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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. Plymouth Housing and Redevelopment Authority June 19, 2003 Page 2 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 Plymouth Housing and Redevelopment Authority June 19, 2003 Page 3 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 Plymouth Housing and Redevelopment Authority June 19, 2003 Page 4 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 Plymouth Housing and Redevelopment Authority June 19, 2003 Page 5 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