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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 04-15-2004MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY April 15, 2004 PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, and Tim Bildsoe ABSENT: Commissioner Jenny Hibbard STAFF PRESENT: Housing Program Manager Jim Barnes, Executive Director Anne Hurlburt, Support Services Manager Denise Hutt, and Office Support Specialist Ranelle Gifford OTHERS PRESENT: Grace Management Representative Jodi Boedigheimer 1. CALL TO ORDER Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order April 15, 2004 at 7:00 p.m. 2. CONSENT AGENDA A. Approval of the March 18, 2004 HRA Meeting Minutes. B. Plymouth Towne Square - Accept monthly housing reports. MOTION by Commissioner Bildsoe, seconded by Commissioner Ludovissie, to approve the consent agenda. Vote. 3 Ayes. MOTION approved. Housing Manager Barnes asked that the order of Items 3A and 3C be switched on the agenda. Chair Henderson concurred. 3. NEW BUSINESS C. Willow Creek Apartments North & South Housing Manager Barnes explained that the Willow Creek Apartments are owned by Ted Bigos, Bigos-Willow Creek, LLC. They have 24 project -based Section 8 units within each building and the HUD contracts are due to expire. He said Mr. Bigos has given notice that he does not intend to renew the contracts, so the HRA is working with MHFA to preserve those units. Housing Manager Barnes explained that to get Mr. Bigos to renew his contract for a minimum of five years it would require an equity contribution by the HRA and MHFA. If we are unsuccessful in getting the owner to renew, the HRA has been approved for enhanced vouchers through HUD. These enhanced vouchers are similar to the traditional vouchers, but they do vary slightly. With the enhanced vouchers, HUD will only guarantee the funding for a period of one year. Housing Manager Barnes said if the contracts are renewed, the funding would be guaranteed for five years. There is also some uncertainty on the administrative fees with the enhanced vouchers. Staff's recommendation is to renew the project based vouchers. The amount the owner has Plymouth Housing and Redevelopment Authority April 15, 2004 Page 2 requested is $1 million. Housing Manager Barnes said it would be due and payable when the owner no longer participates in the program. He stated MHFA is offering to provide $750,000 and has requested that the HRA provide $250,000. Commissioner Ludovissie asked if this would be considered a loan. Housing Manager Barnes said yes, and there would be a mortgage on the property. He said the MHFA would be in the second position and the HRA would be in third position. It would be an equity loan with the ability to use the money outside of the project. Chair Henderson asked what the buildings were valued at. Housing Manager Barnes said each building is worth about $9 million. Commissioner Ludovissie asked if the money would have to be paid back if the owner withdraws before five years. Housing Manager Barnes answered affirmatively. Executive Director Hurlburt said the two loans combined with the first mortgage couldn't exceed 100% of the value of the buildings. Commissioner Bildsoe asked if the debt exceeds the value, would our loan automatically be due. Housing Manager Barnes said we could talk with the housing finance agency but couldn't guarantee it. Chair Henderson asked if this was discussed at the last meeting and said she was uncertain if this was standard procedure. Housing Manager Barnes said the project -based voucher program has been around for 20 years. The contracts are just now expiring so HUD and MHFA are working on different options to keep the units affordable. One of the ways has been to offer the Mark-up to Market Program and provide an equity loan. Commissioner Ludovissie said he is uncomfortable with the appearance of the proposal, but looking at the bigger picture he sees the need. Housing Manager Barnes said the per unit subsidy for this project is about $5,200. He said in comparison, the City's contribution for The Stone Creek Village project was about $11,000 between the HRA and the City. Commissioner Bildsoe asked how much the value of apartment buildings went down. Executive Director Hurlburt said it was approximately 2%. She said the market rate rentals are down, however the affordable units are still in demand. Support Services Manager Denise Hutt said there are concerns with the staff time involved if the HRA issues the enhanced vouchers. She said there is also the possibility of HUD capping the funding per unit. She said if we take enhanced vouchers we probably wouldn't have enough to serve the people we already have. She said overall it would be best for the City to keep the project -based assistance for as long as possible. A resident of Willow Creek Apartments stated she has lived there for many years and has raised her daughter there. She said she has concerns with this, as they didn't expect any changes. She said they are concerned about their homes and want them to stay subsidized. Housing Manager Barnes indicated the resolution for this item was excluded from the packet but has since been distributed to the Board. MOTION by Commissioner Bildsoe, seconded by Chair Henderson, that the HRA approve an equity loan in the amount of $250,000 to Bigos-Willow Creek LLC, for the preservation of 48 Project -Based Section 8 units. Vote. 3 Ayes. MOTION approved. Plymouth Housing and Redevelopment Authority April 15, 2004 Page 3 B. Transfer of PTS Reserves to HRA General Fund Reserve Account. Housing Manager Barnes gave an overview of the March 31, 2004 staff report. He said there are three reserve accounts for Plymouth Towne Square. The accounts are Operating, Repair and Replacement, and Debt Service. He said the Operating reserve account has a balance of 947,282 and the City's Finance Department recommends a balance of $200,000 to ensure there are enough funds for unexpected occurrences. Housing Manager Barnes said the reserve funds in the Operating account would be better utilized if they were transferred to the HRA's General Fund Reserve account. He said staff is recommending a transfer of $700,000, which would leave just over $200,000. Commissioner Ludovissie asked how difficult it would be to access the money from the General Fund. Housing Manager Barnes said this is a common practice and the funds would be readily available. MOTION by Commissioner Bildsoe, seconded by Commissioner Ludovissie, that the HRA approve the request to transfer $700,000 to the HRA's General Fund Reserve Account. Vote. 3 Ayes. MOTION approved. A. Plymouth Towne Square common area renovations. Grace Management Representative Jodi Boedigheimer gave an overview of the April 9, 2004 staff report. She showed several carpet and design samples. Housing Manager Barnes suggested a carpet pattern or medallion in the foyer to accent the rest of the carpeted area. Ms. Boedigheimer said the green doors would be painted brown for a more consistent look throughout the building. She gave a cost comparison of re -upholstering vs. purchasing new pieces and stated there isn't much difference. She said the dining room chairs would be more expensive to replace. Executive Director Hurlburt said there needs to be a good transition in the area of the stairs and hallways. Ms. Boedigheimer asked if there are funds available for re - carpeting the second floor. Housing Manager Barnes answered affirmatively. Ms. Boedigheimer said the carpet is not worn but it will not match the new carpet. She said she would come back with a more definite style at the next meeting. Commissioner Bildsoe said as long as there is funding for the 2nd floor carpet then we should do it now. Chair Henderson asked if the window treatments would change. Ms. Boedigheimer said the window treatments style and colors would be updated. The Commissioners asked that Ms. Boedigheimer present two - three more narrowed down options for carpet and color choices at the next meeting. D. Potential Senior Apartment project. Housing Manager Barnes gave an overview of the staff report. He said CSM Corporation has been working over the past year to redevelop the Dana Spicer site located at Vicksburg Lane and Highway 55. He said they were denied their first request, which included a Lowe's and Kohl's and some smaller retail stores. Housing Manager Barnes said since then, CSM Corporation has been working on revising their plan to include some housing along with retail. He said their proposed plan now shows townhome style housing units. He said this might not provide the best buffer. Housing Manager Barnes said apartment style units might be better suited for this site. He said this project is currently being reviewed by the City's Planning Staff and it is scheduled Plymouth Housing and Redevelopment Authority April 15, 2004 Page 4 for a public hearing at the Planning Commission meeting on May 5, 2004. He said the HRA has been researching sites for a senior housing project for the last few years. Housing Manager Barnes said several sites were looked at, however none have worked because of location, size, or price. Housing Manager Barnes said this site might be a good opportunity for a senior facility. It would be approximately half the size of Plymouth Towne Square. Housing Manager Barnes indicated staff has had some informal discussions with CSM Corporation and they have shown some interest. He said the timing is good and the land costs may be reasonable. Housing Manager Barnes also added that interest rates are very low. He said there could be tax increment financing which could generate $4.7 million over a 25 -year period. Executive Director Hurlburt said we had looked at housing as a potential component a year ago and when it didn't work economically in the project, we looked at taking some tax increment revenue outside the project for rental housing, however then we would have to look for another site. Executive Director Hurlburt said a year ago we had made contact with Common Bond and at that time they were not interested. Chair Henderson asked if staff feels this will be recommended for approval by Planning Commission and City Council. Housing Manager Barnes said he is unsure if it will get approved but if it does go forward, the HRA would like to have this as an option. He said the housing component is the biggest difference in CSM's new proposal. Commissioner Bildsoe asked what the size of the site is. Housing Manager Barnes said there are 5 acres available for the housing site. He said the HRA would need 2.5 to 3 acres to build a 50 - unit senior facility. Executive Director Hurlburt said regardless of what happens with the concept approval, staff will not recommend approval with a townhouse layout as it is on the plan. Commissioner Bildsoe asked if a lease could be done with CSM, Corp. Executive Director Hurlburt answered no and that the HRA would need to own it. Commissioner Bildsoe asked if there would be any possibility of eliminating the fast food restaurant from the plan. Executive Director Hurlburt said CSM, Corporation would not consider that. Commissioner Ludovissie asked why the City Council denied the first request. Commissioner Bildsoe said there was some resident opposition. He said the revised plan is more palatable. Housing Manager Barnes said the cost of construction would be about $4.1 million, which does not include the cost of the land. Commissioner Ludovissie asked if we know the cost of the land. Housing Manager Barnes said it's a little premature to be talking land cost right now. Executive Director Hurlburt said there would be some issues with transportation such as left turn lane improvements at Highway 55. There are some infrastructure issues that will become part of the negotiation for the land. Housing Manager Barnes said with a 50 -unit building, the subsidy would be $150,000 a year. He also indicated that the units could be all subsidized or a mix of market rate and subsidized. Housing Manager Barnes indicated that bond prices are very good right now, however they are expected to rise over the next 2-3 years. Commissioner Bildsoe said he would like to see a mixed market with partial subsidy. MOTION by Commissioner Bildsoe, seconded by Chair Henderson, that the HRA direct staff to begin preliminary evaluation of the development of a new senior apartment facility. Vote. 3 Ayes. MOTION approved. Plymouth Housing and Redevelopment Authority April 15, 2004 Page 5 Housing Manager Barnes said the only item on the May 8, 2004 agenda would be the discussion of the Towne Square renovations. He said we could cancel the May 8, 2004 and place that item on the June meeting agenda and still reach the October deadline. Chair Henderson and Commissioners Bildsoe and Ludovissie agreed to cancel the May 8, 2004, HRA meeting. 4. ADJOURNMENT Meeting adjourned at 8:30 p.m. HRA/Minutes/04/15/04