HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 06-19-2003MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
June 19, 2003
PRESENT: Commissioners Susan Henderson, Steve Ludovissie, Leon Michlitsch, and Tim
Bildsoe
ABSENT: Commissioner Jenny Hibbard
STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes,
Office Support Representative Barb Peterson
OTHERS PRESENT: Grace Management Representative Jody Boedigheimer
1. CALL TO ORDER
Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order
June 19, 2003 at 7:03 p.m.
2. APPROVAL OF MINUTES
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, approving the
May 15, 2003 minutes.
Vote. 4 Ayes. Motion approved unanimously.
3. CONSENT AGENDA
A. Plymouth Towne Square — Accept monthly housing reports.
B. T.R.A.I.L.S. Approve the T.R.A.I.L.S. Family Self -Sufficiency Program budget and
extension of the Program Agreement.
MOTION by Commissioner Ludovissie, seconded by Commissioner Michlitsch, approving the
Consent Agenda items.
Vote. 4 Ayes. Motion approved unanimously.
4. NEW BUSINESS
A. Plymouth Towne Square. Solicitation Policy
Housing Manager Barnes gave a brief summary of the discussion regarding the Solicitation
Policy held at the May, 2003 HRA Board meeting at which time the Board requested staff to
draft a policy on solicitations and posting of information.
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June 19, 2003
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Housing Manager Barnes stated that the City Attorney has reviewed the document in order to
eliminate any issues that may occur in the future.
Chair Henderson asked Grace Management Representative Boedigheimer if she approved of the
policy and she said she felt it was well written.
MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie, to adopt the
policy on solicitations and information posting for Plymouth Towne Square.
Vote. 4 Ayes. Motion approved unanimously.
B. Strategic Plan Item 1C — Increase First Time Homebuyer Resources
Housing Manager Barnes stated that as part of the 2003 HRA Strategic Plan, the HRA was
directed to investigate additional financing sources for the First Time Homebuyer Program. He
said there are not a lot of resources available other than the Minnesota Housing Finance Agency
MHFA). He explained that MHFA offers various first time homebuyer programs.
Housing Manager Barnes explained the difference between the various programs. The
Minnesota Mortgage Program (MMP) provides mortgages with below market interest rates.
Currently they offer 4.75% with 0 points for a 30 year mortgage. The maximum home price
limit is $204,183.00. He explained that these funds are used last as they are typically not as
competitive as the other programs offered through MHFA.
Housing Manager Barnes said that the Minnesota Cities Participation Program (MOPP) currently
has the same interest rate as the MMP Program, but has different purchase price limits for new
and existing homes. Right now we partner with Suburban Hennepin County they administer this
program. He said the City of Plymouth did not have any homebuyers who accessed this funding
in 2002.
Housing Manager Barnes explained the Community Activity Set -Aside Program (CASA). He
said CASA has been used in partnership with U.S. Bank, with the majority of funds being used at
the Reserve Development. He said the interest rate is currently at 4.63% with 0 points for a 30
year mortgage and the maximum home purchase price is $204,183.00 for an existing home and
228,059.00 for new construction.
Housing Manager Barnes said another program is the Homeownership Assistance Fund (HAF).
This program is similar to a second mortgage and is only available to first time homebuyers who
receive funding through MMP, MCPP or CASA. The recipients of a CASA first mortgage
qualify for an additional $10,000.00 equity contribution under the HAF Program.
Housing Manager Barnes said that based on these programs we should look at opportunities to
apply for the CASA program.
Chair Henderson asked if the HRA should be more active in marketing these programs. Housing
Manager Barnes stated that we could put information on the City web page, in the Plymouth
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June 19, 2003
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Newsletter. He said staff does not feel that administering the MCPP or MMP would be
beneficial at this time because it is being done by the County, but did feel that utilizing the
CASA Program would be beneficial. Chair Henderson asked if these funds are used for
individual buyers or for larger projects. Housing Manager Barnes said we would target larger
projects because of the program regulations.
The HRA Board authorized staff to pursue applying to the Minnesota Housing Finance Agency
for their Community Activity Set -Aside (CASA) Program as future targeted community
initiatives are identified.
C. Strategic Plan Update and Progress Report
Housing Manager Barnes provided a summary of activities that staff has undertaken through
May of 2003 towards fulfilling the HRA's Strategic Plan. He said that a total of 8 first time
homebuyers have been assisted. This number is higher than projected due to the large amount of
program income received due to loans being paid off early.
Housing Manager Barnes said that the HRA Board adopted the revised guidelines to the First
Time Homebuyer program in February. He stated that staff has reviewed various programs
offered by the Minnesota Housing Finance Agency and are recommending that the HRA apply
for funds from MHFA for its Community Activity Set -Aside first mortgage program when an
opportunity arises.
Housing Manager Barnes stated that the Rehab program has completed work on four homes and
has an additional six homes in various stages. He also said that the Board adopted revised
guidelines to the Rehab program in February. Discussion occurred regarding the Center for
Energy and Environment (CEE) and Housing Manager Barnes stated that staff is in discussions
with this organization to administer the MHFA Fix -up fund in Plymouth.
Discussion took place regarding the new Section 8 legislation as proposed by the federal
government, to change the program to block grants to the states. Housing Manager Barnes said
the program is required to be a Section 8 rental assistance program as it currently is until 2009.
Director Hurlburt said that HUD seems to be the only organization interested in changing the
program and it appears that it may not pass.
Director Hurlburt gave an update regarding an announcement by the Federal Government that
they were going to take applications to reallocate approximately 1,800 vouchers that were not
used across the country. Staff could have applied for the additional vouchers but decided not to
submit an application because the main criteria was the poverty level as determined by the latest
census. As incomes in Plymouth are higher than other areas the chance to receive more vouchers
was very low.
Housing Manager Barnes said that staff has not yet begun to evaluate City controlled fees.
Commissioner Bildsoe asked what fees would be involved in this process. Director Hurlburt
replied the fees would be for such things as building permits, utility connection fees, or
application fees. Commissioner Bildsoe asked if this is being looked at in relation to the budget
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June 19, 2003
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coming up for the overall City. Director Hurlburt said their approach is going to be what fees are
being charged now that impact the affordability of housing and how we might find another way
of paying for those fees.
Commissioner Bildsoe suggested that it would be helpful if the Board knew the number of
individuals that are affected by the strategic plan item identified, such as the Rehab program.
This would give the Board an idea of how many people the program impacts and if it is
worthwhile to pursue the program.
Housing Manager Barnes stated that staff has been actively looking at potential sites for mixed
use projects in the City Center area. He said there are three vacant sites and one redevelopment
site which have been identified in the City Center area. He said that staff did not feel the Streeter
site would be suitable for housing as it is small, between two banks and close to Hwy. 55. The
Carlson site would probably be too expensive and Carlson already has an approved project for
this site. The site owned by John Day would be a viable site but may be too expensive also. One
option for that site would be to have commercial on the lower level and housing on top but staff
determined that would be difficult to find a developer for such a project.
Commissioner Ludovissie asked why we are focusing on the City Center area that is so very
expensive. He suggested expanding our search outside that area. Housing Manager Barnes
stated that we focused on this area because it would be a good location for another senior
building. Staff intends on looking at other areas of the City.
Staff determined that the site owned by Comcast Cable would not be suitable for redevelopment.
Housing Manager Barnes stated that four or five years ago they may have been interested in
selling the site but are not at this time. He said they might be interested in subdividing the lot.
Commissioner Bildsoe suggested Comcast might possibly be interested in donating a portion to
the City. Director Hurlburt said that building any type of housing around the existing structure
would be very challenging.
Director Hurlburt said that staff has been holding discussions with CSM Corporation regarding
the possible redevelopment of the vacant Dana Spicer building located on the Southwest corner
of Vicksburg and 55. She said the building is in poor condition and would involve a lot of
reconstruction. She said there is a considerable amount of open land surrounding the building.
The project proposed by CSM would involve a significant change in the City's Comprehensive
Plan as the proposed redevelopment would be commercial and the site is currently planned
industrial. Director Hurlburt said both Lowes and Kohl's are interested in retail space at that
location. She said staff has looked at that site for housing but it turned out to be too expensive.
A traffic study has been done and found that the roads can handle retail traffic with some
improvements. CSM has decided to proceed with the application for the project but it will not
include any housing. However, they have indicated they might be willing to contribute some
money towards housing to the City.
Director Hurlburt stated that there is another piece of property in the City which could have
potential for housing. This parcel is located at the corner of Northwest Boulevard and Schmidt
Lake Road. The current owners of the larger section of the property are selling and do have a
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June 19, 2003
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proposal at this time. She said there is an adjacent strip of land which is owned by the City.
CommonBond and Interfaith Outreach would be interested in working with the HRA to develop
this site for family housing. Housing Manager Barnes said PRISM could also be brought into
the mix as this site is in their service area. Discussion occurred regarding the type of housing
which could be built on the site. It is now being used by the City as a dumping spot for dirt
which would need to be relocated elsewhere. Chair Henderson inquired as to the cost of the
land. Director Hurlburt replied that an appraisal would need to be done. Housing Manager
Barnes said staff would meet with CommonBond, Interfaith Outreach and possibly PRISM.
Chair Henderson asked what role the HRA would play in the development of this parcel.
Housing Manager Barnes said we would most likely look at aquiring the land from the City.
This would provide the HRA leverage to create affordable housing on this piece of land even if a
different developer is used.
MOTION by Chair Henderson, seconded by Commissioner Michlitsch, directing staff to pursue
the purchase of the property at Northwest Boulevard and Schmidt Lake Road.
Vote. 4 Ayes. Motion approved unanimously.
4D. Plymouth Towne Square Wait List
Housing Manager Barnes said that the wait list for two bedroom units will be reopened in about
two weeks. There are currently only ten names remaining on the list.
4E. Plymouth Towne Square Capital Improvements
Housing Manager Barnes stated that Grace Management Representative Boedigheimer met with
the Center for Energy and Environment. She said they will go through the entire building and
forecast the remaining life on items such as furnace, carpeting, etc. Commissioner Ludovissie
asked what the charge is for this service. Housing Manager Barnes replied that it would be
between $2500 - $4000. Commissioner Bildsoe asked if this report will determine the cosmetic
updates also. Discussion occurred regarding the prioritization of projects to be done at Plymouth
Towne Square. Housing Manager Barnes said the Board had requested a Capital Improvement
report at the last meeting. Commissioner Ludovissie said he felt the report was necessary but
understood that some updates would be started immediately such as lighting, tables in the
activity room, moving the exercise equipment, and a speaker system for the dining room. The
Board directed staff to proceed with the above projects.
5. ADJOURNMENT
Motion by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to adjourn the
meeting. Meeting adjourned at 8:26 p.m.
HRA/Minutes/061903