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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 05-18-2006MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY May 18, 2006 PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, and Jenny Flansburg ABSENT: Commissioners Jim Kovach and Tim Bildsoe STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes, Office Support Representative Barb Peterson OTHERS PRESENT: Grace Management Representative Jodi Boedigheimer, Kim Vohs from Interfaith Outreach, Amanda Novak and Corinne Wilson from CommonBond, Blake Falk and Kazim Khan. Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order May 18, 2006 at 7:10 P.M. 2. CONSENT AGENDA A. Approve April 20, 2006 HRA Meeting Minutes B. Plymouth Towne Square. — Accept monthly housing reports. MOTION by Commissioner Flansburg, seconded by Commissioner Ludovissie, approving the consent agenda. Vote. 3 Ayes. Motion approved. Housing Program Manager Barnes requested an addition to the agenda to discuss the option of installing fireplaces in some of the units. The Board agreed to add this item as agenda item 3A and change the existing item 3A (Vicksburg Commons — Approve Tax Increment Financing Plan and related documents for the Housing and Redevelopment Authority's TIF District 1-2) to 3B. A. Vicksburg Crossing Fireplaces Housing Program Manager Barnes gave an update on the unit reservations for Vicksburg Crossing. He said Jennifer Monahan, the manager for Vicksburg Crossing, has been meeting with market rate applicants. He said that her meetings with the applicants have determined that fireplaces may not be as desirable as had been thought for the units. He said the applicants stated the loss of wall space and having had them in the past and rarely Plymouth Housing and Redevelopment Authority March 16, 2006 Page 2 using them as the reasons they didn't want them. Housing Program Manager Barnes said he has asked the contractor to hold off placing the order for the fireplaces. Commissioner Ludovissie said he feels this information is being based on a limited number of applicants. Grace Management Representative Boedigheimer said approximately twenty-four applicants have been interviewed. Commissioner Ludovissie asked if the units have been wired for the fireplaces. Housing Program Manager Barnes said the wiring was included in the base bid so if the Board chooses to install fireplaces at a later date that could be done but the price might not be the same as we are paying now. Chair Henderson asked if fireplaces could be an option for people. Housing Program Manager Barnes replied that it would be difficult to do that because the contractor needs to coordinate the order with their supplier. Director Hurlburt asked when the order must be placed to stay on schedule. Housing Program Manager Barnes said that Frana indicated they would need to place the order within the next week. Commissioner Ludovissie asked if any units with fireplaces have been leased so far. Grace Management Representative Boedigheimer said that a couple of units on fourth floor have been leased with fireplaces. Housing Program Manager Barnes said staff would like direction with which to go forth. Commissioner Ludovissie suggested doing half the units. Chair Henderson suggested lowering the number to eleven and allowing staff to decide in which units to place them. MOTION by Chair Henderson, seconded by Commissioner Flansburg, allowing staff to decide how many fireplaces to install and in which units they would be placed. Vote. 3 ayes. Motion approved. B. Vicksburg Commons. Approve Tax Increment Financing Plan and related documents for the Housing and Redevelopment Authority's TIF District 1-2. Housing Program Manager Barnes said the developer; CommonBond is present along with a representative from Interfaith Outreach. He then presented an overview of the staff report. Housing Program Manager Barnes stated that if the HRA commits to a $250,000 loan the remaining uncommitted reserve fund balance would be approximately $535,000. He said that staff has already backed out the $200,000 that is set aside for roof repair at Plymouth Towne Square and the $350,000 the HRA committed to Vicksburg Crossing. Commissioner Ludovissie inquired about the status of change orders for Vicksburg Crossing. Housing Program Manager Barnes said they have not used contingency funds yet and are fairly confident that the project has passed the stage where any significant issues could arise. Housing Program Manager Barnes said comments have been received from Councilmember Willis indicating he is not in favor of creating a TIF district. He has suggested that the HRA review whether or not we could commit $500,000 to the project without creating a TIF district. Councilmember Willis's opinion is that it is too small of an amount of money to create a TIF district. He also believes that the HRA has more than enough reserves to assist this project. Plymouth Housing and Redevelopment Authority March 16, 2006 Page 3 Housing Program Manager Barnes stated he would have concerns about funding this project solely with HRA reserve funds for a number of reasons. First, the project has been underwritten by the State, County and the City and there is no available cash flow to pay the HRA back. This means the HRA would have to grant the funds to the project. He said that if the TIF District is created the tax increment collected will enable CommonBond to pay back the HRA and the Minnesota Housing Finance Agency. Secondly, MHFA is using bond funds for their $250,000, which requires repayment. Housing Program Manager Barnes stated that if there is no increment to pay back MHFA they will not be able to assist with the $250,000 and the HRA would have to cover the entire amount. Finally, he stated that he is not sure that this would be a precedent the HRA Board wants to set. It could potentially open the HRA up for future requests for "grants" instead of loans, which may not be fiscally prudent given funds for housing programs are shrinking every day. Chair Henderson had a question on the reserve page of the Plymouth Towne Square budget. She asked how the figures equated to the figures Housing Program Manager Barnes used. Housing Program Manager Barnes explained the funds. Commissioner Ludovissie asked if the reserves for Plymouth Towne Square were in good shape. Housing Programs Manger Barnes said it was and reminded the Board that last year they had a thorough review of the account completed by Grace Management. Chair Henderson indicated that she did not want the HRA reserves to fall below $500,000. She said we have one building under construction and another one in operation and we need to have financial resources to address issues if they arise. She also indicated that it would be difficult to carry out the City's housing goals for future projects if we put such a large amount in one project. Chair Henderson also stated that if we committed $500,000 to this project we may not have funds for the next project. Housing Program Manager Barnes said there are not very many changes in the Development Agreement or the Tax Increment Plan from the previous version the Board had reviewed. He said there were some minor language changes. Amanda Novak, from CommonBond, said they have had a great relationship with the City of Plymouth and are looking forward to working with them again. Kim Vohs, from Interfaith, said they see the need for housing as they work with families everyday who need housing. Commissioner Ludovissie reiterated Housing Program Manager Barnes comment that precedent setting actions are important and have to be very conscious of maintaining adequate reserves. His opinion is that he doesn't mind participating in different projects, but wants to be careful at what level the HRA is participating at and wants to make sure we are being good stewards of public funds. Commissioner Flansburg agreed with Commissioner Ludovissie and said she would want to treat all projects the same and does not feel it would be good to set a precedent. She said she is glad we're able to be involved in projects that addresses the City's housing goals. Plymouth Housing and Redevelopment Authority March 16, 2006 Page 4 Commissioner Ludovissie stated he appreciated Councilmember Willis's input. He said the Council's opinion is good because we need a check and balance system in place. Director Hurlburt said the TIF belongs to the new resources for affordable housing that otherwise would not be there. The $250,000 that MFHA is committing to the project and the $250,000 that the HRA is planning to use will come back. If we just give them 500,000 that money is gone and is a decrease in the resources we are going to have in the future. She said it may not be fair to place the entire responsibility of funding the 500,000 on Plymouth residents. In her opinion it makes more sense to create the TIF district and have the MHFA participate in this funding package. She also added that this way the project will pay back the funds and they will be available in the future. Commissioner Ludovissie asked about other council members and whether they supported the TIF application. Director Hurlburt said she has heard support from other council members. MOTION by Commissioner Flansburg, seconded by Chair Henderson, approving the Tax Increment Plan and related documents and further more recommend that the Plymouth City Council approve the creation of Tax Increment Finance (Qualified Housing) District 1-2. Vote. 3 Ayes. Motion approved. 4. ADJOURNMENT Meeting adjourned at 8:10 PM. HRA/Minutes 5/18/06