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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 05-29-2008MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY May 29, 2008 PRESENT: Chairman Steve Ludovissie, Commissioners Paul Caryotakis, Penny Hatcher, Jeff Kulaszewicz, and Bob Stein ABSENT: STAFF PRESENT: Community Development Director Steve Juetten, Housing Program Manager Jim Barnes, HRA Specialist Patty Schaffer and Office Support Representative Chele Kovacevick OTHERS PRESENT: Grace Management Representative Jody Boedigheimer and Osseo High School student Anna Mbali 1. CALL TO ORDER Chairman Ludovissie called the Plymouth Housing and Redevelopment Authority meeting to order at 6:10 P.M. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from April 24, 2008. B. Plymouth Towne Square. Accept monthly housing reports. C. Vicksburg Crossing. Accept monthly housing reports. MOTION was made by Commissioner Kulaszewicz, seconded by Commissioner Hatcher to approve the consent agenda. Vote. 5 Ayes. MOTION approved unanimously. 3. NEW BUSINESS A. Vicksburg Crossing. Marketing update. According to Grace Management Representative Boedigheimer there was a slight drop in phone and in-person inquires. In the 55 PLUS magazine, due out in June, there is a link to Senior Housing net. The insertion rate for a half page advertisement is $315 per month and will run for three months. Vicksburg Crossing staff member Jennifer Monahan has elected not to return to the property after her leave of absence. Grace Management will be looking to replace her within five weeks, approximately July 1, 2008. Out of all the units, 73 are occupied, 21 are unoccupied and out of the remaining vacant units, six have deposits, out of which two have firm move in dates. Grace Management Representative Boedigheimer stated that the model home unit was a good investment. The Top Hat event will be the June event at the site and in August they will host a group for National Night Out. Plymouth Housing and Redevelopment Authority May 29, 2008 Page 2 Housing Program Manager Barnes asked to get copies of the 55 PLUS magazine with the Vicksburg insertion. Grace Management Representative Boedigheimer remarked that this is such an unusual market and she has lost three potential tenants because their houses failed to sell. Commissioner Hatcher asked if Grace Management had considered doing any advertising through local churches. Grace Management Representative Boedigheimer replied not as of yet, but they will investigate that option. Next month's meeting will be held on site at Vicksburg Crossing. The format is to be available for a question and answer period of about one-half hour with the residents before the regular meeting commences. Commissioner Ludovissie inquired if there were any current or reoccurring issues that the Board should be aware of. Grace Management Representative Boedigheimer stated that the reoccurring issues are concerns about the windows and the showers. The windows are of particular concern to the residents who find them heavy to operate and tend to leak during a driving rainstorm. Grace Management has yet to hear back from the contractor who installed the windows with response to their needs. Short- term efforts to improve the sliding motion have not really been productive in the long-term. Commissioner Ludovissie offered to look at a problem window to see if he had some suggestions on how to make them more user-friendly. Commission Stein asked to receive a list submitted prior to that meeting with frequently asked questions and relevant background information from Grace Management. B. Executive Director. Appoint Steve Juetten, Community Development Director as the HRA Executive Director. No discussion. Motion by Commissioner Caryotakis, seconded by Commissioner Hatcher to appoint Community Development Director Steve Juetten as the HRA Executive Director. Vote: 5 Ayes. Motion passed. C. HRA Strategic Plan. Review current Strategic Plan and begin discussing updates. Housing Program Manager Barnes gathered information from neighboring HRA's and from the city-wide survey. Commissioner Ludovissie suggested the discussion begin by responding to policy questions posed to the City Council. When should the HRA establish TIF districts? When should the City? Currently there are seven active districts, three within Development District number seven and four that have been established by the HRA in Redevelopment District number one over which the City Council has approval power but the HRA has some powers which do not require City Council sanction. Housing specific and redevelopment activities have been the HRA's jurisdiction so far as recommended by our attorney. The City Council is notified as consideration is given by HRA to create any new TIF districts. Commissioner Ludovissie stated that usually a developer approaches the HRA versus the HRA approaching a developer. Commissioner Caryotakis inquired whether the City would ever develop priorities and incentivize the project in order to generate developer interest. Commissioner Stein mentioned that the City Council plays a large role in the support of TIF districts and that the attitude of the City Council can be divided based on the nature of the specific project. Executive Director Plymouth Housing and Redevelopment Authority May 29, 2008 Page 3 Juetten stated that the current developer for Plymouth Station is looking for a business partner and must have the project completed by the end of this year. He stated that the intent of TIF is not to prop -up a poor project, but to provide real value to the city. Should more TIF districts be established to meet certain needs and goals? Commissioner Kulaszewicz said that he believes the way TIF districts were established in the past seems to have been effective. Commissioner Caryotakis would like to see TIF used in cases where an integral part of the project cannot be funded in other ways. Chairman Ludovissie inquired whether there is a project "size" that the City should be working within. Housing Program Manager Barnes stated that the value of the projects vary so much that a pre-set size policy may not be in the Board's best interest. Commissioner Kulaszewicz asked if the City receives regular inquiries from businesses wishing to relocate if TIF funding were to be available. Housing Manager Barnes replied yes, perhaps two or three inquiries per quarter. The City's role has historically been reactive more than proactive in enticing business relocation. Executive Director Juetten stated that the Met Council prescribes affordable housing goals for the City. Commission Caryotakis inquired whether the changing economic and demographics have an impact upon the HRA goals. Executive Director Juetten stated that working to meet the needs of our city as well as the affordable housing goals of Met Council is the goal. Commissioner Stein stated that the goal of 1,045 units may not be achievable and the City cannot be penalized if they are unable to meet that goal, but the city is required to make that goal part of our stated plan. By in large, the City has been out -performing other similar -sized communities. Commission Caryotakis asked if there are any areas specifically identified for redevelopment in the comprehensive plan. Housing Program Manager Barnes replied yes, but the city typically prefers to have these projects be initiated by developers who have an interest in those projects rather than soliciting them for proposals. Should the City use tax -abatement as a tool? A brief definition of tax abatement was provided by Housing Program Manager Barnes. Chairman Ludovissie stated that a city such as Plymouth with a strong economic base does not really need to use tax abatement as a tool to induce interest. Should the HRA or City look into land banking? Chairman Ludovissie stated that land banking may be a good tool since there is still so much undeveloped land currently in the city. He would recommend it not be done as a speculative approach but as a good long-term investment. Housing Program Manager Barnes stated there is still a good portion of our green spaces already held by developers and the current down -turn in real estate prices may not necessarily be reflected in the price of land which would be appropriate for a land bank acquisition. It may be a good time to purchase, but there must be a defined plan in place first. The role of the HRA Board must be established first based upon the anticipated needs in the next ten years, for example affordable housing and senior housing. A determination would need to be made whether the HRA should acquire land at current prices in order to provide affordable parcels to developers in the future. Commission Kulaszewicz asked if we have the ability to partner with other not-for-profit entities (i.e., Commonbond). Chairman Ludovissie stated that a purchase would probably be a low-risk investment if it were bought right Plymouth Housing and Redevelopment Authority May 29, 2008 Page 4 and would provide opportunities in the future, and have the flexibility for self -development or out -right sale. Housing Program Manager Barnes said that City Council approval would most likely need to be sought at this high level of investment. Commission Hatcher inquired about the actual availability of suitable land given that much of the undeveloped land in the city is classified as wetland. Housing Program Manager Barnes replied that approx. 2,000 acres still remain undeveloped. Commission Stein stated that the City Council has discussed land banking as a tool but, there is some concern on the part of tax -payers that it may increase their taxes. Should HRA or City start focusing more on economic development? In the past, the City and HRA have not had to be proactive on the economic development front. Housing Program Manager Barnes mentioned that the economic development revolving loan fund has been available to entice businesses, but there has not been any interest in utilizing this fund. The fund is geared more towards smaller businesses because of the relatively low fund balance, although it may be appropriate for older warehouse/industrial properties for use in updating aging structures. The loans are written at 200 basis points below the borrower's current loan rate. The Board agreed that they should continue along the same path in regards to economic development. Should HRA or City focus more on re -development? Executive Director Juetten mentioned City Center, the State Farm building, the area around the Twin Towers, the south west corner 55 & 494, the SE corner of 55 and Vicksburg all as possible redevelopment areas. Chairman Ludovissie inquired as to whether we are waiting until we are approached by a developer. The United Properties exploration has been the closest thing to involvement that the HRA and City Council has experienced in the recent past. As a vision for a downtown area, the over-all goal is to create a walkable gathering place that is more vibrant than the current City Center. The Board agreed they should continue to investigate redevelopment opportunities as they are brought forth by developers. Are current staffing and administrative charges okay? Housing Program Manager Barnes stated that the HRA pays for overhead and administrative costs that it receives from other city departments such as Finance, IT, HR, etc. The goal of the recent staff report was to identify allocation of staff costs. Executive Director Juetten stated that if we want to be proactive in items 1-6, extra staffing may be required but as we feel our role is sufficient, current staffing levels are appropriate. What should TIHAP be used for and should it be continued, reduced or expanded? Housing Program Manager Barnes stated that the city has TIF funding available through the TIHAP program and this funding source would be available to meet future needs for example, land -banking. This source has been used for Stone Creek Village and is also pledged to Vicksburg Crossing. In the past, decisions to include pooled housing funds in TIF districts have been handled on a case-by-case basis. Plymouth Housing and Redevelopment Authority May 29, 2008 Page 5 Should HRA's tax levy be reduced, expanded or remain the same? Chairman Ludovissie stated he is not a fan of using a levy simply because it is available and that he believes only a project with real merit should be considered. Housing Program Manager Barnes reported that currently 15-20% of the levy supports salaries in the Community Development Department and the majority of the levy is used to assist Plymouth Towne Square and Vicksburg Crossing. Chairman Ludovissie asked if the city was funding these positions prior to the levy. Staff did not have an answer to this question and stated they would do some research. Commission Kulaszewicz stated that in his opinion an increase of levy would not be prudent in the current economic climate. Should the HRA or City take on additional housing initiatives? Chairman Ludovissie remarked that we have a very comprehensive plan compared to other comparable cities. Housing Program Manager Barnes stated that two things which have been very successful in other communities are the land trust model and interest rate write-down rehabilitation programs. Commissioner Caryotakis remarked that some of the elderly population has a need to improve their homes in order to stay in them or to put them on the market. Commission Hatcher asked whether the income limit has been adjusted in our current rehabilitation program to make the program more attractive. According to Housing Program Manager Barnes, the limit was raised to 80% of median income and this change has prompted more interest in the program. Commissioner Stein suggested spending $5,000 of that budget in order to build awareness of the program's availability. HRA Specialist Schaffer said her experience has shown that with the elderly population, participation in the program has been discouraged by their family members. Commission Caryotakis relayed his knowledge of another funding program where real estate market stimulus was created when financial support was provided to seniors to make necessary repairs to their homes so they could sell them. They then would rent or by a unit in a senior development within the community. Commissioner Caryotakis asked if there is an identified area, with some concentration, which would be appropriate for redevelopment. Community Development Director Juetten stated that we do not have any concentrated areas that are blighted, however, the City has identified a number of areas in the Comprehensive Plan that they would like to see redeveloped. Does the City Council have a preference on who serves as Executive Director? Already acted upon with the appointment of Community Development Director Steve Juetten. Other concerns? Commission Ludovissie asked whether we should explore City regulations, fees and park dedication fees in relation to the development process, as they may have a chilling effect on market rate and affordable housing development. Housing Program Manager Barnes said a report was done to explore regulatory incentives which the City controls, with copies having been distributed to the Planning Commission, City Council and the HRA. The topic remains to be re -visited. Concern for replacement of park dedication fees would have to be addressed as these are the sole source of funding for the parks. Chairman Ludovissie remarked that we actually create our own destiny in terms of the decisions we make in allocating our resources and what we see as our priorities. Executive Director Juetten stated that customer service is a huge Plymouth Housing and Redevelopment Authority May 29, 2008 Page 6 priority to help people get their projects off the ground and making money as soon as possible. Commissioner Ludovissie questioned whether the "status quo" is considered good enough or do we fine tune our efforts further. Commissioner Stein believes that housing should be a major goal of the HRA. Commission Caryotakis asked how often joint City Council and HRA meetings have been conducted. Housing Program Manager Barnes responded that this will be the first since 2003. Chairman Ludovissie asked if there is any way we need to further prepare for the study session. Housing Program Manager Barnes said he plans to summarize today's discussion of the above items for the City Council. Housing Program Manager Barnes encouraged the Board members to attend the City Council Study Session if possible. D. City Council Work Study Session. Discuss HRA Strategic Plan. HRA members are invited to attend the City Council's Study Session. 4. ADJOURNMENT Motion to adjourn by Commissioner Caryotakis, seconded by Commissioner Kulaszewicz. The meeting was adjourned at 8:35 p.m.