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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 03-15-2001MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY March 15, 2001 PRESENT: HRA Chair Susan Henderson, Commissioners Tim Bildsoe, Leon Michlitsch, Sandy Hewitt and Steve Ludovissie, and Planning Laiaison Kapila Bobra ABSENT: None STAFF PRESENT: HRA Supervisor Ed Goldsmith, HRA Specialist Rebecca Stoen, HRA Specialist Melissa Carnicelli, and Office Support Representative Barb Peterson 1. CALL TO ORDER A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair Susan Henderson on March 15, 2001 at 7:05 p.m. 2. INTRODUCTION AND ADMINISTRATION OF OATH OF OFFICE FOR NEW COMMISSIONER SANDY HEWITT 3. RECOGNITION OF FORMER COMMISSIONER DICK ABEL 4. APPROVAL OF MINUTES MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to recommend approval of the February 15, 2001, meeting minutes. Vote. 5 Ayes. Motion adopted unanimously. 5. US BANK APPLICATION FOR COMMUNITY ACTIVITY SET-ASIDE MORTGAGE PROGRAM Supervisor Goldsmith introduced Specialist Carnicelli, who explained the Community Activity Set-Aside Funding (CASA) program. It is operated by the Minnesota Housing Finance Agency MHFA) and provides us with reserved amounts of mortgage funds to meet homeownership needs in the community. CASA funding was used at the Village of Bassett Creek Townhome development in 1999. In discussions with Community Action for Suburban Hennepin (CASH) staff learned that US Bank was interested in applying for CASA funds that could be used in Plymouth. CASH works closely with US Bank on affordable home ownership and the HRA has established an ongoing relationship with CASH. US Bank will make application for 5 loans of 120,000 each for a total of $600,000. The funds may be used for households with incomes at the CDBG maximum income limit or less, and limits the home to a maximum value of $149,485. Chair Henderson asked if these are additional funds which are available. Specialist Carnicelli replied affirmatively. Specialist Carnicelli added that it is difficult to find houses under this program but our staff, along with CASH, is working hard to find affordable housing. The Reserve, a new housing development scheduled to be built in Plymouth, will provide more affordable housing where these loans can be used. MOTION by Commissioner Michlitsch, seconded by Commissioner Hewitt, recommending that the HRA Board support US Bank’s submission of an application to the Minnesota Finance Plymouth Housing and Redevelopment Authority March 15, 2001 Page 15 Agency (MHFA) for funding under the Community Activity Set Aside program for employees in Plymouth as outlined in the report. Vote. 5 Ayes. Motion adopted unanimously. 6. UPDATE ON VILLAGE AT BASSETT CREEK TOWNHOME SALE, ADOPTION OF DECLARATION OF RESTRICTIVE COVENANTS, AND APPROVAL OF PURCHASE AGREEMENT TO SELL THE TOWNHOME Specialist Stoen stated that we have been marketing and taking applications for the Townhome at Bassett Creek. She announced that we have selected a buyer for the home. The purchaser is a teacher for Hopkins schools and is very excited about the opportunity to buy this home. We have been working with our attorney to revise the Restrictive Covenants. HRA Counsel has recommended using a maximum restriction of 30 years and the resale restrictions have been strengthened also. The closing is scheduled for March 30th. Resale restrictions are going through FHA at this time which could delay the closing. The HRA is asking the Board to let the prospective buyer lease the property if the process is delayed. The home is vacant now and it would be to our advantage to have someone living there. The home has experienced some minor leakage due to an ice dam problem and the buyer is aware of it. Commissioner Ludovissie asked whether this sale would set precedence for other sales of this type in that complex. He suggested that we may need to look at security deposits and the length of lease since it would be changing from an owner to a renter. We would then treat the prospective buyer as a renter until the deal closes. Supervisor Goldsmith pointed out that we do have a down payment deposit from her. Chair Henderson stated that we could call a special meeting if any changes are needed or the closing is delayed. [Note: There were no problems or delay with FHA approval and the house sale was closed on schedule.] MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, recommending that the HRA Board approve the purchase agreement and restrictive covenants, authorize the Chair and Executive Director to sign the purchase agreement, and authorize the Executive Director to execute all remaining documents necessary to sell the property to the selected buyer. It was also recommended that the Board authorize lease of the property to the buyer as explained, in the event the closing is delayed past March 30th. Roll Call Vote. 5 Ayes. Motion adopted unanimously. 7. NOMINATION AND ELECTION OF OFFICERS Chair Henderson suggested that since officers were elected two months ago, the election could be postponed for a few months. Supervisor Goldsmith stated that the only action required by the bylaws is that the annual meeting must be held in March of each year. The nomination and election officers can be postponed by the Board. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch to postpone the nomination and election of officers. Plymouth Housing and Redevelopment Authority March 15, 2001 Page 16 Vote. 5 Ayes. Motion adopted unanimously. 8. PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORT HRA Supervisor Goldsmith stated that Plymouth Towne Square is at full occupancy. The only problem right now is the roof issue, which has been an ongoing problem since the building was built. Commissioner Ludovissie asked for elaboration on this. Supervisor Goldsmith provided extensive background information on what has transpired to this point. The problems have been related to the intricate roof design that makes ventilating and draining the roof more difficult. The current problem relates to ice dams forming at the areas where gutters were installed to solve a drainage problem. To resolve this issue, Walker is looking into installing heat tape along the gutters. We are also considering an infrared study to determine heat loss into the attic that could be contributing to the moisture problems. Depending upon the result of the infrared study, we may increase the insulation in the attic and /or provide power ventilation in the attic. Walker’s construction manager has been spending a large amount of time at Plymouth Towne Square on these issues. Supervisor Goldsmith stated there are two apartments which have had a considerable amount of leakage. They are two bedroom units and basically the tenants have had to move all of their furniture into the center of the living room and one bedroom. Although these residents have been inconvenienced by this, they have not asked for any compensation. One tenant pays $575 in rent and has had a leakage problem on and of for the past year. We are requesting a rebate for the month of March of $300 and also for April if the problem continues. The other tenant with a rent of $679 has this problem for the first time. We are requesting a rebate of $200 per month for this tenant. Commissioner Ludovissie suggested we have them sign an agreement that this is a one time rent rebate. Supervisor Goldsmith added the ice is being removed today. Chair Henderson asked if insurance covers this. Supervisor Goldsmith stated that we have a $5000 deductible before insurance would cover damage to the building. MOTION by Commissioner Michlitsch, seconded by Commissioner Hewitt, that the Plymouth HRA authorize a rebate in March of $300 for the tenant in apt. 313 and $200 for the tenant in apt. 215 due to the inconveniences caused them by the water leakage and also similar rebates for April if the problem should continue. Vote. 5 Ayes. Motion adopted unanimously. Supervisor Goldsmith discussed health insurance benefits for the employees at Plymouth Towne Square. Walker became self insured for all of their employees and Plymouth Towne Square employees are employed by Walker. Walker has been paying the medical claims for the employees and charging them to Plymouth Towne Square. At the end of the year Walker charged Towne square with $78,430 in health care costs over the fringe benefit budget for employees with extraordinary medical costs. Supervisor Goldsmith was approached by Walker’s finance director and asked if we would share in the cost even though they realized we hadn’t been informed about it. Supervisor Goldsmith asked that Walker put the request into writing. Just before we became aware of these charges Walker had transferred excess Plymouth Towne Square funds to the City for investment. This left insufficient funds for Walker to cover the health care expenses out of Towne Square funds. The City Attorney has reviewed this situation Plymouth Housing and Redevelopment Authority March 15, 2001 Page 17 and advised that neither the HRA nor the City should provide funds to Walker to cover this expense. Walker has said that they may not renew our contract, if there isn't some sharing of this cost. Commissioner Michlitsch asked when the contract expires. The contract automatically renews on January 1st, unless either party gives a 180 day termination notice. Commissioner Bildsoe stated that this would come up when we revisit our contract with Walker. Commissioner Ludovissie said that periodically we should go out and check the market for other management companies. We have done a market study in the past. This was tabled until further information is available. 9. OTHER BUSINESS Commissioner Bildsoe asked for a listing of all HRA members including phone numbers. This information was provided. He spoke about real estate prices in the City and how fast they are going up. He is suggesting we have the assessor or a realtor come in and talk to us about the affordability of homes in Plymouth. Chair Henderson suggested bringing in Relocation firms also. Commissioner Ludovissie said we could also do multi-housing rent surveys. Supervisor Goldsmith indicated that the City's The Board of Review issues a report on property valuation and property taxes each year in April. The City Assessor could be asked to present this information to the Board is done in April by the Assessing Department. Commissioner Ludovissie would like to focus on areas in the City that are lower priced. Chair Henderson stated that at the next meeting she would like to revisit goals and objectives. Supervisor Goldsmith handed out a draft Summary Analysis of Impediments to Fair Housing For the Twin Cities Region. HUD requires every CDBG jurisdiction to undertake an Analysis of Impediments to Fair Housing every three to five years. In the recent past the cities of Plymouth and Bloomington have worked with the Hennepin County Consortium to respond to this requirement. About two years ago, all of the CDBG jurisdictions in the Twin Cities began to discuss doing one analysis for the entire region, rather than each jurisdiction doing its own.rimary purpose is to distribute home dollars, which can be used in Plymouth. The draft summary is the initial result of this process. The analysis is expected to be finalized in April. Only two other metropolitan areas in the county have done Analysis of Impediments. We save staff resources by working with the other jurisdictions in performing this work. The final document will specifically list Plymouth as a participating jurisdiction. The draft had not listed Plymouth because our participation had come through the Hennepin County Consortium that we work with on these issues. 10. ADJOURNMENT MOTION by Commissioner Michlitsch, seconded by Commissioner Hewitt to adjourn the meeting. Meeting adjourned at 9:00 p.m.