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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. Plymouth Housing and Redevelopment Authority February 17, 2005 Page 2 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. Plymouth Housing and Redevelopment Authority 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 Plymouth Housing and Redevelopment Authority February 17, 2005 Page 4 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. Plymouth Housing and Redevelopment Authority February 17, 2005 Page 5 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 Plymouth Housing and Redevelopment Authority 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. Plymouth Housing and Redevelopment Authority February 17, 2005 Page 7 Roll Call Vote. 5 Ayes. Motion approved. Meeting adjourned at 8:58 PM. HRA/Minutes/2-17-05