-old development that is currently in
litigation with their builder over alleged defects in the construction. They had asked the City to help them
in dealing with the builder, but received no assistance. She said the city should support residents who are
having problems with developers and builders or at least not allow them to continue to build housing in the
City. She urged the City to consider these issues to ensure well-maintained housing in the City.
Sharon Johnson, Executive Director of Community Action for Suburban Hennepin (CASH), - She
complimented staff on coming up with innovative ways to help increase affordable housing. She
highlighted the need to continue supporting the Section 8 Rental Assistance Program. CASH has
documented the decreasing number of landlords who are willing to participate in the Section 8 Program.
She also stated that Family Self -Sufficiency is also critical. She believes the City can and should work
with employers, especially large employers in Plymouth. There is a need that is not addressed in the City's
programs, which is the individual who needs a small amount of money for rehab work. It is easier to get a
large loan through the rehab program, than it is to get a small emergency job done. She gave an example of
an elderly woman who fell down her stairs because she needed railings and stair repair. She supports
working with nonprofit developers and investigating the possibilities of taking land costs out of
development, through land trusts or other means to control excessive appreciation that contributes to the
loss of affordable housing. She thanked the city for inviting comments and working together to support
efforts in affordable housing.
Commissioner Brown asked if Sharon has had any discussion with employers? Sharon said she has not,
however, she is aware of the Honeywell model, which is more of a neighborhood effort, but is certain that
other communities have models we can look at.
Joe Domagalu 17705 County Road 24. - He has been a business person for 40 years, and said Plymouth
does not have housing west of Medicine Lake Road for people who make less than $12 per hour or live on
Social Security. He is concerned with the need for maintenance on older homes that owners can't afford to
maintain. Condos and townhomes also need maintenance. Homeowner associations don't do their part.
They take care of lawn maintenance and snowplowing, but fall down on the long-term maintenance of
buildings. There are no long-term funds set aside to replace roofs, siding, etc. Plymouth has some
buildings that he feels will need help, especially the ones built 15 years ago, before they fall down. The
City needs to do something to require the associations to address maintenance, maybe by insisting up front
that a maintenance fee be set aside. Maybe the HRA needs another resource base to set aside a portion of
fees so the associations don't spend it. Chair Crain said the city has assisted in repairs in townhouse
developments, such as the Shenandoah development.
Anne Dorweiler, 17035 9"' Ave. N. - She said the message boils down into one word - fairness. She is on
the Westminster Methodist Church Transitional Housing Committee and attends the Community Housing
Coalition meetings. She is appalled at the critical shortage of housing, which will lead to social problems.
We need housing for the elderly, kids, and for ourselves. She wants to see policies changed to achieve those
goals.
Steve Thompson, 3015 Xanthus Lane N. - He is a four year resident who likes living in Plymouth and
recently turned down a job transfer because he didn't want to move. He commends the efforts so far in the
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twenty-year plan. Plymouth needs to make a place for young and old and people who make less than $12
an hour. He brought up the example of the Florida cigar factory that needed to build homes for workers.
The same thing is happening today, people need housing. Housing is as critical today as education. It is
important to address the needs of people from all backgrounds. He gave an example of children who move
a lot and can't get to school. We should fear for the future when kids don't have a permanent place to live.
We need policy, not band-aids, to provide housing. He gave an example of a friend who lost a job, lost a
home, and is now renting. He also spoke of London and it's housing diversity. He would love to see
diversity evolve in Plymouth, to make a good community and that is not so exclusive by income.
Jay Nelson, President of the Plymouth Housing Alliance, 5755 Vagabond Lane — He sees this as a final
period of change from a somewhat undeveloped community to a developed community. Plymouth is
primarily a housing community. It couldn't survive without a transportation system, which is a vital need.
Transportation is the weak link in the chain. Limiting factors in our system are transportation (which is a
regional problem), taxes, cost of land, and the basic parts of zoning. We need better main artery feeder
roads. The City of Plymouth needs to go to the Met Council and make it clear that we need a better
transportation system, whether light rail or to make the roads better. Taxes are prohibitive. Very few
multifamily units are built without tax relief. They are the most affordable type housing available because
of the low cost per unit but aren't being built because of taxes. Apartment buildings are affordable when
they get older and since we are not producing many new ones, we are losing out on this. In all housing, we
can't lose track of what is special in Plymouth. He is frustrated by the Northwest Plymouth studies. There
were no studies to show what is special about Plymouth, such as aesthetics, buildings of merit, why is the
area special? We need to define the areas that need protection and need diversity of aesthetics as well. The
City can look at viable zoning ordinances. There is a need to reinvest in older communities. He agreed
with comments that townhomes need to have ongoing maintenance. Affordable housing can come in a lot
of shapes, older homes, single family houses on the eastern side of town, smaller homes without hottubs
and thirteen bathrooms, affordable rentals, single family owned homes. He remembers when it was not too
difficult to buy some land and build a house, now it is much more difficult even as an architect. The non-
profit developer Plymouth Housing Alliance needs help to continue. Land costs make it almost impossible
to build in Plymouth. If an owner can buy a home without the cost of the dirt, they can afford the house.
An affordable lot is $45,000, which is about half of the cost of the home. The most affordable housing will
be rentals, condos, and multi -units. It is important to take a big view of what is important and special
about Plymouth and to build on that.
Commissioner Bildsoe asked Mr. Nelson about the two ways we've talked about affordable housing, one is
affordable in the cost of building home, and another is the ability of someone to afford it. Mr. Nelson said
that someone needs at least a $36,000 income to afford a single family detached house. Single family
homes are not the best use of land or the best use of funds. There are other types that are less costly but
may not be suited for everyone's needs. Plymouth Housing Alliance has focused on handicapped houses so
they can increase the ability to obtain funds.
Commissioner Brown asked why the Plymouth Housing Alliance focuses on single family detached homes?
Mr. Nelson said if they don't have much money, they can only afford to do single family houses even
though it is more costly per unit. The money was granted for individual lots and Plymouth Housing
Alliance had limited funding, so that's what they used. Chair Crain also added that the Housing Alliance
was started as a single family housing developer, although it has also done single family rehab.
Patty Doten, of 10400 45t` Ave. N, #210 - She was curious about statistics on current housing. She would
like to know how many single-family homes and other types there are in Plymouth to date? (She was told
this information is covered in detail in the current housing plan.) She also wanted to reply about the
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comments on financing repairs on townhomes. She just moved out of a townhome development that had
strict Association by-laws, stating how much money goes to improvements. This was a 15 -year-old
development. There were almost enough in reserves to pay for improvement costs. She recommends
people get townhouse by-laws to include specifics. She also volunteers for Homefree (battered women and
children shelter) and feels there is not housing in Plymouth to accommodate these people.
Bill Pritchard, 14725 41't Avenue N. - He is Vice President of Orin Thompson Homes. He said the
affordability rates set by Met Council are very difficult to meet. He challenges the city to meet the Livable
Community Act, such as requiring three units per acre. He wants to see cluster developments and higher
density used while protecting the environment. In Plymouth, it is very difficult to buy any new construction
under $200,000. This is harmful to the diversity in Plymouth. Some ways to reach this diversity is to give
density credits, allow smaller lots, clustering, while incorporating home ownership for the greatest pride.
Orin Thompson Homes wants to provide homes less than $130,000, but it takes a partnership with the City
and goals to make it more affordable. He said we will see growth outside the seven county area because of
the high cost in Plymouth and we will see greater congestion here as an effect.
Dan Howell, 245 Peninsula Road, Medicine Lake - He is member of St. Mary of the Lake Church and
wants to thank everyone for the support of affordable housing. Mr. Howell said it should be obvious to
everyone that affordable housing is needed. The best way to make it acceptable in Plymouth is to follow
the guidelines, make it well maintained and have it fit in with Plymouth.
Chair Crain thanked everyone and said the comments are worth pursuing. Commissioner Johnson asked a
question regarding the state law that requires townhouses to put money aside for improvements. She
wondered what year the law was and who has authority to enforce that. Director Hurlburt said that the
State law doesn't give the City authority over this. She said when a Homeowners Association comes to the
City, the City can finance HOA improvements, but in turn for using that tool, the city can set requirements
for funding of future improvements by the homeowners association. Commissioner Johnson said she
thought townhomes are required to put a certain percentage of money aside for housing improvements. Ms.
Doten said she thought FHA required it. Director Hurlburt said the HRA could promote the idea, but we
can't require it.
Commissioner Bildsoe asked what the next step is for the housing plan. Chair Crain said all comments are
being collected and will go into the record to be considered in drafting the plan. Chair Crain stated we need
to keep housing affordable by taking the land out of the equation and keeping land affordable, such as
through land leases. Land costs are unbelievable and not getting any better, but we need to find a way to
work in that environment.
HRA Supervisor Goldsmith said that we will begin drafting a plan, but we need direction as to how far
policy makers are willing to go in resolving the issues raised today. How proactive does the City wish to
be? How far does the City want to use its land use controls to create the type of housing we talked about
today? He stated we could do an extremely proactive housing plan, but there needs to be political support
for such a plan. Chair Crain said that is the key and it has always been a difficult to find balance. How
far will the City go in requiring inclusionary housing? The City has not been willing to go that far before.
Commissioner Bildsoe said he wants to find a solution and looks to staff for some options. He also
mentioned that the City does not talk about things it has done in the past, such as the Shenandoah Project,
the $250,000 a year to subsidize Plymouth Town Square, etc. He said the problem is often the state
legislature. Commissioner Bildsoe said he was glad to see a developer here and wishes the room had been
filled tonight. He asked when the next meeting could be scheduled to work this through? Commissioner
Johnson said she echoes what Commissioner Bildsoe said. She commends Director Hurlburt and
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Supervisor Goldsmith for the fact that Plymouth has exceeded Met Council goals, by such projects as
Village at Bassett Creek, Common Bond Communities low-income senior housing, Gramercy Park starting
at $50,000, Rottlund's Elim project in the $120's, the site north of Dundee starting at $130,000, and
Shenandoah Woods Apartments which are heavily subsidized. She stated that the City needs to use tools
and political will, such as increasing density. Commissioner Brown said he sees Mr. Nelson's comment
that we are moving from undeveloped to developed as a window of opportunity. He wants to see an
aggressive response, an activist response, with innovative ideas. Commissioner Bildsoe commented that
several people mentioned we need a discussion on redevelopment. The City has not dealt with this yet
because we're so new.
Ward 4 Council Member, Ginny Black, commented that she wants to see something aggressive to address
the problem. We can always scale back. She also agreed that the City needs to look at the transportation
system before we increase density.
Director Hurlburt said that the HRA will need to set a July meeting date, as the target for a draft plan is
August. We can use the July meeting as time for more discussion. She said we are trying to identify other
areas to re -guide as residential to provide more sites for higher density housing. The City will be having
open houses and planning commission meetings to look at redevelopment areas and get public reaction over
the next month. She encouraged people to come to the meetings to look at proposed changes. This
information is also available on the City's website.
Commissioner Bildsoe encouraged everyone to attend the open houses and make comments then. We also
need people to talk to state legislators. HRA Supervisor Goldsmith asked the people to be sure and sign-up
in the back of the room to be notified of future meetings.
Comments and discussion closed at 8:37 p.m.
4. SUPPLEMENTAL FUNDING FOR SINGLE FAMILY ACCESSIBLE HOUSING
HRA Supervisor Goldsmith gave the background on the project and said that due to cost increases in the
last two years, there was already a shortfall without contingencies. Also, that the request for money is a
last in dollars", so if there are any savings, not all of it will be used. Both Rhonda Farren and Jay Nelson
from the Plymouth Housing Alliance were present for questions. Chair Crain asked questions regarding the
small amount of possible cost reduction ($3,000) for cabinets and volunteers. Rhonda said this is a
conservative estimate and didn't want to count on getting volunteers. Rhonda invited anyone who is
interested to volunteer for clean up, landscaping, etc.
Commissioner Bildsoe asked for clarification on the amount the HRA has already put in. The total
investment is $74,000 in two houses. He said the HRA has talked about the need to spread more money
around. He said we could make many more grants and get more bang for the buck if we spread it around.
The BRA's position in the past has been to put up to $20,000 per house, plus an additional $5,000 for
accessibility features. He said that the amount was decided upon last year, but costs have gone up. It is
difficult to get land, so that when we get it we need to take the opportunity. The reality is the homes need
to fit into the neighborhood and this can be expensive. The HRA needs to discuss if they want to put a
limit on the amount of money given to a developer. Commissioner Bildsoe said he understands the history,
but said we will run out of money before we make a difference. Chair Crain felt that we need to cover it
and move forward but do things differently in the future. Commissioner Johnson was torn too, as she
knows what $25,000 would do for a first time homebuyer. Commissioner Brown asked what will happen if
they say no? Rhonda said they would have to say no to the families. She reminded the HRA that these are
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handicapped homes and are more expensive. Rhonda explained the reasons the project has been delayed
and that price increased $11,000 from last fall. Chair Crain said we need to talk more about future
projects and limitations as this is not the first time this has happened. Commissioner Brown said to
continue this as a practice is not a good policy, but we are in too far now. Commissioner Johnson asked
what would happen to our money if this falls through? Supervisor Goldsmith responded that MI -IFA
would most likely require that the property be developed for affordable handicapped homes or the funds
returned. Commissioner Johnson wondered if we could sell the lots. Director Hurlburt said they are not
the most desirable lots and we couldn't probably find other lots to replace them. Chair Crain said the issue
is that there are two families out there that we would be reneging on. He said he hates to put that much
money in each house, but we are so far into this that we should complete it and learn from it.
Commissioner Johnson asked if there are other sources for extra money. Rhonda said they have already
gotten money from other sources and a lot of work has been donated or discounted in some way.
MOTION by Chair Crain, seconded by Commissioner Brown, recommending that the Board approve up to
24,000 in HRA Affordable Housing Account funds to be available for deferred loans to eliminate
financing gaps in the funding for the two handicapped accessible homes being developed by the Plymouth
Housing Alliance and West Hennepin Community Builders in the Seven Ponds neighborhood.
Commissioner Johnson asked where else these funds would go? HRA Supervisor Goldsmith said these are
discretionary funds that could go anywhere, but they are designated towards affordable housing.
Commissioner Johnson asked if we could amend the motion to put a cap on this, to say "and no more".
Chair Crain made a motion to accept the staff recommendation, but to amend it to say, "no more funds will
be given". Commissioner Brown seconded it as amended. Commissioner Bildsoe said he will support it
but reluctantly as we will run out of money and it is not the best use of taxpayer money.
Vote. 4 Ayes. Motion adopted unanimously.
5a. PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORTS
Plymouth Towne Square Manager Burnham was not present and there were no questions.
5b. PLYMOUTH TOWNE SQUARE MANAGEMENT AGREEMENT WITH WALKER
MANAGEMENT
Chair Crain said they went through a formal review of the services provided by Walker 3 years ago. He
understands the need for the increase, but felt that 15% was too high. HRA Supervisor Goldsmith said
Walker felt that since they've had only one other increase in five years, they needed to institutionalize this
increase. Supervisor Goldsmith said they are actually only giving a 1.1% increase which is reasonable in
terms of services they provide. He said we couldn't do any better and we don't have the resources to solicit
for new proposals. He recommends strongly that it is to the advantage of the agency to approve this.
Commissioner Johnson said this is why she was trying to add a staff person so they could take on these
things. Commissioner Bildsoe asked if it is possible to put this out for bid next year? Director Hurlburt
said we can do that every year. We can also evaluate hiring our own staff vs. hiring another management
company.
MOTION by Commissioner Bildsoe, seconded by Commissioner Johnson, recommending that the Board
authorize the Chair and Executive Director to execute a revised Property Management Agreement between
the HRA and Walker Management, Inc. increasing the base management fee to $3,335 and extending the
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Agreement for an additional year through December 31, 2000 and stipulating that proposals would be
solicited for a new agreement for January 1, 2001.
Vote. 4 Ayes. Motion adopted unanimously.
6. RESOLUTION APPROVING THE T.RA.LL.S. FAMILY SELF-SUFFICIENCY PROGRAM
BUDGET AND EXTENSION OF THE PROGRAM AGREEMENT
HRA Supervisor Goldsmith said the report is typical of previous years, last year they reduced funding for
the program, this year we are recouping a little of that reduction. Employment Action Centers received a
2,000 grant from the Kopp Foundation that would be applied toward the 1999-2000 budget.
MOTION by Commissioner Bildsoe, seconded by Commissioner Johnson, recommending that the HRA
Board approve the budget and extension of the program agreement for the T.R.A.LL.S. Family Self -
Sufficiency Program.
Vote. 4 Ayes. Motion adopted unanimously.
7. JULY HRA MEETING DATES
The meeting was scheduled for July 15, but as it is unlikely that the budget will be ready in time, it will be
re -scheduled for Wednesday, July 21 at 7 p.m.
Commissioner Brown asked if the Housing Plan would be included in the packet. Director Hurlburt said
that preliminary material should be available, but not the entire Plan.
8. NOMINATION AND ELECTION OF OFFICERS
The election was tabled until the two vacancies on the Board were filled by the City Council.
9. OTHER BUSINESS
There was no other business.
Meeting adjourned at 9:42 p.m