HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-15-2001MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
February 15, 2001
PRESENT: HRA Commissioners Tim Bildsoe, Leon Michlitsch, and Steve Ludovissie
ABSENT: HRA Commissioners Susan Henderson and Sandy Hewitt, and Planning
Commission Liaison Kapila Bobra
STAFF PRESENT: Executive Director Anne Hurlburt, HRA Supervisor Ed Goldsmith, HRA
Specialist Rebecca Stoen, HRA Specialist Melissa Carnicelli, and Office Support Representative
Janice Bergstrom
1 CALL TO ORDER
A meeting of the Plymouth Housing and Redevelopment Authority was called to order by
Vice Chair Tim Bildsoe on February 15, 2001 at 7:05 p.m.
2 INTRODUCTION AND ADMINISTRATION OF OATH OF OFFICE FOR NEW
COMMISSIONER SANDY HEWITT
Commissioner Hewitt was not present for the induction process. It will be held at a later time.
3 APPROVAL OF MINUTES
MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie, to
recommend approval of the January 18, 2001, meeting minutes.
Vote. 3 Ayes. Motion adopted unanimously.
4 FINANCIAL ASSISTANCE FOR PROPOSED STONE CREEK VILLAGE
DEVELOPMENT
Supervisor Goldsmith gave an overview of the request for assistance for the Stone Creek Village
rental development at the northeast quadrant of State Highway 55 and Medicine Lake Drive
West. The Minnesota Housing Finance Agency (MHFA) is soliciting proposals for its February
funding cycle. Most of the available funding is expected to be awarded as supplemental funds
for previously approved proposals. Funding for new proposals may be available for only one or
two developments. Supervisor Goldsmith has discussed with MHFA and Dominium ways the
proposal would receive the greatest number of ranking points in the MHFA funding process.
Local financial support would provide a number of additional points, but MHFA requires a firm
local commitment for such support.
Supervisor Goldsmith stated that it makes sense for the Plymouth HRA to make a commitment to
this proposal so it could earn additional points in the MHFA process. Supervisor Goldsmith
proposed that after holding the public hearing and adopting the Resolution recommending the re-
allocation of prior years CDBG funding, the Plymouth HRA adopt the resolution committing up
to $366,575 to provide a portion of the financing for the Stone Creek Village proposal.
Although the HRA funds would be firmly committed, the proposal would still be contingent
upon approvals from other funding sources and the City of Plymouth. If the developer does not
get other funding or the City does not approve the proposal, the commitment of HRA funds
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February 15, 2001
Page 2
would become irrelevant and the funds would then be available to the HRA for other proposals.
Also, if the HRA made the commitment, and other local funds became available, those funds
could be substituted and the HRA could reallocate the funds back to other uses.
Commissioner Michlitsch inquired as to how much land is involved in this project. The proposal
is for a 140-unit development on about 10 acres.
Commissioner Ludovissie asked how the units will be split. Supervisor Goldsmith said this
detail is not known yet as the building design has not been started. An outline of the proposal
has been discussed with City Planning Staff and they are comfortable with Dominion’s concept.
5 PUBLIC HEARING ON CDBG PROGRAM FUNDING FOR 2001, REALLOCATION
OF PRIOR YEARS' FUNDING, CITIZEN PARTICIPATION PLAN, AND ANTI-
DISPLACEMENT AND RELOCATION ASSISTANCE POLICY
Vice-Chair Bildsoe opened the public hearing.
Vice Chair Bildsoe introduced Larry Nelson, who represented the YMCA, 7601 42nd Avenue
North, New Hope MN. The YMCA's Point Northwest Program is requesting $7,500 of CDBG
funding and thanked the Plymouth HRA for previous support. Because of previous funding the
YMCA was able to serve 24 youth and families in Plymouth last year. Their programs helped
keep kids with their families or helped them to find decent housing in the area with supportive
services from their program.
Commissioner Bildsoe asked if future needs for Plymouth are still strong. Mr. Nelson responded
affirmatively and feels there is a strong need for the services they provide. Mr. Nelson
mentioned another area of need is for permanent housing for older kids.
Vice Chair Bildsoe introduced Maxine Timm, who represented Community Action for Suburban
Hennepin (CASH), 33 Tenth Avenue South #150, Hopkins MN. Ms. Timm thanked the HRA
for previous support and hopes for continued support in the amount of $15,000 which will be
used for a variety of services for low- and moderate-income homeowners and first time
homebuyers. CASH served 113 Plymouth households last year. She indicated that as a result of
HomeLine's continued service to area renters, there was a change in their request to serve a
minimum of 100 homeowner households.
Commissioner Ludovissie asked about the process to prevent mortgage foreclosures. Ms. Timm
explained that they provide case management helping homeowners with budgeting, refinancing
and negotiating with their lender. She added their success ratio in averting foreclosures last year
was over 80%.
Supervisor Goldsmith pointed out that the Plymouth HRA and Staff have worked closely with
CASH on their homebuyer training, rehab, and ownership programs, and feels CASH
supplements and helps make a success of HRA homeowner programs. Mr. Goldsmith feels there
is a good strong working relationship between our agencies that supports quality programs.
Plymouth Housing and Redevelopment Authority
February 15, 2001
Page 3
Vice Chair Bildsoe introduced Charlie Warner who is the Executive Director of HomeLine. Mr.
Warner said HomeLine separated from CASH 2 years ago and now acts as an independent
agency whose focus is on renters, especially those that are low-income. The tenant hotline has
taken 2,200 calls from Plymouth since they started in 1992. Their agency advises tenants on
issues with landlords, educates high school students about the realities of being a tenant and the
importance of maintaining a good rental record. Mr. Warner added that their agency also worked
on the Kimberly Meadows townhome project when there was an attempt to convert this Section 8
subsidized development to market rate rents. MHFA will now have another 10 years of
subsidized housing at Kimberly Meadows.
Supervisor Goldsmith endorsed HomeLine’s services, support for Plymouth residents, and
working relationship with HRA staff. He added they also assist Section 8 tenants who have
issues with their landlords. Vice Chair Bildsoe asked if this is the first year HomeLine has
applied for funding. Mr. Warner said it is, as they are now an independent entity; they used to be
part of CASH and until last year continued to receive funding from CASH.
Vice Chair Bildsoe introduced Tim Nelson, CEO of Hammer Residences. Mr. Nelson thanked
the HRA for the HRA's past support and the opportunity to apply for additional funding.
Hammer Residences service 123 people with developmental and other disabilities of which 57
live in Plymouth. Their goal is to make as many of their homes as possible handicap accessible.
Their request is specifically for Tyler Home that serves 4 non-ambulatory people. Tyler Home
has been made accessible except for the bathroom. This is detrimental for the residents and there
is a risk of injury to staff as they assist residents with bathing.
Commissioner Ludovissie inquired as to the type of home involved. Mr. Nelson replied that
Tyler Home is 1500 square feet and was built in the 1970’s. Supervisor Goldsmith added that
Hammer Residence has a long and successful track record and they provide needed housing.
Vice Chair Bildsoe introduced Carla Jacobson who was present on behalf of the Greater
Minneapolis Daycare Association (GMDCA), which serves low and moderate-income families.
Ms. Jacobson felt there is a misunderstanding about their spending levels and what the record is
showing in unspent balances. Ms. Jacobson feels the balances are not an accurate reflection of
the spend down amount because of a combination of factors which include a complex state
sliding fee scale, copays at various state levels, and a necessity to delay funding until they are
certain that sufficient funds are available to assist a family until that can get onto the County
subsidy program.
Supervisor Goldsmith agreed their funding is a challenge and said staff analyzed the spending
history of their funds. Given the balances at the end of the year Mr. Goldsmith felt the
recommendation is adequate to what we have seen. Additionally, the major focus of our funding
is on housing. Funding requests have become more competitive in terms of direct housing
services versus related services. We may be able to reallocate CDBG funds later in the year for
GMDCA, but at this time the staff stands behind their recommendation.
Ms. Jacobson commented that additionally the governor’s budget would reduce day care
assistance by lowering the eligibility thresholds to only very low-income families. She feels this
will significantly change the number of families who need their assistance.
Plymouth Housing and Redevelopment Authority
February 15, 2001
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Vice Chair Bildsoe introduced Carolyn Wick who manages the Elder Express Program for
PRISM. They serve seniors in providing rides to medical and dental appointments in addition to
some personal shopping. Between January and November of 2000, 29 Plymouth households
were served. She stated they also provided over 300 rides to Plymouth clinics located on the east
side of 494. The demand continues to grow and they provide 3-10 rides to Plymouth per week.
Vice Chair Bildsoe inquired if the Elder Express uses a van. Ms. Wick replied they use vans and
mini buses. Commissioner Ludovissie asked about the fee that is charged. Ms. Wick responded
they suggest an amount based on what people can afford. Vice Chair Bildsoe asked if the money
will be used only for Elder Express. Ms. Wick replied affirmatively.
Commissioner Ludovissie asked how a person would qualify for this service and if age is a
factor. Ms. Wick said the service is for persons who live mainly in the area. Age is a factor but
no specific age limit is enforced. They serve people with disabilities regardless of age. Ms.
Wick said 80% of the rides are for medical and dental visits with some trips to their food shelf.
Supervisor Goldsmith stated this is the first year they have asked for funding and feels there is
4,000 that could be allocated and added that senior services does receive a priority under the
Consolidated Plan that governs CDBG funding.
Specialist Carnicelli indicated that no one was present to represent Family Hope Services. They
run a counseling program for at risk teens and have received funding in the past. Ms. Carnicelli
gave an overview of the staff report.
Commissioner Bildsoe inquired about the administration funding.
Supervisor Goldsmith said HUD places a 20% cap for general administrative costs, not related to
staff administration of specific program activities. We have allocated the full 20% toward
administration and then at the end of the year if there are unexpended funds, they are reallocated
into other direct service areas. Doing this gives us greater flexibility to meet unexpected direct
service needs.
Vice Chair Bildsoe closed the public hearing.
5a APPLICATION FOR AND ALLOCATION OF FISCAL YEAR 2001 COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS AND THE REALLOCATION OF
122,011.57 IN PRIOR YEAR FUNDS
Supervisor Goldsmith advised the Board that the draft resolution submitted to them needed to be
revised to include the reallocation of $11.57 in unspent Park and Recreation scholarship funds
from a prior year to the Affordable Housing Development program activity.
MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie,
recommending that the Board adopt the revised resolution recommending the application
and allocation of fiscal year 2001 CDBG funds and the reallocation of $122,011.57 in prior
year funds to the Plymouth City Council.
Plymouth Housing and Redevelopment Authority
February 15, 2001
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Roll Call Vote. 3 Ayes. HRA Resolution 2001-05 adopted unanimously.
5b CITIZEN PARTICIPATION PLAN AND ANTI-DISPLACEMENT AND
RELOCATION ASSISTANCE POLICY
Specialist Carnicelli gave an overview of the staff report. She said the most significant revisions
are related to the public hearing process. The HRA will continue to generally hold a public
hearing in February regarding CDBG funding recommendations. The public hearing on the
annual evaluation of program performance will generally be held with the Hennepin Country
Consortium. However the HRA could choose to hold its own separate public hearing, if
necessary.
Specialist Carnicelli explained that staff revised the Minimizing Displacement section of the
Anti-Displacement and Relocation Assistance Policy. The previous plan didn’t go over specific
ways in which we would minimize the displacement. Now there are specific examples of how
the City will minimize displacement through relocation arrangements, policy review, counseling
resources and code enforcement.
Commissioner Ludovissie inquired as to how the citizen participation plan is working and if
there is a more creative or innovative way of obtaining greater participation. Specialist Carnicelli
replied it is status quo for all cities. Director Hurlburt said the only persons who generally attend
the public hearings are those who have a direct benefit or feel they may be harmed in some way.
The general public doesn’t participate.
Commissioner Ludovissie feels there is a value in citizen participation. Specialist Carnicelli said
in the Section 8 Resident Advisory Board even direct contact doesn’t generate participation and
in that instance specific people are contacted. Commissioner Ludovissie asked if this citizen
participation plan is in regard to all HRA activities. Specialist Carnicelli replied this pertains only
to CDBG.
Supervisor Goldsmith added that if people have something to gain or if it is controversial there is
citizen involvement. The Plymouth HRA is able to get a lot done, able to fund and provide
services, and support affordable housing without controversy. Agencies who come before the
HRA for funding are the advocates for their clients and this represents an indirect form of citizen
participation.
MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie,
recommending approval of Resolution 2001-06
Roll Call Vote. 3 Ayes. HRA Resolution 2001-06 adopted unanimously.
Upon adoption of the CDBG Resolutions, Supervisor Goldsmith recommended that the Board
complete the consideration of Agenda item #4. Financial Assistance for Proposed Stone Creek
Village Development
Plymouth Housing and Redevelopment Authority
February 15, 2001
Page 6
MOTION by Commissioner Ludovissie , seconded by Commissioner Bildsoe,
recommending that the Board adopt the attached resolution recommending allocation of
CDBG and HRA Affordable Housing Account funds to provide a portion of the financing
for the Stone Creek Village development proposal.
Roll Call Vote. 3 Ayes. HRA Resolution 2001-07 adopted unanimously.
6 SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP)
CERTIFICATION
Specialist Carnicelli gave an overview of the staff report. She stated the previous review was
conducted in August for the June 30, 2000 end of fiscal year. Because of a change in the HRA's
Section 8 fiscal year to one ending on December 31st, some activities that were reviewed in this
assessment occurred before the last SEMAP review. Although procedures regarding file
documentation were changed as a result of the previous review, some of the file documentation
reviewed for this latest assessment occurred prior to the changes. This resulted in scores that
were lower than expected, but still within the acceptable range. We anticipate that scores for the
next assessment will be higher. Other indicators in the SEMAP are obtained from the HRA's
independent financial audit and program data transmitted electronically to HUD each month.
Vice Chair Bildsoe asked if we have a local HUD representative and how are we viewed by our
local representative. Specialist Carnicelli replied that our representative, who is located in
Minneapolis, recognizes the HRA as a very good agency. Because of our performance, the HRA
has been subject to very little oversight from HUD.
MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe, to adopt the
resolution approving the Section 8 Management Assessment Program Certification for
submission to HUD.
Roll Call Vote. 3 ayes. Resolution 2001-08 adopted unanimously.
7 DECLARATION OF RESTRICTIVE COVENANTS FOR THE BASSETT CREEK
TOWNHOME
Supervisor Goldsmith gave an overview of the staff report. He explained that a revised
Declaration of Restrictive Covenants would replace the original one by the Rottlund Company
for the purpose of strengthening long term resale restrictions on the property. Commissioner
Ludovissie questioned if this will hamper resale of the unit in the future. He expressed concern
about becoming too restrictive. Supervisor Goldsmith stated that will be part of the City
Attorney’s review. The Declaration will also be reviewed with potential lenders to obtain their
prior approval.
Supervisor Goldsmith advised that before the staff would file the City's recision of the existing
Declaration, we would have to have a new one that is workable and one that would not inhibit
financing for the home. The goal is to maintain long term affordability of the home through a
workable process.
Plymouth Housing and Redevelopment Authority
February 15, 2001
Page 7
Supervisor Goldsmith indicated that appreciation of the home's value would continue to be based
upon the Minneapolis Area Association of Realtors report on average area home values, which
was about 10% last year. Director Hurlburt indicated that the average increase in the City
Assessor's values for 2000 were 12%.
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to request the
City Council to file the necessary documents to remove the Declaration filed by Rottlund to
be replaced with a revised Declaration on the property to enhance the long term
affordability of the home.
Vote. 3 Ayes. Motion adopted unanimously.
HRA Specialist Rebecca Stoen reported that there have been 15 applicants for purchase of the
home. She conducted an open house on February 8. The top candidate is a TRAILS participant
through St. Louis Park. There are two potential back ups also.
Commissioner Bildsoe asked what the price is for the home. Ms. Stoen replied the sale price is
125,000. Ms. Stoen said that the top candidates are pre-qualified and ready to purchase.
8 HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY
PROGRAMS
Supervisor Goldsmith gave an overview of the staff report. He stated that the Hennepin County
HRA is providing programs that are complementary to the programs the Plymouth HRA
operates. The Stone Creek Village development was submitted to the Hennepin County HRA for
funding last year. Stone Creek was ranked second in Hennepin County, but was unable to get
MHFA financing. That prevented it from getting funding from the Hennepin County Housing
Incentive Fund. This is an indication of how the County programs support Plymouth objectives.
Commissioner Ludovissie asked if the HRA can give notice at any time. Supervisor Goldsmith
said if we don’t want Hennepin County operating a program in Plymouth, we can give them
notification to discontinue it at any time.
No action was taken by the Board, effectively allowing the Hennepin County HRA to operate the
specified programs in the City of Plymouth.
9 PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORTS
Supervisor Goldsmith advised that the project is fully occupied. He said there is no financial
statement yet because Walker is working on the end of year financial statement.
Supervisor Goldsmith stated there is a major budget issue with Walker which was identified in
the November financial statement reviewed at the January HRA meeting. The Administrative
Benefits item is $52,000 over budget. HRA Supervisor Goldsmith discovered from Walker that
a number of years ago, Walker went self-insured on medical coverage for their employees. They
did not advise us they were going self-insured and did not factor it into Town Square budgets.
When several incidents of high medical expenses among Towne Square employees occurred,
Walker charged those expenses back to the project. However, Supervisor Goldsmith said we are
Plymouth Housing and Redevelopment Authority
February 15, 2001
Page 8
fairly well covered because under our contract with Walker they cannot overrun a budget line
without the permission of the HRA. If they do so, the HRA takes back a credit against the
management fee that is paid to Walker. However, our management fees are only $40,000 a year.
Supervisor Goldsmith stated Walker collects the revenues for Towne Square. Any excess funds
by Walker are remitted to the City and invested on behalf of Towne Square. Walker has
requested excess funds from the City to apply against the expenditures but the City Attorney in
an initial evaluation has advised that HRA shouldn't have liability for the expense. As a result he
has advised the City not to release the excess funds to Walker.
Walker has requested that the HRA negotiate the budget overrun. They feel this is coverage for
project employees at Plymouth Towne Square even though they may have the legal liability. If
we can’t negotiate, Walker has indicated they may not renew their contract at the end of the year.
Supervisor Goldsmith has requested that Walker submit a formal written report on the situation
to the HRA. Director Hurlburt indicated concern that Walker's decision to become self-insured
had not been discussed with us. Supervisor Goldsmith said that our contract with Walker treats
Plymouth Towne Square differently than their other developments. Walker normally treats site
employees as employees of the development or the owner. Our contract requires them to
consider the Towne Square employees as Walker employees.
Commissioner Ludovissie questioned if this issue was brought to Staff’s attention prior to getting
the financial report, and said he is troubled by the fiduciary relationship. Supervisor Goldsmith
indicated that we were not advised of the situation until after we had received the report.
Supervisor Goldsmith gave an update on the roof leakage problem. He reported that as a result
of the last ice storm huge ice dams built up and the leakage resumed. Walker has proposed
installing heat cables in the gutters to solve this problem. Additional insulation and ventilation
may also be necessary. Walker is working diligently on solving the problem.
10 OTHER BUSINESS
None.
11 ADJOURNMENT
MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe to adjourn the
meeting.
Meeting adjourned at 8:45 p.m.