HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 06-20-2002MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
June 20, 2002
PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, Tim Bildsoe, Sandy
Hewitt and Leon Michlitsch
ABSENT: None
STAFF PRESENT: Executive Director Anne Hurlburt, HRA Specialist Tracy Jones, HRA
Specialist Kristine Aritt, Office Support Representative Barb Peterson
OTHERS PRESENT: Jodi Boedigheimer, Grace Management Representative
1. CALL TO ORDER
A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chair
Henderson on June 20, 2002 at 7:05 p.m.
2. APPROVAL OF MINUTES
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, recommending
approval of the May 16, 2002 minutes.
Vote. 5 Ayes. Motion approved unanimously.
3. CONSENT AGENDA
Chair Henderson requested that the Plymouth Towne Square Monthly Report be pulled from the
consent agenda for discussion.
B. T.R.A.LL.S. Approve the T.R.A.I.L.S. Family Self -Sufficiency Program budget and
extension of the Program Agreement.
C. Approve resolution allowing the use of HRA reserves for properties containing the "right of
first refusal".
MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe, approving Consent
Agenda items 3B & 3C:
Vote. 5 Ayes. Motion adopted unanimously.
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June 20, 2002
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3A. Plymouth Towne Square Monthly Report
Chair Henderson stated that some numbers are missing from the financial report under rental
revenue and marketing and leasing. The total figure is missing under rental revenue. Grace
Management Representative Boedigheimer replied that she doesn't know why they are missing
and will look into it. She said they have recently added the interest expense line and have not
paid any interest out since Grace took over, which leaves that column blank. Director Hurlburt
said rent collections are expected to be under budget in the future. Commissioner Hewitt asked
if the change in assets is having a large impact on the tenants. Director Hurlburt said it only
affects a few tenants. Grace Management Representative Boedigheimer stated the recertification
process is working very well. She stated that they will issue a new financial report with
corrected figures.
Vote. 5 Ayes. 3A adopted unanimously.
4. NEW BUSINESS
4A. Plymouth Towne Square. Update on the opening of the waiting list for two bedroom units
and request to extend time period for acceptance of applications.
Director Hurlburt stated that we did not receive the number of requests for applications for two
bedroom units that had been anticipated. The deadline was June 19th ,
and only twelve
applications were received for two bedroom units. There are four applicants on the waiting list
that requested an application past the deadline. Staff is recommending keeping the list open for
applications. Commissioner Ludovissie suggested expanding the market area in which
advertising is done. Director Hurlburt said some marketing areas were missed, such as the
Plymouth Senior News, because of timing. Commissioner Ludovissie asked how this is
representative in terms of other two bedroom applications in the area. Director Hurlburt said
there is a lot of senior housing on the market at this time, which opens up more options for
people. Commissioner Hewitt stated that two single persons could rent the two bedroom units
and this fact should be heavily marketed. Commissioner Ludovissie inquired about taking
market rate applications. Director Hurlburt said the applications have not been compiled yet so
we do not know where their income will fall. Commissioner Ludovissie suggested we might
need to open the list to higher incomes. Commissioner Hewitt said the building is considered
low income and she feels it should stay that way. Director Hurlburt said the two bedroom units
were marketed for more than one person and age qualified, not income based.
MOTION by Commissioner Hewitt, seconded by Commissioner Ludovissie, recommending that
the Waiting List remain open at Plymouth Towne Square for two-bedroom units, until such time
that Staff feels a sufficient number of applications have been received.
Vote. 5 Ayes. Motion adopted unanimously.
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June 20, 2002
Page 3
4B. Economic Development Revolving Loan Fund Program — Revised Program
Guidelines
Director Hurlburt explained that the loan fund program was created as part of a loan application
made to the Department of Trade and Economic Development (DTED) to assist Value Rx in
relocating to Plymouth. She said we are still monitoring the payback from Value RX even
though the company no longer resides in Plymouth. The $100,000 share of the loan repayment
that the City gets to keep is in the bank and to date we have not marketed this program. Housing
Manager Barnes has looked at the program and met with local lenders and has recommended
some guidelines to market this program. The City Council had hoped to delegate the program to
the HRA, however, the DTED would not let them do so because the City was the recipient of the
grant fund. If the HRA approves these changes, it will be submitted to the City Council and then
to DETED for the final approval.
Commissioner Hewitt asked if we are trying to increase the funding. Director Hurlburt said we
don't want to allocate more funds to a program that isn't in effect yet but depending on the
success and future demands on the program, more funds might be needed in the future.
Commissioner Hewitt asked which banks we are working with. Director Hurlburt said they are
local banks but stated they are not the only ones we could work with. Chair Henderson
mentioned Associated Bank and said they worked with small business owners.
Commissioner Bildsoe asked what "first mortgage" referred to and what that meant, since all
loans would not necessarily be real estate loans. Director Hurlburt said she would find out what
first mortgage" means as referenced in the report.
Chair Henderson asked about the Community Reinvestment Act (CRA) credit. Discussion
followed on ways to market the loan fund. Chair Henderson asked who will work with the
businesses. Director Hurlburt said it would be the HRA staff and the lenders. Discussion took
place as to how we are going to administer the program. Commissioner Bildsoe asked how
DETED felt about the changes. Director Hurlburt said DETED is fine with them.
MOTION by Commissioner Bildsoe, seconded by Commissioner Hewitt, recommending that the
Plymouth City Council accept the proposed changes to the Plymouth Economic Development
Fund Guidelines after staff has reviewed the definition of "first mortgage" and made any
appropriate change to the language.
Vote. 5 Ayes. Motion adopted unanimously.
4C. SUBMISSION OF A MINNESOTA HOUSING FINANCE AGENCY
CONSOLIDATED REQUEST FOR PROPOSED APPLICATION FOR THE
HARVEST HILLS DEVELOPMENT.
HRA Specialist Jones explained that last February HRA staff submitted an application to the
Minnesota Housing Finance Agency (MHFA) Consolidated Request for Proposal (RFP) for
affordability gap assistance in the Harvest Hills development. The RFP was not recommended
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June 20, 2002
Page 4
for funding. Since that time we have received positive feedback from MHFA regarding that
application. She said staff in now interested in resubmitting the application for $75,000 while
contributing an additional $75,000 in local funds. This should assist between 8 and 9 buyers,
providing an affordability gap of approximately $20,000.00 - $30,000.00. MHFA had some
concerns with the financial sheet contained in the original application which staff will now
expand upon.
Discussion took place regarding the gun club being so close to Harvest Hills. Commissioner
Ludovissie asked how long the builder has been in business. Director Hurlburt replied they are a
national builder and have been in business for many years. The railroad tracks were also a
concern and discussed. Commissioner Ludovissie asked if the gun club is to be buffered.
Director Hurlburt replied there is not a plan in place to do so. Commissioner Hewitt questioned
the marketability of the units because of the gun club and the railroad tracks.
Chair Henderson asked if the City match would come out of the first time homebuyer fund.
HRA Specialist Jones replied that the money would be moved from the affordable housing
development fund to the first time homebuyer fund. Director Hurlburt stated that if we can
leverage our money to get funding from other sources it will increase the total amount available
in Plymouth. Commissioner Ludovissie stated that our resources are very limited in seeking
affordable housing and suggested proceeding with this application.
MOTION by Commissioner Michlitsch, seconded by Commissioner Bildsoe, recommending the
submission of an application to the Minnesota Housing Finance Agency Consolidated Request
for Proposal for gap assistance at the "Harvest Hills" development.
Vote. 5 Ayes. Motion adopted unanimously.
4D. UPDATE ON CITY COUNCIL MEETING REGARDING HOUSING FORUM
Director Hurlburt stated that the City Council held a study session on June 4, 2002, discussing
the outcome of the Housing Forum, which was held on March 19, 2002. She said the purpose of
the study session was to identify areas they would like the HRA Staff to begin working on.
Director Hurlburt stated that one of the areas is the education of the public regarding housing
issues. She said we will be publishing various articles in the Plymouth News.
Commissioner Hewitt asked if the HRA has done lobbying efforts. Director Hurlburt said letters
have previously been sent lobbying for specific programs. Commissioner Hewitt suggested
sending letters periodically, especially this fall when new offices are being filled.
4E. FIRST TIME HOMEBUYER APPLICATION FOR RUTH ZHANAY
Director Hurlburt explained this is an unusual situation in that the person applying for the loan is
income qualified for the program, but is qualified to purchase her townhouse without our
assistance. Our philosophy is that the program is to be used for gap financing for people who
can't qualify on their own. Chair Henderson asked why this has come to the HRA. Director
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June 20, 2002
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Hurlburt said that staff has turned down her loan request and she asked to appeal to the Board.
Commissioner Ludovissie said that we have established certain rules and it is clear that she does
not qualify and we need to stick to those rules. Staff will notify her by letter.
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, that the Plymouth
and Redevelopment Authority Board of Commissioners agree with the decision made by staff to
deny Ruth Zhanay funding through the First Time Homebuyer program.
Vote. 5 Ayes. Motion adopted unanimously.
5. ADJOURNMENT
MOTION by Commissioner Michlitsch, seconded by Commissioner Hewitt, to adjourn at 8:05.
Vote. 5 Ayes. Motion adopted unanimously.
HRA/Minutes/6/20/02