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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 08-19-2004MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY August 19, 2004 PRESENT: Commissioners Tim Bildsoe, Steve Ludovissie, Jenny Hibbard, and Jim Kovach ABSENT: Chair Susan Henderson STAFF PRESENT: Executive Director Anne Hurlburt, HRA Specialist Tracy Jones, Housing Program Manager Jim Barnes, Office Support Specialist Ranelle Gifford OTHERS PRESENT: None 1. CALL TO ORDER Commissioner Bildsoe called the Plymouth Housing and Redevelopment Authority meeting to order August 19, 2004 at 7:00 p.m. 2. CONSENT AGENDA A. Approval of the July 15, 2004 HRA Meeting Minutes. B. Plymouth Towne Square - Accept monthly housing reports. C. CDBG Consolidated Annual Performance and Evaluation Report (CAPER) MOTION by Commissioner Ludovissie, seconded by Commissioner Hibbard, approving the Consent Agenda items. Vote. 4 Ayes. MOTION approved unanimously. 3. NEW BUSINESS A. Update on 2005 HRA Budgets Housing Manager Barnes gave an overview of the August 5, 2004 staff report. He said there were no major changes from the previous budget reviewed in July. He said the Finance department decided not to move forward with the cost allocation plan at this time. Commissioner Ludovissie asked if the HRA levy figures for 2005 were consistent with the figures in the July 7th summary. Housing Manager Barnes said the figures had changed slightly since then. Executive Director Hurlburt said the City's 2005 budget memo from the City Manager was provided in the packet for their review. Commissioner Hibbard asked if the open space bond amounts fluctuate. Commissioner Bildsoe said the amounts may change from year to year. He said the City has received confirmation of triple A rating. Plymouth Housing and Redevelopment Authority August 19, 2004 Page 2 MOTION by Commissioner Ludovissie, seconded by Commissioner Hibbard, approving the HRA 2005 Budget. Vote. 4 Ayes. MOTION approved. B. Potential Senior Project date Executive Director Hurlburt gave an update on the potential senior housing project at the Dana Spicer site. She said there is a large demand for senior housing in the community. She said other sites have been looked at but are not suitable. She said CSM has recently submitted their development plans and would be open to selling a portion to the HRA for a senior housing project. The Council has approved the land use guide plan changes that were necessary for redevelopment. The HRA can develop a senior project without a major burden on the annual tax levy. She said if the HRA is interested in pursuing this, the first step would be to conduct a formal market study. The developer is putting the plans together for the PUD and rezoning and plan to start construction next spring. The developer has another option with a daycare center so a decision needs to be made. She showed a plan that was recently submitted by CSM showing the proposed layout of the development. She said the site would be developed as a PUD. The HRA would end up buying about 2.5-3 acres. She said one of the concerns is the transition between housing and commercial. There were early discussions of townhomes but the site is a bad location for that type of housing. She said an apartment style building offers the advantage of the height of the building, which would benefit a senior housing project. Commissioner Bildsoe asked if one of the concerns with a daycare center was the water retention pond. Executive Director Hurlburt answered affirmatively and said that had been an issue with other daycare centers. She said they discourage fencing of retaining ponds as it collects trash and debris. Commissioner Ludovissie asked if there were any negative issues with developing a senior building at this site. Housing Manager Barnes said it is a very suitable site. Executive Director Hurlburt said staff is looking at Tax Increment District for this project primarily to pay for some improvements on Highway 55 and Vicksburg such as traffic signals. As part of that, some money could be available for housing which would help defray the cost. Commissioner Bildsoe asked how much CSM was selling the land for. Housing Manager Barnes said 750,000. Commissioner Hibbard asked how much land Plymouth Towne Square is situated on. Housing Manager Barnes said it sits on about 3 acres. Executive Director Hurlburt said the new senior housing project would have about 50-60 units. Housing Manager Barnes said he is asking for a preliminary senior housing demand study which will provide us with information on the current housing needs in Plymouth and the surrounding area, both the market rate and affordable rate. He said every year Maxfield Research does a housing trend study. He said the most recent study indicates that the senior community, especially on the affordable side is expected to increase fairly dramatically. Executive Director Hurlburt said if we could find three sites, there would be enough demand in this community for affordable senior apartments. Commissioner Ludovissie asked what the hours of Lowe's would be. Executive Director Hurlburt said the hours would be 7:OOa.m. to 11:00p.m. Housing Manager Barnes said design considerations are taken into account that would address any noise issues. Housing Manager Barnes said a lot of people view this site as being too close to commercial, but the researchers have found that seniors enjoy the high intense activity. Commissioner Ludovissie asked about a pedestrian crosswalk over Highway 55. Executive Director Hurlburt said there is potential for an underpass east of Vicksburg Lane and there could Plymouth Housing and Redevelopment Authority August 19, 2004 Page 3 be some enhancements to the trails. Housing Manager Barnes stated that most of the residents at Plymouth Towne Square have a vehicle. Commissioner Bildsoe asked if there would be underground parking. Housing Manager Barnes said there would be a heated underground garage. Executive Director Hurlburt said CSM wants the development approvals done this year. She said the Council has authority over the HRA's issuance of debt and we would need to issue essential function GO bonds. She said after the first couple of years it wouldn't need an ongoing tax supplement. Housing Manager Barnes said it would meet the City's and the HRA's rental housing goals of providing at least 35% of the units at affordable rent levels. The rents of the remaining units would be based on the HRA's fair market rents, which are below the standard private sector fair market rents for comparable units. The estimated deficit that would be required for the first five years of operation totals $85,000, assuming annual operating and revenue increases of 3% and a vacancy rate of 5%. He said this is based on a $4.5 million bond issue. He said it's basically costing the same amount to build the 50-60 unit building as it did to build Plymouth Towne Square ten years ago. Executive Director Hurlburt said the Dakota County HRA has some good experience building this type of project and has shared some of their cost projections. Commissioner Bildsoe asked about the idea of getting involved in another project like this. Commissioner Hibbard said she thought it was a good idea. Housing Manager Barnes said he had spoken with Chair Henderson who indicated she was very interested in moving forward with the market study. Commissioner Bildsoe asked if CSM had a preference between the daycare or senior housing project. Executive Director Hurlburt said they are selling for the same price and have no preference either way. Commissioner Kovach said it seems it would be better for the surrounding businesses to have an apartment versus a daycare center. Commissioner Bildsoe said there wasn't a strong interest from the City Council. Executive Director Hurlburt said it was not the focus of the discussion at their earlier meeting and that some thought the daycare was fine, others had some lukewarm thoughts on housing. Since then, there has been positive feedback from some Council members. She said the Council would need to be notified if the HRA votes to move forward with the market studies. Commissioner Bildsoe said a joint meeting to share some of the ideas might be beneficial. Commissioner Ludovissie said the Council may need information on how well Plymouth Towne Square operates and how successful it is. Commissioner Bildsoe said you learn from the first senior building project and can do some things differently. Executive Director Hurlburt said there was a thought from the beginning with Plymouth Towne Square that the rents were going to be subsidized to a fairly low level and done with local money. That committed us to the long term tax support of operating the facility. She said the new project would have less of a fiscal impact on the community. Commissioner Bildsoe asked if we would use the same architect as the one for CSM. Executive Director Hurlburt said the architect for the CSM project doesn't do housing projects. Housing Manager Barnes said whoever is selected will incorporate colors and design so it flows with the surrounding development. Commissioner Bildsoe asked what the difference was in the traffic study with the daycare versus the senior housing project. Executive Director Hurlburt said the daycare would have a higher impact on traffic. Commissioner Hibbard asked what the process would be after getting a market study. Executive Director Hurlburt said we would start working with CSM on laying out the site with a footprint including the senior housing so we could get a general idea of how it would fit. She said we would also work on the financing at the same time. She said we have already had one meeting with Springstead and Dorsey to talk about the TIF district and they know what we were Plymouth Housing and Redevelopment Authority August 19, 2004 Page 4 proposing to the HRA. She said the HRA certainly has the capability to do this project. Commissioner Bildsoe asked if there would be adequate manpower considering the City Hall remodeling project that is underway. Executive Director Hurlburt answered affirmatively. MOTION by Commissioner Bildsoe, seconded by Commissioner Kovach, that the HRA Board of Commissioners recommend authorizing a market study for the purpose of developing a new senior apartment building that would be part of the CSM redevelopment. Vote. 4 Ayes. MOTION approved. Commissioner Bildsoe asked for an update on the Plymouth Towne Square remodeling. Housing Manager Barnes said the Plymouth Towne Square remodeling project is in full swing. He said the dining room chairs are being refinished in groups of 7-10. He said the residents are starting to see the results and have shown positive reactions to the changes that are being made. He said staff anticipates it will be done by the 10 -year anniversary celebration on the 13th of October. Commissioner Ludovissie asked if there were concerns with mold because of water leaks. Housing Manager Barnes said the two areas that have water leaks have been addressed. He said some minor roof repairs have been done. He said no mold has been detected from those issues. He said there is some trenching being done for drainage issues. 4. ADJOURNMENT Meeting adjourned at 7:55 p.m. HRA/Minutes/08/19/04