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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 10-18-2001MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY October 18, 2001 PRESENT: Chair Susan Henderson, Commissioners Sandy Hewitt, Steve Ludovissie, and Leon Michlitsch. ABSENT: HRA Commissioner Tim Bildsoe, HRA Specialist Melissa Carnicelli and Planning Liaison Mike Stulberg STAFF PRESENT: Executive Director Anne Hurlburt, Housing Manager Jim Barnes, and Office Support Representative Patty Schaffer OTHERS PRESENT: None 1. CALL TO ORDER A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair Henderson on October 18, 2001, at 6:58 p.m. 2. APPROVAL OF MINUTES MOTION by Commissioner Michlitsch, seconded by Commissioner Hewitt, to recommend approval of the September 20, 2001, meeting minutes. Vote. 4 Ayes. Minutes approved unanimously. 3. CONSENT AGENDA MOTION was made by Commissioner Hewitt, seconded by Commissioner Ludovissie, to approve the Consent Agenda that included the following items: A. Plymouth Towne Square. Accept Monthly Housing Report B. Metropolitan Council. Accept report on Metropolitan Council 2001 Housing Performance Score. Vote. 4 Ayes. Motion adopted unanimously. 4A. UPDATE ON PLYMOUTH TOWNE SQUARE MANAGEMENT CONTRACT AND 2002 BUDGET. (Verbal) Executive Director Hurlburt explained staff is working with Grace Management, Inc. to draft a contract for their management of Plymouth Towne Square. Commissioner Ludovissie said it was his understanding that Grace Management Company wanted to be named insured on the property. Executive Director Hurlburt stated that the Plymouth Housing and Redevelopment Authority October 18, 2001 Page 2 property is insured by the League of Minnesota Cities and she did not believe we could add Grace to this policy. Director Hurlburt also commented that the language in the contract needs to be reviewed and the type of reports the City will need is yet to be reviewed. Housing Manager Barnes stated he would like to see a format showing how the finance staff actually handles the money; who authorizes expenditures and generally the nuts and bolts of how all of this is going to work. He asked for input from the board as to what kind of reports they would like to see on a monthly basis and what changes they would like to see. Housing Manager Barnes also stated that Walker Management Company should have been submitting reports and/or spreadsheets giving a narrative of expenses and that we should not have to dig for information. Commissioner Hewitt stated this should be standard practice. Director Hurlburt said she would like to see YTD compared to last year at the same time. Commissioner Ludovissie expressed concern regarding maintenance that has not been taken care of. He questioned why 4 units were being held in reserve and he felt there should be no problem in keeping these units occupied. Housing Manager Barnes commented on the roof problems, which are the cause of maintenance issue in several units and stated Walker Management Company assured him that a contractor would be hired so this issue can get resolved. He still had concerns as to when this would be resolved and how it was going to be taken care of. Commissioner Hewitt stated she would like to see an overview report and not a report of the day to day activities. Commissioner Ludovissie stated he liked the newsletter. Grace Management had asked if the newsletter was to be continued after they took over and Director Hurlburt responded "yes". Housing Manager Barnes stated he would like to see a narrative explaining how things are going financially and the progress of maintenance items that are of concern to the residents. Housing Manager Barnes gave an overview of the meeting he had last week with Grace Management and the on-site staff He indicated that the meeting was the first time Grace had met the on-site staff and they basically wanted to get to know the staff and what their respective responsibilities are. Discussion followed regarding Plymouth Towne Square personnel issues. Commissioner Ludovissie stated that this is not a typical project as it is government owned and it should not be the responsibility of the Board to oversee the progress of the day to day activities, however he felt the Board should have the ability to have input if things are not going well. Director Hurlburt cautioned that the City should not micro -manage Grace Management, Inc. She said that a positive working relationship was being established with Grace Management. 411. UPDATE ON PROPOSED STONE CREEK VILLAGE DEVELOPMENT. Housing Manager Barnes gave an overview of the proposed Stone Creek Village Development, which Dominium Development began in the fall of 2000 and was originally going to have 140 units, 30 of which would be affordable. He reminded the HRA that they had already approved Plymouth Housing and Redevelopment Authority October 18, 2001 Page 3 366,000 in funding to cover a portion of the "gap" in this project as well as contributing three Section 8 Project Based Vouchers. Barnes continued by informing the Board of the funding secured by the developer to date including funds from Hennepin County and the MHFA. He also indicated that the developer has submitted a TIF application to the City. Housing Manager Barnes informed the Board that after the meeting packet had been sent to the Commissioners, Dominium revised their plan once again to cover higher than expected construction costs. Dominium increased the number of units from 116 to 130 and also increased the number of affordable units from 27 to 34 Executive Director Hurlburt indicated that this project presents some challenges, regarding developing this land due to poor soils and wetlands on three sides. She indicated that by providing TIF we were simply leveling the playing field for this site to be developed. Director Hurlburt pointed out that Dominium did revise the design of the building taking into account wetland issues and the poor soil conditions and all of these changes are in accordance with City regulations. She stated that the form of tax increment financing would be pay as you go and 34 units of affordable housing will be provided. The term of the district would most likely be between 10-12 years, which would generate approximately 1.2 million in increment. The City will move forward in reviewing the TIF application from Dominium. 4C. PROPOSAL FOR TAX FORFEITED PROPERTY ON SOUTH SHORE DRIVE. Verbal). Housing Manager Barnes stated that staff had been approached by a developer (Managed Assets) who was interested in developing a piece of tax forfeited land on South Shore Drive. He indicated that this piece of land is not controlled by the county, rather the state has control due to the wetlands that are on the site. He also stated that a bill would have to be by the State Legislature in order for this piece of property to be sold. The developer introduced a bill last session but it was not addressed because the state and county would rather sell the property to a local unit of government such as an HRA. Their reason for this is because they already have a process in place, where as they have never transferred a property such as this to a private citizen. Barnes continued by stating everyone is waiting to see if the HRA has any interest in pursuing this project. If they do not, the bill will probably not go through in the next session. Director Hurlburt reported that Kathryn Loeb has spent one year on researching this project and she would like to get HRA input to see if the City of Plymouth is interested in this project. Director Hurlburt expressed her concern that this project might dilute the City's ability to help with other on going projects such as Stone Creek Village. Commissioner Ludovissie stated he was concerned about the soils in that area, and given the close proximity to the Stone Creek Village project this might require higher subsidy levels to correct the soils. Commissioner Hewitt expressed concern for the amount of low-income housing that already exists in this concentrated area. The other Commissioners agreed that the perception of a high concentration of affordable housing in one area could make it difficult for this development to proceed and it could also hinder existing efforts to bring more affordable housing to the area. It was her opinion that this development is too small to expend time and energy on. Plymouth Housing and Redevelopment Authority October 18, 2001 Page 4 Commissioner Hewitt commented that the City has already cast our line for the Stone Creek Village Development and efforts should be focused on finishing that project. It was the consensus of the Board that the development of the tax forfeited property located on South Shore Drive was not feasible at this time and that the HRA should focus its energy on completing other projects currently in the pipe -line. 5. ADJOURNMENT Meeting adjourned at 8:24 p.m.