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
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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
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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.