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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 Page 2 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. Plymouth Housing and Redevelopment Authority May 17, 2001 Page 3 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 Page 4 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.