HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-17-2005MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
February 17, 2005
PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, Jenny Flansburg, Tim
Bildsoe, and Jim Kovach
ABSENT: None
STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes,
HRA Specialist Tracy Jones, Housing Specialist Paula Dorn and Office Support Representative
Barb Peterson.
OTHERS PRESENT: Bill Wolters from Constructive Ideas, Link Wilson from Miller Hansen
Partners, Lynette Slater from Dorsey & Whitney, and Dave MacGillivray from Springsted, Inc.
1. CALL TO ORDER
Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order
February 17, 2005, at 7:05 PM.
Housing Manager Barnes noted there is an attachment to Item 2C and added an additional item
to the consent agenda as 2F
2. CONSENT AGENDA
A. Approval of the January 20, 2005 HRA Meeting Minutes.
B. Plymouth Towne Square — Accept monthly housing reports.
C. New Senior Project. Approve Purchase Agreement.
D. New Senior Project. Approve Development and Pledge Agreements.
E. Approve the Section 8 Management Assessment Program (SEMAP) Certification
Submission.
F. New Senior Project. Transfer Funds from the HRA Reserve Account to the Construction
Account.
MOTION by Commissioner Bildsoe, seconded by Commissioner Ludovissie, approving the
consent agenda.
Vote. 5 Ayes. MOTION approved.
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February 17, 2005
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3. PUBLIC HEARING
A. Community Development Block Grant. Consider 2005 Action Plan
Housing Manager Barnes introduced HRA Specialist Jones. Ms. Jones presented an overview of
the CDBG program for 2005 which will begin on July 1, 2005. She said staff recommends
providing $112,000.00 to the First Time Homebuyer program and $112,000.00 to the Housing
Rehabilitation program.
Ms. Jones stated that staff recommends increasing the funding for administration. She said that
in 2001 and 2002 expenses totaled only half the budget, however, the extra funds have been
spent down so staff is requesting that $32,894.00 be budgeted for administration of the 2005
program year.
HRA Specialist Jones explained the funding recommended for public services activities. She
said regulations stipulate that public service funding may not exceed 15% of the City's total
allocation ($302,894.00), plus 15% of the previous year's program income ($108,918.33). HRA
Specialist Jones stated that staff recommends allocating $46,000.00 among six public services.
Chair Henderson opened the Public Hearing.
Mike Vraa, representing HomeLine, thanked the HRA for their ongoing funding. Commissioner
Ludovissie asked why last years funding was not expended by year end. HRA Specialist Jones
said the invoice was received, but not in time to be included in the staff report. Housing
Manager Barnes asked Mr. Vraa to explain the core purpose of HomeLine. Mr. Vraa replied that
they man a hotline which serves tenants with legal questions and also provide speakers for high
school students to help them become successful renters.
Liz Johnson represented PRISM, Elder Express. She explained that Elder Express provides
transportation for seniors to help them stay independent. Commissioner Bildsoe asked what
services they provide in Plymouth and if they serve Plymouth Towne Square. Ms. Johnson said
they work mainly with seniors who need rides to appointments. Chair Henderson asked how
clients access their program. Ms. Johnson said the client calls PRISM, is registered, provides
contact information and then the drivers pick them up for their appointment. Commissioner
Ludovissie asked how they charge for the transportation. Ms. Johnson said the cost is a
suggested donation. Commissioner Ludovissie asked what percentage the donation covers. Ms.
Johnson replied approximately 10%. Commissioner Ludovissie asked why other communities
use the service more than Plymouth. Director Hurlburt commented that PRISM serves only the
Plymouth area east of 494.
Larry Nelson, representing YMCA and Point Northwest, thanked the HRA for their ongoing
support. He said Point Northwest provides crisis intervention for youth and families, particularly
run -away youth. He said there are volunteers in Plymouth who take youth into their homes for a
short period of time.
Julie Danzl, representing Greater Minneapolis Daycare, thanked the HRA and said they are
currently serving nine families in the Plymouth area. She said the organization has been affected
by government cuts. Commissioner Bildsoe asked what the funding is used for in Plymouth.
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February 17, 2005
Page 3
Ms. Danzl said they are using the funding as a bridge to help families until their name comes up
on the wait list. They also subsidize co -pays for 8-10 families.
Bill O'Meara, from Community Action for Suburban Hennepin County (CASH), thanked the
HRA for their ongoing support. Mr. O'Meara stated that they hold classes for first time
homebuyers and also provide foreclosure prevention and rehab information along with reverse
mortgage counseling advice for seniors. Commissioner Bildsoe asked about the program for first
time homebuyers and if the price of homes is affecting the use of their services in Plymouth. Mr.
O'Meara said there are still homes available in Plymouth that are within the guidelines for the
program. Commissioner Bildsoe asked for an example of an average client and what CASH
offers them. Mr. O'Meara replied they provide first time homebuyer classes so the client can
determine if they can afford to purchase a home. The potential homebuyers also learn about the
appraisal process, what part the bank plays and if the house is still affordable after needed repairs
are made. Housing Manager Barnes added that participants in the HRA's program are required
to attend these classes.
Thomas Crystal, representing Family Hope Services, thanked the HRA for their previous and
continuing support. Mr. Crystal stated that Family Hope Services provides a safe place for kids.
Commissioner Bildsoe asked for an update on the Treehouse, a facility which is planned to be
built on County Road 101. Mr. Crystal said the site is secured and a decision will be determined
within the next two months as to when construction will begin. Commissioner Bildsoe asked
about the number of people served in Plymouth. Mr. Crystal said weekly support group services
are provided and one-on-one mentoring with 10-20 at -risk youth.
Chair Henderson thanked the representatives for addressing the Board and then closed the Public
Hearing.
Motion by Commissioner Bildsoe, seconded by Commissioner Flansburg, adopting HRA
Resolution 2005-04 recommending that the City Council adopt the 2005 CDBG program funding
as recommended by staff.
Vote. 5 Ayes. Motion approved.
B. New Senior Project — Hold a Public Hearing to consider setting the sale of General
Obligation Governmental Housing Project Bonds with a not to exceed amount of $12
million dollars and recommend that the City Council affirm their G.O. backing for the
Bonds.
Housing Manager Barnes introduced Bill Wolters, Owners Representative from Constructive
Ideas, Link Wilson, architect, from Miller Hansen Partners, Lynette Slater, bond counsel, from
Dorsey & Whitney, and Dave MacGillivray, financial consultant, from Springsted, Inc.
Housing Manager Barnes stated that the Commissioners have before them drawings including
initial layouts and concepts that Miller Hansen has proposed. He said staff is just beginning to
look at numbers and the figures could change depending on how the bids come in.
Commissioner Bildsoe asked about the cost. Housing Manager Barnes said the estimated cost is
85,000 per unit. Commissioner Bildsoe asked when they will know what the budget will be.
Housing Manager Barnes replied that a draft has been completed by Bill Wolters and the
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February 17, 2005
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architects are currently reviewing the cost estimates. Director Hurlburt said it will also help to
know how many units will be built. Commissioner Bildsoe asked if there would be an
opportunity to discuss this again before the bond sale. Housing Manager Barnes said the HRA
will have an opportunity at the March meeting. The Council will postpone any action on the sale
of the larger bond issue until March 29th. Housing Manager Barnes said the bonds for either size
building will probably be sold in mid-April.
Housing Manager Barnes presented an overview of the staff report and said staff has looked at
increasing the number of units to 95 and have determined it would be feasible to do so providing
the HRA is willing to commit approximately $450,000 in equity. If the HRA decides to build
the 95 -unit building the City Council will hold a public hearing on February 22, 2005. He
pointed out that the City Council did have some concerns at their February
8th
meeting and the
HRA Commissioners have an e-mail from Council member Sandy Hewitt addressing her
concerns.
Housing Manager Barnes said traffic was one of the concerns the Council had. He said staff
looked at a comprehensive traffic study which had been done for the entire development and
compared senior housing to the day care center, which had been modeled in the traffic study.
The senior housing project would have much less traffic. The difference between the 75 and 96
unit building size would be 78 trips per day.
Housing Manager Barnes said the amenities would be the same as the 75 -unit building. He said
the building will not require an on-going subsidy from the HRA's local tax levy. He said the
affordability will still remain the same regardless of the number of units, which is 35% of the
units. Springsted, Inc. has estimated the G.O. backed Governmental Housing Project bond issue
would be $9,915,000 to pay for the development costs of the building.
Housing Manager Barnes explained the difference between a competitive sale and a negotiated
sale. He said staff is recommending a competitive sale for the bonds.
Housing Manager Barnes said the City would be pledging their G.O. backing so if there would
ever be a shortfall in debt service payments the HRA would need to make up the difference in
the payments.
Commissioner Bildsoe commented that besides traffic being a concern of the City Council they
were also concerned about density. Commissioner Bildsoe asked where the data for the traffic
study came from. Director Hurlburt explained where the figures were taken from and stated that
the numbers have been validated by our traffic consultants. She said seniors don't drive very
much and don't need to drive at peak hours so the traffic impact of a senior building is probably
the lowest you could have.
Commissioner Ludovissie commented about the density. He asked if other members of the City
Council are as concerned as Commissioner Hewitt. Commissioner Bildsoe said no conclusion
was reached by the Council at their meeting and feels they are waiting for the HRA to decide on
the number of units. Commissioner Bildsoe believes the other council members think this
opportunity may not be available again and the HRA and City should maximize this opportunity.
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February 17, 2005
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Commissioner Flansburg agreed that the HRA needs to work in parallel with the City Council
and would encourage the Council to take advantage of this opportunity.
Director Hurlburt said it is up to the HRA to decide on the project size and the City Council's
role is to approve the G.O. for the bond. She said it is important to decide on the building size
tonight so plans can continue to move ahead. Director Hurlburt said the Council is concerned
because they have not seen plans of the building yet. Commissioner Ludovissie said he is
concerned about the timing of the project mainly due to rising interest rates.
Chair Henderson asked if the plan of the building is going to be presented at the next City
Council meeting. Director Hurlburt said the plans can be shown at the February 22nd
meeting.
Chair Henderson asked if they have a plan that takes the design further so the Council can see it
in relation to the entire project. Mr. Wilson said they can easily develop dimensional prints.
Commissioner Bildsoe asked about pedestrian movement in regards to the rest of the
development in the area. He suggested a walking path around the building and also incorporate a
place for the residents to gather outside, possibly by the pond. Mr. Wilson said there will be an
extensive porch around the front. Discussion continued regarding the design of the building.
Commissioner Ludovissie asked about exterior options. He asked if it could be accented more
by using different materials. Discussion was held regarding the building exterior. Chair
Henderson asked about the maintenance of Hardy Plank siding. Mr. Wolters said it would be
very low maintenance and would be as good as brick. Commissioner Flansburg asked what the
change in seasons has done for the siding. He said they have used it and have not had any issues.
Commissioner Bildsoe asked about a picture for the City Council meeting from the south to
include the berm. Director Hurlburt said they have talked about providing section views for the
Council's February 22nd City Council meeting.
Commissioner Bildsoe asked how much higher the four story was than the three story. Mr.
Wilson said 10 feet. Commissioner Bildsoe asked to have the pedestrian flow issues addressed
at the February 22nd council meeting.
Commissioner Flansburg asked whether the cost of brick was for the 96 unit building. She asked
where the extra expenditures would come from. Housing Manager Barnes said the brick would
be on the construction bid documents as an upgrade item and explained the bid process.
Chair Henderson asked if the $9,915,000 figure is pretty firm. Housing Manager Barnes said
that the amount of bond issue we can generate is reflective of the revenue that can be captured
from rents. Chair Henderson said she feels that $12,000,000 million should be the absolute cap
which would leave flexibility between the two amounts.
Mr. MacGillivray clarified the financing side of the project. He explained that the bond issue
does not totally fund the $85,000 per unit and the HRA has to contribute $450,000.00. Mr.
MacGillivray does not feel the pro forma side will change but the revenue captured could
change. Housing Manager Barnes said a full market study is being done and rents could change
based on the findings of the survey. Commissioner Ludovissie said we need to provide a good
quality product and meet the objectives we are setting forth. Commissioner Ludovissie asked
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February 17, 2005
Page 6
when the Maxfield market study will be ready. Housing Manager Barnes replied it should be
ready by the beginning of March.
Commissioner Bildsoe asked Mr. Wolters how the market is looking for construction pricing in
the next six months and if the number of units was less than 96 at what point does it change the
concept of the building. Mr. Wilson said any number divisible by four would work. Mr.
Wolters said to keep in mind that it would be difficult to add on to the building later so what is
done the first time will be the final project. Mr. Wolters said this segment of the construction
market never slowed down and said 2005 will be a very busy year. Commissioner Bildsoe asked
Mr. Wolters if he was comfortable with the contingencies. He replied affirmatively.
Commissioner Ludovissie said the quality side needs to be done right at the beginning in order to
cut the cost later on.
Chair Henderson opened the Public Hearing.
Chair Henderson closed the Public Hearing.
Discussion occurred regarding the size of the building. Director Hurlburt said either size would
work and the issue would be what the needs in the community are. She said the Board needs to
provide direction for staff.
Chair Henderson asked about the rental market now. Housing Manager Barnes said for general
occupancy it is slightly above 5% right now. He said the affordable senior rental market is
around 2%. Chair Henderson said that after looking at the long term picture she feels the larger
number of units would be advantageous.
Commissioner Bildsoe said we are already making a contribution to Plymouth Towne Square
and feels if the HRA would need to make an additional contribution to this building it could be
done.
Commissioner Flansburg said she is in favor of the 96 building unit. She feels there is leeway in
the pro forma and feels very confident about the location.
Commissioner Kovach asked about Council Member Hewitt's comment about affordable
housing being built. Director Hurlburt said there has not been any senior affordable housing
built in the last five years.
Commissioner Ludovissie feels the larger product would be more beneficial.
Commissioner Bildsoe feels the HRA Mission is what we are striving for with this project. He
feels providing affordability and moving from 75 to 96 units is what the HRA is designed to do.
He said the demographics show the increasing population is geared to over 65. He feels the
opportunity is here and the location is good. He said he is supporting the 96 unit project.
Motion by Commissioner Bildsoe, seconded by Commissioner Flansburg, to set the sale of
General Obligation Governmental Housing Project Bonds with a not to exceed amount of $12
million and recommend that the City Council affirm their G.O. backing for the bonds.
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February 17, 2005
Page 7
Roll Call Vote. 5 Ayes. Motion approved.
Meeting adjourned at 8:58 PM.
HRA/Minutes/2-17-05