HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 05-17-2001MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
May 17, 2001
PRESENT: HRA Chair Susan Henderson, Commissioners Tim Bildsoe, Leon Michlitsch, and
Steve Ludovissie
ABSENT: Commissioner Sandy Hewitt and Planning Liaison Kapila Bobra
STAFF PRESENT: Executive Director Anne Hurlburt, HRA Supervisor Goldsmith, HRA
Specialist Melissa Carnicelli, Office Support Representative Barb Peterson, and City Assessor
Nancy Bye
OTHERS PRESENT: Minnesota Housing Resources, Inc. Representatives Michael Czarnik &
Dave Engstrom
1. CALL TO ORDER
A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair
Susan Henderson on May 17, 2001, at 7:02 p.m.
2. APPROVAL OF MINUTES
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to recommend
approval of the April 19, 2001, meeting minutes.
3. PRESENTATION BY CITY ASSESSOR ON RESIDENTIAL PROPERTY TRENDS
IN PLYMOUTH
HRA Supervisor Goldsmith introduced the City Assessor, Nancy Bye, who explained the
findings of the 2001 Board of Review. Assessor Bye explained how the process works and
pointed out that the majority of properties in the City of Plymouth experienced substantial
increases in their estimated market value. Assessor Bye stated that all property is required to be
reassessed each year and the 2001 Assessment reflects an increase of 14% overall valuation over
the 2000 Assessment. Assessor Bye explained limited market value and that it affects
approximately 18,175 parcels in the City. These parcels have a limit on how much the assessor’s
estimate of market value is permitted to increase from one year to the next. Assessor Bye
explained the distribution of estimated market value by property type and that residential
comprises 70%, apartments 6%, and commercial/industrial 24%. She passed out pictures of
recent home sales with the selling prices in the affordable price range. Discussion took place
regarding the lack of affordable homes in Plymouth.
4. PRESENTATION ON DEVELOPMENT OF METROPOLITAN HOUSING
OPPORTUNITIES PROGRAM UNITS
Michael Czarnik & Dave Engstrom from Minnesota Housing Resources, Inc. (MHR) presented
information to the Board about the work their firm is doing to acquire Metropolitan Housing
Opportunities Program (MHOP) units as part of the Hollman vs. Cisneros lawsuit. They
explained that MHR has been contracted by the Minneapolis Public Housing Authority to
Plymouth Housing and Redevelopment Authority
May 17, 2001
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acquire the remaining 300 units in communities that have their own HRA, such as Plymouth, for
use as public housing to settle the lawsuit. These units must be located in non-impacted, low
poverty and outside of minority-concentrated areas in the City of Minneapolis and the
surrounding communities. They are requesting that the Board consider supporting this effort by
committing to having twenty-six units in the City of Plymouth. Six MHOP units have been
operating since 1999 at Shenandoah Woods Apartments. MHR would acquire the additional
units with funds provided through MPHA. The Public Housing units could be owned and
operated by the City/HRA, through Metropolitan Council HRA, through a private owner, or
through a non-profit agency. The Plymouth HRA would be required to either hold the Annual
Contributions Contract (ACC) for the units or contract with Metro HRA to hold the ACC. In
acquiring these units, MHR is ideally looking for easily maintained units (such as townhome
units) built after 1978. In multi-unit properties (apartments or townhouses), no more than 10%
of the units would be acquired for MHOP. Residents for the units would be selected both from
MPHA’s waiting list (70% of selections) and Plymouth HRA’s Section 8 waiting list (30% of
selections). After 30 years, all selections would be made from Plymouth HRA’s waiting list.
4. APPLICATION FOR THE MHFA CASA MORTGAGE PROGRAM FOR THE
RESERVE DEVELOPMENT
HRA Specialist Carnicelli stated that she is asking the Board for their support in applying for the
2001 Community Activity Set-Aside Funding (CASA). Specialist Carnicelli said the funds will
be targeted toward people buying affordable townhomes in The Reserve. She said there had
been a very similar CASA program for the Village at Bassett Creek and it was very successful.
MOTION by Commissioner Bildsoe , seconded by Commissioner Michlitsch recommending that
the HRA Board agree to serve as a community partner and sponsor of an application to the
Minnesota Housing Finance Agency (MHFA) for funding under the Community Activity Set
Aside Fund program for The Reserve as outlined in this report.
Vote. 4 Ayes. Motion adopted unanimously.
6. DRAFTS OF CITY HOUSING AND INDUSTRIAL REVENUE BOND POLICIES
HRA Supervisor Goldsmith explained that the City’s policy for the issuance of revenue bonds
has become obsolete. Multi-family Housing Revenue Bonds are sold by the City on behalf of a
private developer. These are tax exempt bonds which enable the developer to receive a lower tax
rate. Supervisor Goldsmith explained that the draft policy will include customized provisions to
implement the City’s housing strategies. One of the more important strategies is that the
proposal should include a minimum of 10% of the total units be affordable for households at or
below 50% of the area median income. HRA Supervisor Goldsmith explained the various
provisions that would be included in the policy. For projects including the rehabilitation of
existing structures, not less than 15% of the acquisition cost is to be spent on rehabilitation
within the first two years of the project. He is recommending an increase in the non -refundable
application fee from $1,000 to $2,000, with the condition that the City Council have the option
of establishing on-going annual fees or payments.
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May 17, 2001
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HRA Supervisor Goldsmith explained how the new draft of the Industrial Development Revenue
IDB) Bond Policy follows the format of the draft of the Multi-family Housing Revenue Bond
Financing Policy but it includes fewer required provisions. IDB projects could be required to
make a contribution to fund housing needs. The rationale behind this policy is that when
industrial development occurs in the City, it brings workers into the City who are in need of
affordable housing.
Commissioner Ludovissie inquired about the City’s current involvement in the use of housing
revenue bonds. HRA Supervisor Goldsmith replied that we do less than one per year. At this
time we do have an application for 120 units of senior housing in Plymouth Marketplace.
Commissioner Ludovissie asked if they were operating without a policy at this time. Director
Hurlburt said that there is no policy for housing bonds and the IDB policy is obsolete. It will
formalize the working policies, which is one of the implementation strategies included in the
Comp Plan. Commissioner Bildsoe stated that he had a concern about the minimum amount of
units being 10% and the maximum could be 100%. He thought there should be a definite range.
HRA Supervisor Goldsmith responded that these units are not public housing or Section 8. They
would set a flat rent at 30% of 50% of the median income, therefore, the rent would not be a low
rent. The City Council would retain the option to vary that number.
Commissioner Bildsoe suggested that the word “higher” be removed from Number III.A,
Affordability and Occupancy Requirement, in Attachment #1.
MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie, recommending
the adoption of these Policies to the City Council.
Vote. 4 Ayes. Motion adopted unanimously.
7a. PLYMOUTH TOWNE SQUARE DRAFT RFP FOR MANAGEMENT SERVICES
HRA Supervisor Goldsmith explained that we are beginning to search for new management
services for Plymouth Towne Square. He explained the timing of the search and the criteria we
will be looking for. It does not need final approval this evening.
Commissioner Ludovissie asked if we are going to advertise. HRA Supervisor Goldsmith said
we have a significant number of firms to choose from without advertising. We are suggesting
that direct contacts be used. Commissioner Bildsoe asked why the date of June 21st was set to
terminate the Walker contract effective December 31st . Director Hurlburt said we must give six
months advance notice in order to be able to search for new management. Commissioner
Ludovissie suggested we perform a search routinely every two years or so. Commissioner
Bildsoe sees a financial risk in doing that. Director Hurlburt replied that this would be a factor
even if the HRA did not give notice because Walker also has the option to terminate the contract.
Discussion followed regarding the items on the Request for Proposal. Chair Henderson
suggested inserting the word “timely” in number 4 which will then read, “Submission of timely
monthly reports to the HRA detailing these records will be required.” Chair Henderson suggested
attaching a copy of the Plymouth Towne Square newsletter but HRA Supervisor Goldsmith
didn’t think we should so that they will submit their own ideas.
Plymouth Housing and Redevelopment Authority
May 17, 2001
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It was suggested that submission requirements should include a list of activities and services to
be provided. It was decided that the Board will determine the selection criteria at a later date.
7b. PLYMOUTH TOWNE SQUARE REPORT ON MANAGEMENT CONTRACT
Executive Director Hurlburt requested the Board to authorize payment of $5,432 to Walker
Management for reimbursement of costs for employee health benefits.
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch authorizing
payment of $5,432 to Walker Management to resolve the issue of employee benefits for
Plymouth Towne Square for the period March, 1996, through December, 2000.
Vote. 4 Ayes. Motion adopted unanimously.
7c. PLYMOUTH TOWNE SQUARE MONTHLY HOUSING REPORT
It had been pointed out at the last meeting that the year to date budget is in the negative. This is
a matter of timing of the reports for the expenditures that were budgeted.
8. OTHER BUSINESS
Commissioner Bildsoe suggested that we discuss the Metropolitan Housing Opportunities
Program Units at the next meeting.
HRA Supervisor Goldsmith presented an update on Stone Creek Village. Besides the $400,000
recommendation in HOME funds, the Met Council will be considering approval for an additonal
200,000 for that proposal. MHFA is considering funding of an additional $240,000 and the
Family Housing Fund is considering $110,000. Fourteen Metropolitan Housing Opportunity
Hollman Units would provide an additional $1,600,000 in assistance. Supervisor Goldsmith has
suggested to the developer that they submit their plans to the City as soon as possible.
Commissioner Ludovissie inquired about the design and plans. Director Hurlburt replied that it is
a challenging site and there may be neighborhood opposition.
9. ADJOURNMENT
MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe to adjourn the
meeting.
Meeting adjourned at 9:17 p.m.