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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. Plymouth Housing and Redevelopment Authority June 20, 2002 Page 2 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. Plymouth Housing and Redevelopment Authority 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 Plymouth Housing and Redevelopment Authority 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 Plymouth Housing and Redevelopment Authority June 20, 2002 Page 5 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