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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 11-16-2000MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY November 16, 2000 PRESENT: HRA Chair Brad Brown, HRA Commissioners Leon Michlitsch & Dick Abel ABSENT: HRA Commissioners Tim Bildsoe & Susan Henderson STAFF PRESENT: Executive Director Anne Hurlburt, HRA Supervisor Ed Goldsmith, Planning Manager Barb Senness, HRA Specialist Rebecca Stoen, HRA Specialist Melissa Carnicelli, Senior Clerk/Typist Barb Peterson OTHERS PRESENT: Planning Commission Liaison Kapila Bobra, Walker Representative Sarah McDonagh, Plymouth residents Howard Hanson and Gary & Janet Bohn. 1. CALL TO ORDER A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair Brown on November 16, 2000 at 7:05 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Michlitsch, seconded by Commissioner Abel to recommend approval of the September 21, 2000 meeting minutes. Vote. Ayes. Motion adopted unanimously. 3a. PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORT Walker Management has contracted Sarah McDonagh as interim Housing Manager prat Plymouth Towne Square during Manager Burnham's extended absence. She -a -Rd was at the meeting to present the budget. She also presented :t„,f.s of eeree -fi—tte other issues including -as staff changes, the internal waiting list for very low subsidies and occupancy figures. Discussion followed. 3b. PLYMOUTH TOWNE SQUARE 2001 OPERATING BUDGET Discussion was held regarding the new budget. Capital expenditures for EYE 2001 were presented. The installation of ^ fountain in font of the building was discus It was asked if the Board would want to increase the amount budgeted for very low subsidies. The HR -A's proposed 2001 General Fund budget included additional funds for the rent subsidies. Chair Brown asked if the residents know what status they are. Sarah stated that they do. Chair Brown asked what would happen if they did not authorize additional funds for very low subsidies. Director Hurlburt stated that it was a concern when we allowed these people to move in at a very low subsidy. They do not have affordable housing at the rate of 30%. Director Hurlburt said we had hoped to meet our goal of affordability in future years. Supervisor Goldsmith said we could think about providing it on the basis of hardship for additional assistance. It was stated that we should decide tonight whether to increase the budgeted amount for subsidies and later decide if and how to allocate the fundsdivide it Commissioner Michlitsch asked about assets of the people. The rent calculation includes any income generated from it is figured from the income ^m of the assets. Director Hurlburt mentioned that this budget does not include any rent increase. Plymouth Housing and Redevelopment Authority November 16, 2000 Page 31 Discussion was held regarding the installation of a small pond with a fountain in the garden area in front of the building. Safah said there is aii area iii fr-ei-A of the bttildiR# by the gar-deii plots aftd it It was decided to include the money in the budget for the fountain but not authorize the installation until more information was provided about design and maintenance and operating costsvete er it ui-Ail we MOTION by Commissioner Michlitsch, seconded by Commissioner Abel recommending that the HRA Board increase the HRA rent subsidy in the proposed Plymouth Towne Square 2001 Operating Budget to $266,000 approveifig the modified budget as proposed subject to further discussion and specific approval of the HRA Board regarding any increase in the number of very low income subsidies provided to residents of the building and installation of the proposed pond and fountain in accordance with Section 7.03 of the Property management Agreement with Walker Development and Management, Inc. Vote. 3 Ayes. Motion adopted unanimously. 4. ELMHURST/ELMHURST GATEWAY NEIGHBORHOOD STUDY Chair Brown explained the function of the HRA to the Elmhurst residents who were present. They were Howard Hanson and Gary & Janet Bohn. Director Hurlburt said we need to talk about how to notify other residents of the neighborhood and that we will talk about how to involve the neighborhood before additional steps are taken. Planning Manager Barb Senness gave a presentation on the area. Staff had reviewed and taken many pictures of the exteriors of homes in the area_ and d scussionDiscussion of the staff s evaluation of the area followed. It was noted that a considerable amount of asked ho man^ building permits have been taken out for that --these areas. This indicates that owners have been investing in maintainingandnd upgrading properties. Cor riss oner Mieblitseh > rough dp abandoned houses i that area. A very low number of Hhouses arebeuig rented out is a very low number in theise areas. Homeownership is very high. However, tTo be buildable or to add on to the homes, many of the lots would need -a variances. The City rezoned a few years ago, but many of the homes are still not conforming under the new zoning. Another problem is that some of the streets are not improved. Many are much narrower than in other parts of the city. SomeMany areas do not eveurhave adequate access for fire protection. There have not been many complaints regarding outside junk in yards. Director Hurlburt said it would be interesting to get the age of the residents from the census. Zoning actions were discus sedlooked ^*. It would be possible to re -zone the area to make many more homes conform to the City's zoning ordinance. Water quality was also discussed relative to the areas' proximity to Medicine Lakelooked at. A number of other issues were identified. The general consensuslt was felt that complete redevelopment is not needed. Renovation and rehab with some spot clearance as needed can be done but not -a general clearing of the area was not warranted. The City has already taken action to condemn and have demolished a number of uninhabitable homes in the areas. Safety needs to be addressed and zoning also. It is a desirable area because of the location. Because of the high value of the land, City acquisition of properties would be prohibitively expensive. Encouraging upkeep, maintenance, and renovation of existing structures would be a much less expensive approach and Plymouth Housing and Redevelopment Authority November 16, 2000 Page 32 would maintain the affordability of many of the homes in the area. Pal of these ,.e fiery ..,Otfl Options were presented that the city couldan look at. Greater Re4&r-eenforcementfig of housing the codes T in the area would help it cosmetically. The HRA could market rehab and renovation programs in theseis areas. They could also acquire sefRe-44he-homtises in the area as they become available. To do the streets right would be very expensive and require changing the character of the area. Commissioner Michlitsch asked what is being asked of us short range and long range. Chair Brown said that we want to know what the HRA can do. Commissioner Michlitsch suggested targeting the area with our rehab program. Planning Manager Senness said we want to fix problems as they occur.-ateCommissioner Abel felt it was important to provide emergency access to all of the homes. Chair Brown proposes we pass a resolution to direct;riisa-det the HRA staff to develop a program to target this area and send other issues, such as rezoning and redesigning some of the streets to the City Council gtid* have rreeesses iii place r ... Mr. Bohn encouraged the City to improve lots as they become available. Maybe smaller homes could be built on the lots but improve the quality. MOTION by Chair Brown that the HRA endorse the staff report and ttRde .take ali e ..t to fi-,a e recommendations to the City Council tto be considered for implementation, especially those related to rezoning the areas and fly to ask Ppublic Wworks to do a study ofi3 the streets. Supervisor Goldsmith said that staff could begin to look at various options and identify additional funding sources for the added work that would be reauired. The HRA's current resources are being utilized throughout the City. Additional funding would be needed to target these areas.we Also we need toWe shett! identify the potential customers as part of this processbefor-e vN,e a, eide .N.>. A to do HRA Specialist Stoen agreed that we needed to Formatted carefully consider the impact of taking City-wide resources and targeting them to these areas, if no additional funds are available. Vote. 3 ayes. Motion adopted unanimously. 5. TAX INCREMENT HOUSING ASSISTANCE PROGRAM TSIHAPI Supervisor Goldsmith explained the TIHAP. There have been discussions between the staff ity Council and the City's Bond Counsel as to how the Ceity could use the new state authorization to pooled tax increment funds for affordable housing anywhere in the CitX. x7^„la ;t make sense for the City to adopt a program whereby pooled funds would be used for r eet . Supervisor Goldsmith had suggested to Bond Counsel that it would be much more efficient for the City to be able to create one programtopool these funds, rather than have to manage each pooled project as a separate tax increment district. Counsel agreed and staff, with Counsel's input developed the TIHAP as the mechanism for the City to be able to pool limited excess tax increments for affordable housingthroughouthroughout the City. Under the TIHAP Tthe initial review of funding requestsdeveloopmens would be referred come o theto the HRA for its and they wouldla p ss - aleg recommendations to the City Council. Proposals would have to conform to it conforms Plymouth Housing and Redevelopment Authority November 16, 2000 Page 33 State requirements, which currently limit such assistance to rental housing. The draft attached to the report includes a list of projects already identified as being potential beneficiaries reeipiefA-s-of TIHAP. A list of beiie&s is listed iii the report. Chair Brown asked if rental meant multi housing. Supervisor Goldsmith did not think it mattered if it were scattered or on one site. MOTION by Commissioner Abel, seconded by Commissioner Michlitsch to-that the HRA Board recommend adoption offeview the attached draft of the Coy-aftPlymouth Tax Increment Housing Assistance Program TI APS to the Plymouth City Council. Vote. 3 ayes. Motion adopted unanimously. 6. VILLAGE AT BASSETT CREEK TOWNHOME - Purchase Option Supervisor Goldsmith explained the provision that we had as part of the City's Tax Increment Development Agreement with Rottlund Homes that the HRA would have the first ight of first refusal to acquire, prior to resale the townhomes that had been sold with City negotiate discounts. As a result, one homeowner has approached the HRA to acquire her home before she putsting ithero Rouse on the market. The house has not yet been owned for one calendar year. It looks like the increase in value would be approximately 10%. The Board Member and staff discussed the pros and cons of acquiring the home in order to market it to another low to moderate income first time homebuyer and maintain the lon -te affordability of the home. following ;tows are for the Board's , sider^tion Would the Board consider entering i t„ the purchase of the property. 2.Co la we a^a a subsequent purchaser of the property. Formatted: Bullets and Numbering 3--.1. We do not know of anyone but a have sources„ fid^ buyer. It ay take three months and hopefully not longer than six months. The HRAW-e would need to pick up the association fee and also utilities for the home until it were resold. Those costs could be factored into the resale. 4. The advantages are that we can make better use of restrict' - - er—Asandt reisemugh money in theThe HRA has sufficient funds in the-Aaffordable Hhousing Aaccount to buy this property and pay for fees, utilities, and other holding costs. MOTION by Commissioner Abel, seconded by Commissioner Michlitsch, recommending that the HRA Board authorize the Executive Director and designated staff to negotiate a purchase agreement for an amount not to exceed the estimated maximum purchase price of $124,900 for Plymouth Housing and Redevelopment Authority November 16, 2000 Page 34 the property at 944 Trenton Lane North, Lot 41, Block 2, Village at Bassett Creek, PID 36-118- 22240064. 6-118- 22240064. Vote. 3 Ayes. Motion adopted unanimously. 8. Other Business Supervisor Goldsmith passed out an invitation to a Public Meeting to discuss the regional fair housing planning project currently underway. Supervisor Goldsmith announced that Sandra Spigner, Met Council member, made a presentation to the City Council of a facsimile check 4or $200,000 from the Metropolitan Council's Livable Communities Housing Incentive Account. This amount along with $75,000 from the MHFA and $25,000 from Interfaith Outreach and Community Partnersse vN'e will be combined with $75,000 of HRA CDBG funding for a total of $375,000 to assist homebuyers 275,000 aiid the eepAr-ibtAiei of $25,000 -in the Rottlund Reserve project. The Livable Communities Demonstration Account Grant for the neighborhood transit stop and trail facility, pedestrian and trail amenities, and low resource landscaping in the Reserve was not awarded. Supervisor Goldsmith spoke about the anticipated opening of the Section 8 waiting list at the end of January 2001. Chair Brown announced that he would be resigning from the HRA at the end of the yea -r -p, _s as he will beis moving out of Plymouth in 2001. 9. ADJOURMENT Meeting adjourned at 9:15 p.m MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY 01) November 16, 2000 PRESENT: HRA Chair Brad Brown, HRA Commissioners Leon Michlitsch & Dick Abel ABSENT: HRA Commissioners Tim Bildsoe & Susan Henderson STAFF PRESENT: Executive Director Anne Hurlburt, HRA Supervisor Ed Goldsmith, Planning Manager Barb Senness, HRA Specialist Rebecca Stoen, HRA Specialist Melissa Camicelli, Senior Clerk/Typist Barb Peterson OTHERS PRESENT: Planning Commission Liaison Kapila Bobra, Walker Representative Sarah McDonagh, Plymouth residents Howard Hanson and Gary & Janet Bohn. 1. CALL TO ORDER A meeting of the Plymouth Housing and Redevelopment Authority was called to order by ChairBrownonNovember16, 2000 at 7:05 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Michlitsch, seconded by Commissioner Abel to recommend approval of the September 21, 2000 meeting. minutes. Vote. Ayes. Motion adopted unanimously. 3a. PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORT Walker Management has contracted Sarah McDonagh as interim Housing Manager at Plymouth Towne Square during Manager Burnham's extended absence. She was at the meeting to present the budget. She also presented other issues including staff changes, the internal waiting list for very low subsidies and occupancy figures. Discussion followed. 3b. PLYMOUTH TOWNE SQUARE 2001 OPERATING BUDGET Discussion was hr!d regarding the new budget. It was asked if the Board would want to increase the amount budgeted for very low subsidies. The HRA's proposed 2001 General Fund budget included additional funds for the rent subsidies. Chair Brown asked if the residents know what status they are. Sarah stated that they do. Chair Brown asked what would happen if they did not authorize additional funds for very low subsidies. Director Hurlburt stated that it was a concern when we e'i-3wed these people to move in at a very low subsidy. They do not have affordablehousingattherateof30%. Director Hurlburt said we had hoped to meet our goal of affordabilityinfutureyears. Supervisor Goldsmith said we could think about providing it on the basis of hardship for additional assistance. It was stated that we should decide tonight whether to increase the budgeted amount for subsidies and later decide if and how to allocate the funds. Commissioner Michlitsch asked about assets of the people. The rent calculation includes any income generated from assets. Director Hurlburt mentioned that this budget does not include anyrentincrease. Discussion was held regarding the installation of a small pond with a fountain in the garden area in front of the building. It was decided to include the money in the b::dget for the fountain but Plymouth Housing and Itcdewelul nttnt Authority NmLm*u 14.1000 Pugs 31 not authorize the installation until more information was provided about design t maintenance and operating costs. MOTION by Commissioner Michlitsch, seconded by Commissioner Abel recommending that the HRA Board increase the .141A writ subsidy in the proposed Plymouth Towne Square 2001 Operating Budget to $266,000 approve the modified budget as proposed subject to further discussion and specific approval of the HRA Board regarding any increase in the number of very low income subsidies provided to residents of the building and installation of the proposed pond and fountain in accordance with Section 7.03 of the Property management Agreement with Walker Development and Management, Inc. Vote. 3 Ayes. Motion adopted unanimously. 4. ELMHURSVELMHURST GATEWAY NEIGHBORHOOD STUDY Chair Brown explained the function of the HRA to the Elmhurst residents who were present. They were Howard Hanson and Gary & Janet Bohn. Director Hurlburt said we need to talk about how to notify other residents of the neighborhood and that we will talk about how to involve the neighborhood before additional steps are taken. Planning Manager Barb Senness gave a presentation on the area Staff had reviewed and taken many pictures of the exteriors of homes in the area. Discussion of the staffs evaluation of the area followed. It was noted that a considerable amount of building permits have been taken out for these areas. This indicates that owners have been investing in maintaining and upgrading properties. A very low number of houses are rented in these: areas. Homeownership is very high. However, to be buildable or to add on to the homes, many of the lets would need variances. The City rezoned a few years ago, but many of the homes are still not conforming under the new zoning. Another problem is that some of the streets are not improved. Many are much narrower than in other parts of the city. Some areas do not have adequate access for fire protection. There have not been many complaints regarding outside junk. in yards. Director Hurlburt said it would be interesting to get the age of the residents from the census. Zoning actions were discussed. It would be possible to re -zone the area to make many more homes conform to the City's zoning ordinance. Water quality was also discussed relative t9 the areas' proximity to Medicine Lake. A number of other issues were identified. The general consensus was that complete redevelopment is not needed. Renovation and rehab with some spot clearance as needed can be done but a general clearing of the area was not warranted. The City has already taken action to condemn and have demolished a number of uninhabitable homes in the areas. Safety needs to be addressed and zoning also. It is a desirable area because of the location. Because of the high value of the land, City acquisition of properties would be prohibitively expensive. Encouraging upkeep, maintenance, and renovation of existing structures would be a much less expensive approach and would maintain the affordability of many of the homes in the area i Options were press rated that the city could look at. Greater enforcement of housing codes in the dv area would help it cosmetically. The HRA could market rehab and renovation programs in these areas. They could also acquire homes in the area as they become available. To do the streets right would be very expensive and require changing the character of the area. Commissioner Michlitsch asked what is being asked of us short range and long range. Chair Brown said that we Plymouth lioming and Redaclopnrnt Authority Nave"*" IN 2o1M1 Page 32 want to know what the HRA can do. Commissioner Michlitsch suggested targeting the area with our rehab program. Planning Manager Senness said we want to fix problems as they occur. Commissioner Abel felt it was important to provide emergency access to all of the homes. Chair Brown proposes we pass a resolution to direct the HRA staff to develop a program to target this area and send other issues, such as rezoning and redesigning some of the streets to the City Council. Mr. Bohn encouraged the City to improve lots as they become available. Maybe smaller homes could be built on the lots but improve the gltality. MOTION by Chair Brown that the HRA endorse the staff report and recommendations to the City Council to be considered for implementation, especially those related to rezoning the areas and to ask Public Works to do a study of the streets. Supervisor Goldsmith said that staff could begin to look at various options and identify additional funding sources for the added work that would be required. The HRA's current rel;ourees are being utilized throughout the City. Additional funding would be needed to target these areas. Also we need to idenit., .ae potential customers as part of this process. HRA Specialist Stoen agreed that we needed to carefully consider the impact of taking City-wide resources and targeting them to these areas, if no additional funds are available. . Vote. 3 ayes. Motion adopted unanimously. t 5. TAX INCREMENT HOUSING ASSISTANCE PROGRAM (TIHAP) Supervisor Goldsmith explained the TIHAP. There have been discussions between the staff and the City's Bond Counsel as to how the City could use the new state authorization to pool tax increment funds for affordable housing anywhere in the City. Supervisor Goldsmith had suggested to Bond Counsel that it would be much more efficient for the C' he able to create one program to pool these funds, rather than have to manage each poole- s a separate tax increment district. Counsel agreed and staff, with Counsel's input deveio• - TIHAP as the mechanism for the City to be able to pool limited excess tax increments'.. r affordable housing throughout the City. Under the TIHAP the initial review of funding requests would be referred to the HRA for its recommendation to the City Council. Proposals would have to conform to State requirements, which currently limit such assistance to rental housing. The draft attached to the report includes a list of projects already identified as being potential beneficiaries of TIHAP. Chair Brown asked if rental meant multi housing. Supervisor Goldsmith did not think it mattered if it were scattered or on one site. MOTION by Commissioner Abel, seconded by Commissioner Michlitsch that the HRA Board recommend adoption of the attached draft of the Plymouth Tax Increment Housing Assistance Program (TIHAP)to the Plymouth City Council. Vote. 3 ayes. Motion adopted unanimously. 6. VILLAGE AT BASSETT CREEK TOWNHOME — Purchase Option Supervisor Goldsmith explained the provision that we had as part of the City's Tax Increment Development Agreement with Rottlund Homes that the HRA would have the right of first refusal Plynwulh 116using and R9dnd0Pnwn1 Audwdty Nowmber16.2000 Page 33 to acquire, prior to resale the townhomes that had been sold with City negotiated discounts. As.a result. one homeowner has approached the HRA to acquire her home before she puts it on the market. The house has not yet been owned for one calendaryear. It looks like the increase invaluewouldbeapproximately10%. The Board Member and staff discussed the pros and cons of acquiring the home in order to market it to another low to moderate income first time homebuyer and maintain the long-termaffordabilityofthehome. The HRA would need to pick up the association. fee and also utilitiesforthehomeuntilitwereresold. Those costs could be factored into the resale. The HRA has sufficient funds in the Affordable Housing Account to buy this property and payforfees, utilities, and other holding costs. MOTION by Commissioner Abel, seconded by Commissioner Michlitsch, recommending thattheHRABoardauthorizetheExecutiveDirectoranddesignatedstafftonegotiateapurchase agreement for an amount not to exceed the estimated maximum purchase price of $124,900 for the property at 944 Trenton Lane North, Lot 41, Block 2, Village at Bassett Creek. PID 36-118- 22240064. Vote. 3 Ayes. Motion adopted unanimously. 8. Other Business Supervisor Goldsmith passed out an invitation to a Public Meeting to discuss the regional fairhousingplanningprojectcurrentlyunderway. Supervisor Goldsmith announced that Sandra spigner, Met Council member, made a presentation to the City Council of a facsimile check for $200,000 from the Metropolitan Council's Livable Communities Housing Incentive Account. This amount along with $75,000fromtheMHFAand $25,000 from Interfaith Outreach and Community Partners will be combined with $75,000 of HRA CDBG funding for a total of $375,000 to assist homebuyers intheRottlundReserveproject. The Livable Communities Demonstration Account Grant for the neighborhood transit stop andtrailfacility, pedestrian and trail amenities, and low resource landscaping in the Reserve was notawarded. Supervisor Goldsmith spoke about the anticipated opening of the Section 8 waiting list at the endofJanuary, 2001. Chair Brown announced that he would be resigning from the HRA at the end of the year, as hewillbemovingoutofPlymouthin2001. 9. ADJOURMENT Meeting adjourned at 9:1 S p.m.