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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 10-18-2007MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY October 18, 2007 PRESENT: Chairman Steve Ludovissie, Jeff Kulaszewicz, Jim Kovach and Jenny Flansburg ABSENT: Commissioner Bob Stein STAFF PRESENT: Housing Program Manager Jim Barnes, and Office Support Representative Barb Peterson OTHERS PRESENT: Grace Management Representative Boedigheimer 1. CALL TO ORDER Chair Ludovissie called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 P.M. 2. CONSENT AGENDA A. Approve September 20, 2007 HRA Meeting Minutes B. Plymouth Towne Square. Accept monthly housing reports. C. Vicksburg Crossing. Accept monthly housing reports. Commissioner Ludovissie requested that Item 2A be removed from the consent agenda and be placed as Item 3C. Commissioner Kulaszewicz requested that Item 2C be removed from the consent agenda and be placed as Item 31). MOTION by Commissioner Kovach, seconded by Commissioner Kulaszewicz, to approve 2B on the consent agenda. Vote. 4 Ayes. MOTION approved unanimously. 3. NEW BUSINESS A. Vicksburg Crossing. 2008 Operating Budget Housing Program Manager Barnes presented an overview of the staff report. He said overall revenues are based on 96% occupancy by the end of 2008 and additional fees will be gained through garage rentals, application fees and investment income for the building. He said they are projecting revenues for 2008 to be $995,027, which represents an 18% increase over 2007 revenue. Housing Program Manager Barnes said staff is not recommending raising rents for the upcoming year. Commissioner Ludovissie asked if rents could be raised during 2008. Housing Program Plymouth Housing and Redevelopment Authority October 18, 2007 Page 2 Manager Barnes said rents could be raised at any time. They would become effective when tenants sign new leases or renew an existing lease. Housing Program Manager Barnes said that on the expenditure side of the budget staff is expecting an increase of approximately $21,000 over the 2007 budget. He said this increase is primarily due to the addition of a new staff position which will be split between Plymouth Towne Square and Vicksburg Crossing. Housing Program Manager Barnes stated that the projected budget shortfall will be $60,000 for 2008. He explained the options which the Board can use to address this short fall. He said that Commissioner Stein indicated he would prefer to reduce the replacement reserve contribution by 60,000 (option #1 in the staff report). Commissioner Kulaszewicz said he didn't think the part-time person had been approved yet. Housing Program Manager Barnes said that staff is asking for approval through the budget adoption. He asked for clarification of job duties that the part-time person would do. Grace Management Representative Boedigheimer said the other buildings managed by Grace Management are market rate and are staffed at a higher level. She said most have reception coverage 24 hours a day. She said the other buildings have a more extensive scheduled activity program as opposed to Vicksburg Crossing or Plymouth Towne Square, where the residents plan a lot of their own activities. Housing Program Manager Barnes explained the staffing levels at Plymouth Towne Square over the past few years. He said 4-5 years ago there was a three quarter -time person at Plymouth Towne Square and now that the population has doubled between the two buildings there is a need for this again. The residents at Vicksburg Crossing have a higher expectation for amenities because it is a market rate building. Commissioner Ludovissie said he wasn't expecting that a permanent person would be hired. He felt a temporary person who could help during the leasing process was needed. Grace Management Representative Boedigheimer said that leasing is an ongoing need. Commissioner Ludovissie said he feels that leasing would be the first priority for this person. Commissioner Flansburg feels that if people are happy at the building they will stay longer so feels that it is important to provide activity services as well as lease -up services. Housing Program Manager Barnes said the new employee will free up the manager so she can focus on marketing the building. Commissioner Ludovissie inquired as to where the activities come into play. Housing Program Manager Barnes said in the beginning the person will be focused on marketing but also begin to plan activities so when prospective residents come to look at the building there will be an full activity calendar to show them. He said some activities can be shared between Plymouth Towne Square and Vicksburg Crossing. Commissioner Ludovissie asked if the same person would be able to meet the needs for both leasing and activities. Commissioner Ludovissie voiced concern about increasing expenses. Commissioner Flansburg spoke about leasing challenges and wondered if it would be possible to bring a person in to cover for the manager while she is marketing the building. Plymouth Housing and Redevelopment Authority October 18, 2007 Page 3 Commissioner Ludovissie inquired about hiring an outside consultant to tell us exactly what the need is at Vicksburg Crossing. He inquired how the staffing works during a typical day and how the properties are being operated at this time. Grace Management Representative Boedigheimer said there is one full-time person per building at this time. Housing Program Manager Barnes said they each manage their own building and each has different skill sets. Commissioner Flansburg asked if that was a normal number for staffing the buildings. Grace Management Representative Boedigheimer explained how they visited other buildings when they took over managing Plymouth Towne Square to look at staffing hours and it was decided at that time to cut the staff hours. She feels it has worked well for Plymouth Towne Square. However, with the increase in units with Vicksburg Crossing there is a need to increase the staff. Commissioner Ludovissie said we are relying on Grace Management to lease up the building. He wants to make sure we do whatever it takes to get the building leased and not wait until the market turns around. Commissioner Flansburg feels we are putting ourselves at a disadvantage right now since our staffing levels do not compare to other buildings. She feels that we need to get the part-time person hired. Commissioner Kulaszewicz said we are paying a fee to the management company and is wondering if there are leasing agents which could be hired for a commission. Housing Program Manager Barnes said he had talked with for-profit developers to get names of agents that do leasing only, but when he contacted them they were no longer in the business. Grace Management Representative Boedigheimer said that at their other buildings they have full-time marketing people who do the leasing, which is very typical of senior buildings. Grace Management Representative Boedigheimer said there was a large wait list prior to opening the building, but the majority of those people wanted subsidized housing. Commissioner Ludovissie feels the occupancy numbers are too aggressive for next year. He also feels that utilities are figured too light. Commissioner Kovach asked if all utility companies are contacted to see what the increases will be. Housing Program Manager Barnes said they were. Housing Program Manager Barnes said staff's suggestion would be to fund the deficit by reducing the contribution to the replacement reserve fund. Commissioner Ludovissie agreed. Commissioner Ludovissie pointed out that this is not the same property tax arrangement as Plymouth Towne Square. Commissioner Ludovissie reiterated that he is still concerned that the lease -up projections are too optimistic coupled with home sales and people who are not moving right now. Commissioner Kulaszewicz said that maybe it would make sense to raise the rents now. Discussion took place regarding raising rents. Commissioner Ludovissie does not feel this is a good time to raise rents. Housing Program Manager Barnes said we could revisit this issue in June. Commissioner Ludovissie feels it's important for Grace Management to be aggressive and they should be proactive in marketing efforts. MOTION by Commissioner Kulaszewicz, seconded by Commissioner Kovach, approving the 2008 budget for Vicksburg Crossing. Vote. 4 Ayes. MOTION approved unanimously. Plymouth Housing and Redevelopment Authority October 18, 2007 Page 4 Commissioner Ludovissie asked to review this budget in April. He is concerned that we don't overlook something that we can catch regarding expenses before the year is over. Commissioner Ludovissie asked if Grace Management is paid a flat fee or if their salary is based on revenue. Grace Management Representative Boedigheimer said they are paid on a flat fee basis. It was agreed that the budget will be discussed in April. MOTION by Commissioner Flansburg, seconded by Commissioner Kovach recommending that the replacement reserve be used to fund the budget deficit. Vote. 4 Ayes. MOTION approved unanimously. B. Plymouth Towne Square. 2008 Operating Budget Housing Program Manager Barnes gave an overview of the staff report. He said he would like to discuss the beauty shop as the present operator has informed us that she can no longer afford to pay rent because there is not enough business generated by the residents. Housing Program Manager Barnes said he asked her about other buildings she has worked at in the past and she said they don't charge her any rent for the space. She would like to stay on for one day a week but cannot afford to make the rent payment. Commissioner Kulaszewicz asked if she charges a discounted rate. Housing Program Manager Barnes said she does have lower rates for residents. Commissioner Kulaszewicz asked if we offer this service as an amenity in the building. Discussion occurred regarding the beauty shop. Grace Management Representative Boedigheimer would recommend closing the shop rather than trying to find another operator. Commissioner Flansburg asked what other use the room would have. Commissioner Ludovissie said he feels she should pay something towards rent. Housing Program Manager Barnes said she would probably not stay if she has to pay any amount for rent. Commissioner Ludovissie is worried that eliminating the rent would set precedence. Commissioner Flansburg is concerned that not having her would make the residents unhappy. MOTION by Commissioner Flansburg, seconded by Commissioner Kovach, to let the operator of the beauty shop remain on a month to month basis at no charge for the space with the stipulation that it is only until a new operator is found and direct Grace Management to begin looking for a replacement. Vote. 4 Ayes. MOTION approved unanimously. MOTION by Commissioner Flansburg, seconded by Commissioner Kulaszewicz, approving the2008 budget for Plymouth Towne Square. Vote. 4 Ayes. MOTION approved unanimously. 3C. Approve HRA Meeting Minutes from September 20, 2007. Commissioner Ludovissie has a concern about the wording regarding the Met Council. He also questioned what he had said regarding how the Section 8 program works at Vicksburg Crossing. Plymouth Housing and Redevelopment Authority October 18, 2007 Page 5 MOTION by Commissioner Flansburg, seconded by Commissioner Kulaszewicz to table the minutes until the next meeting. Vote. 4 Ayes. Motion approved unanimously. 3D. Vicksburg Crossing. Accept monthly housing reports. Commissioner Kulaszewicz inquired about the marketing at Vicksburg Crossing. He asked if there was a conclusion drawn after looking at the other properties listed in the report. Commissioner Ludovissie said the Board was directed to bring back comparisons of other properties and asked why the apartments listed in the report were selected as comparisons. Grace Management Representative Boedigheimer said they were taken from the Maxfield Research Report that was done before the building was built. The three listed are new buildings in the Twin City area. She said the Comparative Study handout is focused more on local buildings. Commissioner Kovach does not feel they provide a clear comparison. Commissioner Kulaszewicz said we were trying to find out if we are offering the right type of amenities and how we rank with price. Commissioner Ludovissie feels the buildings in the newsletter should be added to the comparative study and that Grace Management should do a more thorough comparison study. Housing Program Manager Barnes said it would be good to find out what activities are happening at other buildings. Commissioner Ludovissie said he felt it would be worth the money to have a consultant come in and tell us what to do. Grace Management Representative Boedigheimer said that would cost between $2,000 - $3,000. Commissioner Ludovissie suggested beginning with Grace Management and having them put together recommendations. Grace Management Representative Boedigheimer affirmed that Grace Management could put a report together. Commissioner Kulaszewicz asked if we could survey the current residents to see what they want in the line of activities. Housing Program Manager Barnes said they will be doing a resident survey and that staff had a meeting with three residents this week. These three residents want to start a Resident Council. Commissioner Kulaszewicz asked about the unit that could be turned into a community room. Commissioner Kovach asked about other uses for the room. The Commissioners requested a separate leasing and marketing report for Vicksburg Crossing each month which will be under New Business. The financials and newsletter will remain in the Consent Agenda. 5. ADJOURNMENT The meeting was adjourned at 9:05 P.M.