HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 04-26-2012APPROVED MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
April 26, 2012
PRESENT: Chairman Jeff Kulaszewicz, Commissioners Paul Caryotakis, Carl Runck and Jim
Willis
ABSENT: Commissioner Bob Stein
STAFF PRESENT: Housing Program Manager Jim Barnes and Office Support Representative
Janice Bergstrom
OTHERS PRESENT: Paul Tucci, Grace Management Representative Jody Boedigheimer
1. CALL TO ORDER
Chairman Kulaszewicz called the Plymouth Housing and Redevelopment Authority meeting to
order at 7:00 p.m.
2. CONSENT AGENDA
A. Approve HRA Meeting Minutes from March 22 and April 10, 2012.
Commissioner Runck changed verbiage in the March 22, 2012 minutes on page 4, paragraphs 5
and 6, to read as follows:
Paragraph 5: "Commissioner Runck stated that making an office use work is pretty tough
unless you have an anchor tenant lined up."
Paragraph 6: "Commissioner Runck said that with the lakeside park, that would seem to
be logical."
B. Plymouth Towne Square. Accept Monthly Housing Report for March, 2012.
C. Vicksburg Crossing. Accept Monthly Housing/Marketing Report for March, 2012.
MOTION by Commissioner Willis seconded by Commissioner Caryotakis, to approve the
consent agenda with amendments. Vote. 4 Ayes. MOTION approved.
3. OLD BUSINESS
A. Oppidan Development. Review and approve the development agreement with Oppidan
for TIF District 1-3 for redevelopment of the Plymouth Shopping Center located on State
Highway 55 just west of County Road 73.
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Housing Program Manager Barnes gave an overview of the staff report. Housing Program
Manager Barnes noted the interest rate is now 6%, which is one-half percent less than August,
2011 assumption. He reviewed the two issues which have now been resolved satisfactorily
between Shelter Corporation and the HRA. Housing Program Manager Barnes said the language
in the development agreement is now specific that Oppidan will be responsible for the public
improvements. Housing Program Manager Barnes said language in the Declaration of
Covenants was changed to say that any entity at this site must either pay taxes or enter into an
agreement with the City for payment in lieu of taxes in an amount sufficient to meet the HRH's
obligations at a minimum.
Commissioner Willis asked the proposed date of the payment schedule.
Housing Program Manager Barnes responded the first payment would be December 31, 2012
provided improvements have been verified as completed.
Commissioner Willis asked when the interest begins to accrue.
Housing Program Manager Barnes said interest on the entire note will begin to accrue on
December 31, 2012, and any interest accrued in the first couple years will be added on to the end
of the note.
Commissioner Willis asked who would hold this note.
Housing Program Manager Barnes said the note will be issued to Oppidan, or their LLC which is
KTJ 198 who will assign it to Minnwest Bank who will hold note.
Commissioner Willis asked how many people are involved with the TIF note.
Housing Program Manager Housing Program Manager Barnes introduced Paul Tucci,
representing Oppidan Development. Mr. Tucci said there are two parties involved — Oppidan,
Inc. and the owner of Oppidan, Inc.
Commissioner Willis asked if either of those parties ever been subject to bankruptcy
proceedings.
Mr. Tucci said not in their existing format.
Commissioner Willis said the City is not at risk in respect to its credit, but the City's name is on
this. He said it would create a lot of problems for the community if any part of this project goes
south" because one of the three developers does not develop it. He asked Housing Program
Manager Barnes if he is comfortable that everything has been covered.
Housing Program Manager Barnes stated he is comfortable with the tax increment that if
something happens and a portion of this development does not occur, the City would be able to
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capture any of the tax increment and complete the public improvements including the demolition
of the building and have the site ready for a viable project. Housing Program Manager Barnes
concluded that after discussions with the City Attorney, financial advisors and Executive HRA
Director Steve Juetten, the City is protected and we are comfortable going forward.
Commissioner Willis asked if the developer is late in any aspect of the project, that would delay
the increment which in turn means the interest on the note will increase at 6%.
Housing Program Manager Barnes clarified that if timelines were not met they would be in
default and the interest stops accruing.
Commissioner Willis asked if McDonald's has signed a purchase agreement.
Mr. Tucci said they received the final version today but neither Davis' nor McDonald's
agreements are executed yet. He said Shelter Corporation has executed documents. Mr. Tucci
said Davis expects to be in the ground by August or September to accommodate their anchor
tenant. Mr. Tucci concurred with Housing Program Manager Barnes' statement regarding their
obligations and said their intention is to build the road in two phases. He said the first phase
would be done by November, 2012. Mr. Tucci said 2015 is the outside date; they plan to have
the second phase completed by 2013.
Commissioner Willis asked if the utilities will go through the area being surcharged.
Mr. Tucci stated they would not.
Chairman Kulaszewicz asked if the contractual date is 2015.
Mr. Tucci said the contract with the end users is 2015. He said from the tax increment
standpoint there are minimum values that will commence whether we build or not. Mr. Tucci
explained that everyone is aware that if you buy the lot, you take your share of assessments on
interim value and full final value, and you are taxed on the full value in two years.
Commissioner Willis asked if the City Assessor has signed off on that. Housing Program
Manager Barnes answered affirmatively.
Chairman Kulaszewicz said these improvements are necessary anyway, whether they build or
not.
Housing Manager Barnes said Community Development staff concurs that removing the
building makes it a more marketable site. He said putting the new road on the north side of the
site makes the most sense because of wetlands and the amount of soil correction needed on the
south side would make it too expensive.
Commissioner Willis concurred; he said the medical lot will have the most soil issues.
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Mr. Tucci agreed and said $750,000 will be used for soil corrections. He said most of the soil is
piling on the building site, and some top soil would be used for berming on the site. Mr. Tucci
said there will be a floating parking lot.
Chairman Kulaszewicz asked for clarification of the two changes in the documents.
Housing Program Manager Barnes said revisions include replacing the term "Master
Developer/Developer" with "Developer", which is Oppidan. Housing Program Manager Barnes
said the Declaration of Restricted Covenants where amended to remove the list of types of
corporations or entities that would not be able to own one of the parcels.
Commissioner Willis asked if there is any loophole on the issue of the covenant and its legality.
Housing Manager Barnes said the City's bond attorney was comfortable with the legality
because the Declaration of Covenants is a recordable document that runs with the property. He
said the attorney was unable to find any other case law findings that this document would not be
supported. Housing Program Manager Barnes said the attorney reviewed this with the County
who also felt this would be supported.
Commissioner Willis said if there was a litigation on this, the City would be party to it - not the
County.
MOTION by Commissioner Willis, seconded by Commissioner Caryotakis, to approve the
development agreement with Oppidan for TIF District 1-3 for redevelopment of the Plymouth
Shopping Center located on State Highway 55 just west of County Road 73. Vote. 4 Ayes.
MOTION approved.
Chairman Kulaszewicz introduced Grace Management Representative Jody Boedigheimer, who
gave an overview of activity at Plymouth Towne Square and Vicksburg Crossing. Grace
Management Representative Bodigheimer said Officer Angela Haseman visited Plymouth
Towne Square and gave a refresher course on security issues and awareness of scams that target
seniors. She said it has been quiet at both senior buildings, and they are at full capacity and
turning apartments quickly.
Commissioner Caryotakis asked about the market and if rents are strengthening a bit.
Grace Management Representative Boedigheimer said she did not feel we are at the bottom end
of the market in terms of our rates. She said they rarely have vacancies and the past 16-17
months have been a positive experience.
Commissioner Runck asked how many tenants have early onset Alzheimer's or dementia. He
said people who can be vulnerable to scammers tend to be in that group. Commissioner Runck
said they tend to live independently longer than they should, on average.
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Grace Management Representative Bodigheimer said they see other issues such as a resident not
being able to take care of themselves with cooking or bathing become too difficult. She said in
both buildings they have 6-8 residents who receive some personal care support. Grace
Management Representative Bodigheimer said once a year staff may need to talk with family
members regarding a better suited environment.
4. ADJOURNMENT
MOTION by Chairman Kulaszewicz, without objection, to adjourn the meeting at 7:26 p.m.
MOTION approved.