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
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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.
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March 16, 2006
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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.
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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