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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 10-19-2006MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY October 19, 2006 PRESENT: Vice Chair Tim Bildsoe, Commissioners Steve Ludovissie, and Jenny Flansburg ABSENT: Chair Susan Henderson and Commissioner Jim Kovach STAFF PRESENT: Housing Program Manager Jim Barnes, and Office Support Representative Janice Bergstrom OTHERS PRESENT: Jodi Boedigheimer and Kathy Youngquist 1. CALL TO ORDER Vice Chair Bildsoe called the Plymouth Housing and Redevelopment Authority meeting to order October 19, 2006 at 7:04 P.M. 2. CONSENT AGENDA A. Approve September 21, 2006 HRA Meeting Minutes B. Plymouth Towne Square. — Accept monthly housing reports. C. Vicksburg Crossing. Marketing Update MOTION by Commissioner Flansburg , seconded by Commissioner Ludovissie, approving the consent agenda. Vote. 3 Ayes. Motion approved. 3. PUBLIC HEARING 4. NEW BUSINESS A. Vicksburg Crossing. Consider Change Order #4 Housing Program Manager Barnes presented an overview of the October 9, 2006 staff report. Housing Program Manager Barnes noted that the addition of the retaining wall Change Order #12) became necessary due to the building location being moved 13 feet. This resulted in a redesign of the rear patio because of grading issues. Housing Program Manager Barnes said the proposed design is the most economical of the three options reviewed for the retaining wall. Housing Program Manager Barnes discussed the approved 8' x 15' wood sign with a masonry foundation (Change Order #22). He said this sign has a resort -type look to it. Plymouth Housing and Redevelopment Authority October 19, 2006 Page 2 Housing Program Manager Barnes said they have asked the architect to design something more consistent with the entire development. Commissioner Flansburg asked if there would be an address on the sign. Housing Program Manager Barnes stated the address, per fire code, would be on the Vicksburg Lane side of the building, so there would be no need to add this to the signage. Vice Chair Bildsoe asked what credit amount would be given for the sign. Housing Program Manager Barnes said the credit amount for the sign is $8,300. Vice Chair Bildsoe noted that with that improvement, we would be under budget by 4,800. Housing Program Manager Barnes said there is $113,784 in the project budget and this change order would almost bring them to the approved project budget amount. He noted that additional change orders are under negotiation, one with Frana for a time extension request, and Miller Hanson has submitted two requests for additional fees. Housing Program Manager Barnes pointed out that approximately $650,000 had been approved in previous change orders that were "upgrades" that enhanced the project. Commissioner Ludovissie asked for clarification on the Frana bid of $29,323 and the estimate. Housing Program Manager Barnes explained that Bill Wolters, our Owner's Representative, does not bid out the individual proposal requests but rather presents an estimate based on his information and industry standards. Commissioner Ludovissie commented that $32,000 for a masonry sign is not a lot of money. Vice Chair Bildsoe referenced Change Order #44 Sheetrock, and asked if negotiations had occurred on this item. Housing Program Manager Barnes said the original request from the contractor was 85,000. He said after viewing the site with the contractor and discussing the project, manpower and time involved, the bid was resubmitted for $42,000. Commissioner Ludovissie asked for clarification of Change Order #51. Housing Program Manager Barnes explained that the concrete approaches and handicap pavers at the front entrance sidewalks at the service drive area are a City requirement. Commissioner Flansburg asked about the time extension request and if there is a way to avoid that. She said she is concerned the Miller Hanson estimate may increase and asked for an estimate of the time extension cost. Plymouth Housing and Redevelopment Authority October 19, 2006 Page 3 Housing Program Manager Barnes responded the cost could range from $35,000 to 100,000. Commissioner Flansburg noted there is the potential of going over budget overall by 40,000 to $100,000. Vice Chair Bildsoe said his opinion is to not support the revised monument sign. He said the original sign is good and he doesn't want to spend an additional $21,000. Vice Chair Bildsoe said he wants to leave some money in reserve. Vice Chair Bildsoe said we have approved change orders that will enhance the quality of life for residents and will bring value to life, but we need to be careful with taxpayer dollars. Commissioner Flansburg said her concern is that the projections indicate possibly going over budget. She said she would prefer to keep at least $100,000 in reserves. She said she agreed with Vice Chair Bildsoe on keeping the original monument sign, and added that the sign could be replaced at a later time. She said the planter (Change Order #33) is not a big expense, but she wants to stay conservative. Commissioner Flansburg said people would recognize this is a new development, and the planter could be added at a later time. She said the windows (#48) and electrical outlets (#50) are necessities, and recommended deleting Items #22 and #33. Commissioner Ludovissie said it makes more sense to install the revised monument sign now than replacing it down the road. Commissioner Ludovissie said he feels the proposed monument sign is a nicer than the wood sign and given the amount of the project overall it is not a lot of money. Commissioner Ludovissie said the revised sign would be more compatible with existing signage at the center. He said he is concerned about taxpayer money as well, but the proposed sign makes sense now. Commissioner Ludovissie said the footings, etc. won't work if the sign is changed at a later date and added there would be more maintenance required for the wood sign. MOTION by Vice Chair Bildsoe, seconded by Commissioner Flansburg, to approve Change Order Request #4, deleting Proposal Requests #22 and #33. Commissioner Flansburg reiterated these two items can be revisited at a later time, especially the front planter. Vote. 2 Ayes. MOTION approved. Commissioner Ludovissie voted nay. B. Elim Care. Bond refund request for Cornerstone Commons Assisted Living in Plymouth Vice Chair Bildsoe introduced Kathy Youngquist, CFO - Elim Care. Housing Program Manager Barnes gave an overview of the October 4, 2006 staff report. Plymouth Housing and Redevelopment Authority October 19, 2006 Page 4 Ms. Youngquist said the 84 -unit assisted living is at full occupancy. She said they are happy with how the building turned out and are appreciative of the City's assistance. Ms. Youngquist said they are trying to enhance the future and keep rates down for residents and tenants. Vice Chair Bildsoe inquired about the residents at Cornerstone Commons Assisted Living. Ms. Youngquist responded that the residents are mostly elderly and some units are for memory care. She said there is a waiting list. MOTION by Commissioner Ludovissie, seconded by Commissioner Flansburg, to approve Resolution 2006-09 providing for the issuance and sale of a housing facilities refunding revenue note (Cornerstone Assisted Living of Plymouth, Inc. Project), Series 2006 and execution of related documentation. Vote. 3 Ayes. Motion approved. C. Plymouth Crossroads Station. Review and approve the Tax Increment Financing Plan and related documents for the proposed Tax Increment Financing Redevelopment District I-3 (Continued from the September 21, 2006 Meeting) Housing Program Manager Barnes gave an overview of the October 10, 2006 staff report. The Commissioners each expressed support for the project. Vice Chair Bildsoe thanked Housing Program Manager Barnes for bringing the issue back before them and detailing the additional information regarding costs and the need for assistance by the developer. MOTION by Commissioner Flansburg, seconded by Commissioner Ludovissie to approve Resolution 2006-07 adopting the tax increment financing plan for tax increment financing Redevelopment) District No. 1-3 and approving a development agreement and related documents and to recommend approval to the City Council. Vote. 3 Ayes. Motion approved. D. Vicksburg Crossing. Consider 2006 and 2007 Operating Budgets Housing Manager Barnes gave an overview of the October 11, 2006 staff report. Vice Chair Bildsoe introduced Jodi Boedigheimer, Grace Management. Ms. Boedigheimer said she anticipates 52 tenants moving in by mid-January, 2007. Ms. Boedigheimer said she is pleased with the numbers and hopes to keep the momentum going. She said she has ordered a 10' x 4' banner to be placed on the northeast corner indicating "Senior Rentals" and the phone number. Vice Chair Bildsoe asked if the occupancy percentage of 76% in the draft budget, can be achieved. He said that number is somewhat misleading because a portion would be the lower cost, affordable units. Plymouth Housing and Redevelopment Authority October 19, 2006 Page 5 Ms. Boedigheimer said 33 units are affordable, and there are still two units available. She said those will be occupied by mid-January and they have deposits for 21 market rate apartments. Ms. Boedigheimer stated this project is doing extremely well compared to other projects they have done, especially for this time of year. She anticipates keeping the momentum going with leasing and a holiday open house. Commissioner Ludovissie said the budget for expenses and income appeared to be conservative. Ms. Boedigheimer said the warranties which would become effective when the building is substantially completed, would cover repair expenses for the first year. Commissioner Ludovissie noted an error in Resolution 2006-12 where the year should be changed from 2006 to 2007. Commissioner Ludovissie asked if there is any interest in refunding the cash flow back to general fund a year after operations are complete. Housing Program Manager Barnes said that could be reviewed as an option. He said he had discussed with Finance Manager Larry Jacobson how they handled finances and accounts for Plymouth Town Square. Finance Manager Jacobson recalled that the HRA seeded the $50,000 and it was never returned. Housing Program Manager Barnes said reserves are transferred over to another account when they reach a higher amount. MOTION by Commissioner Ludovissie, seconded by Commissioner Flansburg, to adopt Resolution 2006-11 and Resolution 2006-12, with noted changes, for the 2006 and 2007 operating budget for Vicksburg Crossing. Vote. 3 Ayes. Motion approved. E. Plymouth Towne Square. Consider 2007 Operating Budget Jodi Boedigheimer reviewed the October 6, 2006 staff report. Commissioner Ludovissie referenced the rate increase of 3% and said it is important to stay up with inflation, which is a reality in life. Ms. Boedigheimer said this is in line with other city sponsored buildings. Vice Chair Bildsoe asked about occupancy and if there is a waiting list. Ms. Boedigheimer said the 2 -bedroom waiting list remains open. She said the 1 -bedroom wait list opened a year ago for approximately 4 months. Ms. Boedigheimer said they have approximately 100 people on the wait list which they continue to use to fill vacancies as they occur. Ms. Boedigheimer said it was a difficult winter with 16 units being turned over to new tenants. She said the high number of vacancies were a discussion point for staff to make changes to increase turn around times for unoccupied units. Ms. Boedigheimer said the overall budget reflects a 98% occupancy goal. She said based on Plymouth Housing and Redevelopment Authority October 19, 2006 Page 6 the last 5 months it is achievable as there has been steady occupancy. Ms. Boedigheimer noted that half of the people who move out result in a 2 -apartment turnover. She added that since 1999 carpet has been completely changed out in only 52 apartments, which is about half of the units. Commissioner Ludovissie asked the average age of the residents. Ms. Boedigheimer said they are in a lower age cycle right now with 79 as the average age. MOTION by Commissioner Flansburg, seconded by Commissioner Ludovissie, to adopt Resolution 2006-10 authorizing the 2007 operating budget for Plymouth Towne Square. Vote. 3 Ayes. Motion approved. F. Update on Habitat project. Housing Manager Barnes reviewed the October 12, 2006 staff report. He said the Planning Department has requested one modification to flop the building so the accessible unit would be to the south to better blend with future development. Commissioner Ludovissie asked if the building would be 3 or 4 units. Housing Program Manager Barnes stated it would be four units. Housing Program Manager Barnes said the plan would include one handicapped accessible unit requiring a couple variances. Commissioner Flansburg asked about square footage of the units. Housing Program Manager Barnes said the units would have approximately 1,700 square feet. He said they are geared for the moderate work force, entry level housing. Commissioner Flansburg said she was pleased with that size, as a lot of condos and flats in the City (of Minneapolis) are being advertised as 900 — 1,100 square feet. 5. ADJOURNMENT Meeting adjourned at 8:10 PM. HRA/Minutes 10/19/06 JB