HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-15-2004MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
July 15, 2004
PRESENT: Commissioners Susan Henderson, Steve Ludovissie, Jenny Hibbard and Tim
Bildsoe
ABSENT: Commissioner Jim Kovach
STAFF PRESENT: Executive Director Anne Hurlburt, HRA Specialist Tracy Jones, Housing
Program Manager Jim Barnes, Office Support Representative Barb Peterson
OTHERS PRESENT: Grace Management Representative Jodi Boedigheimer
1. CALL TO ORDER
Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order
July 15, 2004 at 7:00 p.m.
2. CONSENT AGENDA
A. Approval of the June 17, 2004 HRA Meeting Minutes.
B. Plymouth Towne Square - Accept monthly housing reports.
MOTION by Commissioner Bildsoe, seconded by Commissioner Hibbard, approving the
Consent Agenda items.
Vote. 4 Ayes. Motion approved unanimously.
3. NEW BUSINESS
A. Mission Ponds HOA Regarding Potential Lot Purchase
Director Hurlburt explained the request by Mission Ponds Homeowners Association for a Land
Use Guide Plan amendment. She stated that the Planning Commission recommended denial of
the proposed project. The applicant requested a 60 -day extension before going to the City
Council on August 10, 2004, which would allow the applicant time to approach the HRA to see
if there was an interest in purchasing the lot at a below-market price.
Chair Henderson introduced the applicant, Jeff Carson, with Carson, Clelland and Schreder
representing Mission Ponds Homeowners Association.
Mr. Carson stated the purpose for being here tonight is to offer the lot to the HRA at a below
market price on which a low-income house could be built. Mr. Carson stated this item has been
brought before the Planning Commission and was denied. He feels the amendment will also be
denied by the City Council unless the HRA takes an interest in the lot.
Plymouth Housing and Redevelopment Authority
July 15, 2004
Page 2
Mr. Carson explained the reasons the Planning Commission used to recommend denial of the
item. Commissioner Bildsoe asked Mr. Carson why they want to give the lot to the HRA. Mr.
Carson stated they are not giving the lot but are interested in selling the lot to the HRA at below
market cost. Commissioner Hibbard asked what the driver is for selling the lot. Mr. Carson
explained that a creek separates the townhome properties and the outlot, which makes the outlot
difficult to access. Commissioner Hibbard asked what percentage of support this item has from
the members of the HOA. Mr. Carson stated there are twenty-seven units and they are close to
unanimous in favor of selling the lot. Chair Henderson asked what the market price of the
property is. Mr. Carson said the selling price has not been determined.
Commissioner Ludovissie asked if the HOA is interested in giving the land to the HRA. Mr.
Carson replied negatively.
Chair Henderson introduced Mark Pilon, 11245 36th Place N. Mr. Pilon said he is President of
the Mission Ponds HOA. He stated the reasons the HOA is pursuing this sale. Mr. Pilon said it
is a maintenance issue and the homeowners cannot maintain it. He said that originally this area
was designed for a single family home and the HOA feels a home would complete the
neighborhood on the backside of the development.
Mr. Pilon asked the Board how the HOA would go about the process of determining a price.
Housing Manager Barnes said an appraisal would be done of the land and staff would look at
assessing data to establish the market value. He said the HRA also looks at what the project will
cost and if that figure is affordable for a low-income family. Director Hurlburt added that
criteria is set at 80% of median income. She stated the home would need to be $200,000 or less,
so the amount the HRA can pay for the land would be limited.
Chair Henderson introduced Mike Monohan, 3710 Arrowood Lane N. Mr. Monohan said that in
1977 plans showed a trail coming from the upper park area crossing over 36th Place. He said the
neighbors in Mission Hills, the adjacent neighborhood, would like the area to remain as green
space. Mr. Monohan said it is a unique lot and would need a special home. He said that one
home in the neighborhood just sold for $349,000. Commissioner Bildsoe asked if Mission Hills
has an association. He said there is, but they are not active at this time. They could bring an
association back together and potentially take over the upkeep of the land.
Chair Henderson introduced Ken Root, 11335 37th Ave. N. Mr. Root said he lives adjacent to
the vacant land. He stated that homeowners from Mission Ponds think a single family home
would make the vacant land complete, but the homeowners from Mission Hills feel it is complete
now. They wish to maintain the green space.
Commissioner Hibbard asked Mr. Root what he feels the driving force is to sell the land. Mr.
Root feels it is a financial issue. He stated that Mission Hills has obtained signatures from 50 of
the 52 homeowners that want it to remain vacant.
Chair Henderson introduced Al Johnson, 3740 Cottonwood Lane N. He stated that he has lived
in the neighborhood 27 years and explained how the lot was incorporated into the townhouse
development.
Plymouth Housing and Redevelopment Authority
July 15, 2004
Page 3
Chair Henderson introduced Steve Chesebrough, 11255 36th Place N. a resident of Mission
Ponds HOA. Mr. Chesebrough said he is not familiar with the HRA process and would like an
idea how long a project like this would take and asked questions regarding the process. Housing
Manager Barnes said they would be looking at anywhere from 12 to 18 months for the process,
to purchase a lot, build and sell a home.
Mr. Chesebrough questioned the dollar amount of resources the HRA has available. Mr.
Chesebrough said he has seen a figure of approximately three million dollars. Housing Manager
Barnes stated the figure looks large because the Plymouth Towne Square maintenance reserves
and federal government obligations are included in the financial statements.
Director Hurlburt explained the Section 8 program which is also operated by the HRA. She
explained what type of expenses the Mission Ponds HOA would be liable for. Director Hurlburt
said they would need to provide a clear title for the vacant land before anything could be done.
Commissioner Bildsoe asked what the motivation is to sell the property to the HRA. Mr.
Chesebrough gave an overview of the history of the vacant land. He stated the land is no longer
enjoyable for the HOA and difficult to maintain.
Chair Henderson introduced Susan Peterson, 8880 Black Oaks Lane, Maple Grove, MN. Ms.
Peterson is the attorney representing Kenneth and Barbara Root. Ms. Peterson stated that her
reason for being here is to understand what the HRA does. She asked questions such as how
much need there would be in the City for low-income housing and how does the HRA decide
where to build low-income housing. Housing Manager Barnes explained the HRA does not
typically act as a developer, rather they work with developers and look at projects as they come
forward to determine if the use would be in keeping with HRA objectives. Director Hurlburt
added the HRA sometimes partners with a nonprofit to build homes on single lots.
Commissioner Bildsoe asked Ms. Peterson why she is asking the questions. Ms. Peterson said
she is trying to figure out if the lot is a viable option for the HRA. Commissioner Bildsoe replied
that it is not his idea of a useful way to spend HRA dollars. Commissioner Hibbard explained
that the HRA has a goal and takes many things into consideration before beginning a project.
Commissioner Bildsoe stated that the purchase of this land is not allocated in the HRA budget at
this time and does not feel it is a good use of HRA funds. Commissioner Bildsoe stated that he
will not support this proposal.
Commissioner Ludovissie feels that the project is a lot more complicated than proposed by the
applicant. He does not feel it is justified to change the lot and said he would have a difficult time
supporting the proposal.
Commissioner Hibbard feels that the project is very complex and the HRA has to consider all
options. This property is too restrictive in her opinion.
Commissioner Bildsoe suggested the two homeowners associations explore maintenance issues.
Chair Henderson stated that she is in agreement with the other commissioners. The discussion
ended with no action being taken.
Plymouth Housing and Redevelopment Authority
July 15, 2004
Page 4
B. 2005 HRA Preliminary Budgets
Housing Manager Barnes said the budget is preliminary at this time and the Council is scheduled
to adopt a preliminary levy for 2005 by Sept. 15th . He stated there are three separate program
budgets contained within the HRA budget: the Community Development Block Grant (CDBG),
Section 8, and the HRA General Fund.
Housing Manager Barnes said the CDBG budget does not have as much carry-over as in
previous years. The reason for this is that repayments are slowing down and people do not tend
to refinance when interest rates rise. Property tax support for this budget shows an increase of
648 or 3.6% due to an increase in the City's allocations for rental of equipment, photocopying,
data processing and facilities management.
Housing Manager Barnes stated the only increase proposed within the Section 8 budget is for the
purchase of a mid-size car ($14,500) to be used for housing inspections. Chair Henderson asked
about insurance for the vehicle and Housing Manager Barnes said it is covered in the
expenditure. Discussion occurred about whether this vehicle would be owned by the HRA or the
City.
Housing Manager Barnes said the proposed tax levy to support the HRA General Fund would
increase by $25,383 which reflects the general increase in salaries, benefits and other overhead,
plus $2,000 for non-CDBG eligible assistance to Interfaith Outreach and PRISM.
Housing Manager Barnes stated a one-time transfer from the reserve accounts is being requested
to assist two projects. One is the transfer of $50,000 for the Willow Woods project which will be
carried over into 2005 and the additional $100,000 would go towards making units affordable at
the Schmidt Lake Road/Northwest Boulevard project.
Director Hurlburt added that the City is in the process of putting together department budgets
and the finance department feels that part of their expenses for the HRA should be allocated
towards the HRA's budget. She said the only way to do that might be through the levy. Housing
Manager Barnes said the increase in the levy could be approximately $40,000 spread between
the three budgets. The Finance Department has estimated this increase to be approximately
40,000 split between the three budgets.
Commissioner Ludovissie stated that he hasn't had a problem paying for City help but feels the
HRA may need to look into using independent sources. Commissioner Hibbard asked how the
finance department is arriving at the dollar amount. Housing Manager Barnes said it is based on
the cost allocation plan that was in effect years ago for CDBG. Director Hurlburt said more
items are allocated now than previously, so there could be double counting. Chair Henderson
asked where the money comes from. Director Hurlburt said it would come from the tax levy.
She said the budget figures will be known by the August
19th
HRA meeting and can be
discussed at that time.
Revenue sources for the next year were discussed. Commissioner Bildsoe brought up the fact
that he is concerned because the City is off levy limits this year. Director Hurlburt provided
background information on levy limits.
Plymouth Housing and Redevelopment Authority
July 15, 2004
Page 5
C. Schmidt lake Road/Northwest Boulevard Financial Assistance
Commissioner Bildsoe suggested recommending approval of the Heritage Development proposal
to purchase the property and asked how the process would work.
HRA Specialist Jones said this item will go to the Council on July 27th and at that meeting, if the
Council decides to sell the land to one of the applicants, a purchase agreement would be drawn
up. If Heritage is selected they would be looking at closing on the property 30 days after final
plat approval. Housing Manager Barnes said the project would probably be finalized in the
winter months with construction beginning sometime next spring.
Commissioner Bildsoe recommended placing a City new development sign on the property.
Commissioner Ludovissie asked about the background of Heritage Development. Housing
Manager Barnes said they are a mid-size developer and have focused on building outside the
metro area.
MOTION by Commissioner Bildsoe, seconded by Commissioner Ludovissie, that the Plymouth
Housing and Redevelopment Board of Commissioners recommend approval of the Heritage
Development proposal to the City Council.
D. Plymouth Towne Square. Satellite Antenna.
Housing Manager Barnes said that when Plymouth Towne Square was built in 1994 all the latest
technological features were included, however, satellite was not considered cost effective at that
time. Many residents are requesting satellite dishes for access to international stations.
Housing Manager Barnes explained wiring agreements and said the HRA paid for installation of
antennas and cabling within the building. He said staff has solicited two bids from satellite
system companies and stated what the two companies would provide.
Housing Manager Barnes said Ron's Satellite Systems is proposing to install a Central Satellite
Antenna System that will consist of 3-4 satellite dishes measuring 36 inches in diameter. They
would be positioned on the roof of the building. Their bid includes all of the necessary hardware
and equipment. In this bid they would be the exclusive dealer for the property for 3 years, which
means all of the residents who want satellite T.V. would be required to subscribe through Ron's
Satellite Systems. The monthly service fees charged to residents would be the same as if they
contracted directly with Dish Network. They also offer a sales commission to the property of
25 per new activation, which would help cover the upfront investment made by the HRA for the
installation. In this proposal, the HRA would own all of the equipment. Ron's Satellite Systems
bid is $1,710.33.
The second bid was from oDa Midwest Ltd. They are proposing to install a Central Satellite
Antenna System that will consist of 3 satellite dishes measuring 36 inches in diameter. These
units would be installed on the roof. Their bid includes all of the necessary hardware and
equipment. In this bid they have two options. Option 1 would allow them to be the exclusive
dealer for the property for a designated period between 5-10 years, which means all of the
Plymouth Housing and Redevelopment Authority
July 15, 2004
Page 6
residents who want satellite T.V. would be required to subscribe through oDa Midwest Ltd.
Option 2 does not include any such agreement, which means the HRA can determine who is
eligible to install and hook-up services for new customers. The monthly service fees charged to
residents would be the same as if they contracted directly with Dish Network. Their bid was $0
exclusive agreement, leased equipment) or $744.00 (no exclusive agreement, owned equipment)
Housing Manager Barnes explained the difference between leasing and buying the equipment.
Chair Henderson asked how many residents are interested in subscribing. Housing Manager
Barnes said seven right now and there are requests from 5 more.
Grace Management Representative Boedigheimer asked about the existing dishes. Housing
Manager Barnes said they would be removed from the building and given to their owners.
Discussion occurred regarding the placing of dishes on the roof. Housing Manager Barnes said
both companies would put the dish on a pole. However, the cost would increase by
approximately $2,000.
Commissioner Bildsoe asked if there is a vendor in the City of Plymouth that would provide this
service. Housing Manager Barnes said he wasn't sure, but staff would do some research.
MOTION by Commissioner Bildsoe, seconded by Commissioner Hibbard, authorizing staff to
obtain a bid from a Plymouth vendor, if possible, and accept either that bid or the bid from oDa
Midwest Ltd.
Vote. 4 Ayes. Motion approved.
Chair Henderson asked for an update on the decorating at PTS. Housing Manager Barnes said
more samples are being brought in. Commissioner Bildsoe asked to be informed when the
samples are ready and requested that the commissioners be able to look at them again.
4. ADJOURNMENT
Meeting adjourned at 8:55 p.m.
HRA/Minutes/07/15/04