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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 11-18-2010APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY November 18, 2010 PRESENT: Chairman Jeff Kulaszewicz, Commissioners Steve Ludovissie, David Miller, Paul Caryotakis, and Bob Stein ABSENT: None. STAFF PRESENT: Housing Program Manager Jim Barnes and Office Support Representative Janice Bergstrom OTHER: Sara Paquette, Executive Director — Vicksburg Crossing 1. CALL TO ORDER Chairman Kulaszewicz called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 P.M. Housing Manager Barnes added Item 3.C. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from October 28, 2010 B. Plymouth Towne Square. Accept Monthly Housing Report (October, 20 10) C. Vicksburg Crossing. Accept Monthly Housing Report (October, 2010) MOTION by Commissioner Caryotakis , seconded by Chairman Ludovissie. Vote. 5 Ayes. MOTION approved unanimously. 3. NEW BUSINESS A. Vicksburg Crossing. Marketing Report Chairman Kulaszewicz introduced Executive Director Sara Paquette. Ms. Paquette reviewed the report and advised that all market rate apartments are filled, and there are a couple affordable units upcoming. Commissioner Stein asked if vacancies were filled from the waiting list. Ms. Paquette said four affordable units became available at one time and were all filled. She said walk-in people are interested in affordable units. Ms. Paquette said one person on the waiting list is interested. She added one unit is handicapped unit. Commissioner Ludovissie asked how much time is required for unit turnover. Approved Plymouth Housing and Redevelopment Authority November 18, 2010 Page 2 Ms. Paquette said one month is required for cleaning and preparation. Housing Manager Barnes asked if there was any discussion from those residents regarding rent increases. Ms. Paquette acknowledged there was a little grumbling, but added that as they have started doing lease renewals, no one has come to the office complaining. She said it helps for increases to occur in small increments. Chairman Ludovissie concurred. B. Plymouth Towne Square. Call For Sale of Refunding Bonds Chairman Kulaszewicz introduced Housing Manager Barnes who gave an overview of the staff report. Commissioner Caryotakis asked if there are any concerns about two issues outstanding at the same time. Housing Manager Barnes said crossover allows us to sell these bonds today, and make no payment for two years until the old bonds are called and paid off. He added that this would not jeopardize the triple A bond rating, so there is no concern according to our financial consultants. Commissioner Stein asked for an explanation of "crossover". Housing Manager Barnes said crossover is where two series of bonds are in existence at the same time. He said we will continue to make payments on existing bonds for two years while taking advantage of the current low rates. This results in paying off the old series at low rates, and then the new series begins. Commissioner Ludovissie noted that we are basically buying a lower rate. Housing Manager Barnes answered affirmatively and said we are not jeopardizing any call provisions within the bonds that would be cost prohibitive. Commissioner Caryotakis added that funds raised would be invested in securities designed to buy the right value at the right time. Chairman Kulaszewicz asked who would invest the money from the new issue. Housing Manager Barnes said this would be placed for public bid; Ellers would conduct public bidding for those bonds with interested investment companies. Commissioner Caryotakis asked who holds the proceeds from the bonds. Commissioner Miller said these proceeds are placed in escrow. Approved Plymouth Housing and Redevelopment Authority November 18, 2010 Page 3 Chairman Kulaszewicz asked what kind of return is calculated on the proceeds and what fee Ellers earns on this issue. Housing Manager Barnes said there is a city contract for the advisory fee which is included in the pricing cost issuance. Chairman Kulaszewicz said he was curious about their fee, as we are gaining $14,000 a year. Chairman Kulaszewicz paid complements to Housing Manager Barnes on being proactive on items like this to save money for the City whenever we can. He said this provides positive results for the citizens of Plymouth and also for the tenants to keep rent increases down. MOTION by Chairman Kulaszewicz, seconded by Commissioner Miller, to approve the Plymouth Towne Square 2010 operating budget amendment. Vote. 5 Ayes. MOTION approved. C. First Time Homebuyer Program. Accept Donation for 3325 Garland Lane N. Chairman Kulaszewicz introduced Housing Manager Barnes who gave an overview of the staff report. MOTION by Commissioner Miller, seconded by Commissioner Caryotakis, to accept the donation of $30,000 from the Walsh Family Trust Vote. 5 Ayes. MOTION approved. OTHER BUSINESS Housing Manager Barnes distributed a report for Plymouth Towne Square and Vicksburg Crossing which was prepared internally with the Finance Department. He explained this report takes a snapshot of the larger financial reports breaking it down monthly. Housing Manager Barnes said this report simplifies and analyzes the cash position of the buildings and how it tracks against the budget. Discussion followed on the age of the building and repairs required on Plymouth Towne Square which is now 20 years old. It was suggested there might be cost savings to replace the windows in bulk at this time for cost savings and economically. Chairman Kulaszewicz asked how the mechanicals are functioning at Plymouth Towne Square doing. Housing Manager Barnes reviewed water issues which resulted in premature replacement of copper, valves, condensers, boilers, etc. as there was no soft water for the first five years. He said a more rigid maintenance schedule is in place. Chairman Kulaszewicz thanked Housing Manager Barnes for the operating summary. Approved Plymouth Housing and Redevelopment Authority November 18, 2010 Page 4 Housing Manager Barnes said the City received a new TIF application for a housing project from Quest Development at the southwest quadrant of State Highway 55 and Highway 169 for a 157 - unit building. The application is for $2.8 million in TIF, plus a reduction in park dedication fees. Housing Manager Barnes said the proposal would be for 10% of the units to be affordable. 4. ADJOURNMENT MOTION by Chairman Kulaszewicz to adjourn the meeting at 7:27 p.m.