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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 10-23-2008MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY October 23, 2008 PRESENT: Chairman Steve Ludovissie, Commissioners Jeff Kulaszewicz, Paul Caryotakis and Bob Stein ABSENT: Commissioner Penny Hatcher STAFF PRESENT: Housing Program Manager Jim Barnes, Executive Director Steve Juetten and Office Support Representative Chele Kovacevick OTHERS PRESENT: Grace Management Representative Jody Boedigheimer and Vicksburg Crossing Managing Director Sara Paquette 1. CALL TO ORDER Chairman Ludovissie called the Plymouth Housing and Redevelopment Authority meeting to order at 7:04 P.M. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from September 25, 2008. Commissioner Kulaszewicz requested that the language in the September 25, 2008 minutes, item 4B, be amended to read "Commissioner Kulaszewicz asked if the cost of these employees is similar to the market value of comparable employees in other parts of the city." B. Plymouth Towne Square. Accept monthly housing reports. C. Vicksburg Crossing. Accept monthly housing reports. Commissioner Kulaszewicz remarked that in the Vicksburg Crossing Monthly Report for September, 2008 there was a mathematical error. Under the heading "Rentals", the number of vacant units was stated as "20 with deposits on seven of those units leaving a balance of 15 apartments available for rent." The correct number should have been 13, including the model unit, rather than 15. Also, the bank deposit number in that report reflected a $1,000 discrepancy in tenant deposits, which Grace Management will clarify and respond to Housing Program Manager Barnes. Motion by Commissioner Kulaszewicz, seconded by Commissioner Caryotakis to approve the Consent Agenda, with the amended minutes. Vote. 5 Ayes. MOTION approved unanimously. Plymouth Housing and Redevelopment Authority October 23, 2008 Page 2 3. NEW BUSINESS A. Vicksburg Crossing. Marketing report. Housing Program Manager Barnes introduced Sara Paquette as the new Managing Director at Vicksburg Crossing. Managing Director Paquette remarked that the attitudes and the environment at the building have improved since her arrival. Commissioner Ludovissie noted that current residents might be a very powerful referral network for future lease -ups. Grace Management Representative Boedigheimer stated that open houses have generated visits from friends of current tenants and marketing efforts have seen an uptick in activity around the property. There have been more deposits made on a per visit basis than in the past. Thirty site visits netted a total of five deposits; a big improvement over past periods. This time of year with winter approaching may also be playing into the dynamics of the increased activity at the property. Housing Program Manager Barnes asked if we have been tracking where referrals are being generated from. Managing Director Pacquette replied affirmatively. The biggest percentage of inquiries has been generated by seniors who have family members living close to the property. Some prospects have come from a mixed family building and want to live in a quieter atmosphere. Others are looking to reduce their expenses by moving from a more expensive building. Chairman Ludovissie asked if handrails are installed at Plymouth Towne Square. Grace Management Representative Boedigheimer responded yes, there are handrails at the site. He wondered if the presence of handrails presents a more institutional image. Ms. Boedigheimer stated the existing handrails at Plymouth Towne Square do not seem to be very visible, but still are a needed feature. Grace Management Representative Boedigheimer remarked that the age of the residents range from 55-93. Housing Program Manager Barnes wondered why some people have the perception that these are subsidized units. Managing Director Pacquette said that when they inquire about apartments they could be confusing affordable housing with subsidized housing. Grace Management Representative Boedigheimer said they have been tracking the source of inquiries, many of which are drive-bys. Grace Management Representative Boedigheimer stated that an open house last weekend generated 15 tours of the building. November 12th is the 55 Alive function in conjunction with AAA, who is offering the refresher driving course at the building. There may be a give-away of a AAA membership among those who participate in the course. There is a resident holiday party scheduled for December 8th followed by a light tour for the residents. Commissioner Stein asked if any of the deposits represent prospects that still need to sell a home in order to lease -up. Grace Representative Boedigheimer stated that there are two which still need to sell a home. Currently, there are 77 occupied units and three deposits of which one is fairly sure she will move in on November 1 st. There is one move out scheduled in December. B. Vicksburg Crossing. Review 2009 Budget Housing Program Manager Barnes stated that we are at the three year point with this project and anticipating that 79 or 80 units will be occupied by January 1, 2009. Revenues are based on Plymouth Housing and Redevelopment Authority October 23, 2008 Page 3 increasing occupancy to 99% by December 2009 with income also coming in from garage rental and investment income. All remaining bond funds will be expended soon. He also stated that staff is recommending an increases to rents for both affordable and market rate units. Chairman Ludovissie asked if we are close enough to full occupancy in order to reach for higher rents. Housing Program Manager Barnes replied affirmatively. Grace Management Boedigheimer stated that there will be an increase of 5.8% in Social Security benefits. Small increases in rents on an annual basis, per Housing Manager Barnes, would seem to be the best approach. Commissioner Kulaszewicz asked what the percentage increase would be if rents were raised immediately to the maximum allowed for the affordable units with one large adjustment. Grace Management Boedigheimer said that this would have a negative impact on leasing activity. It took over 20 applicants on our waitlist to lease a recent affordable unit. Housing Program Manager Barnes said that this project was developed knowing that these units would be more expensive than Plymouth Towne Square and that we would do our best to keep rents as low as possible starting at $675 per month. It is being recommended that $40,000 from the levy and $100,000 from the Tax Increment Fund TIF) be used to cover any shortfalls in the near future. Commissioner Caryotakis asked if TIF money is collected currently, or will it be assessed in the future. Housing Program Manager Barnes explained the role of a TIF and how the money is captured once a new project is put into place. Commissioner Stein asked what that dollar amount is. Housing Program Manager Barnes said that based on an analysis by Ehlers and associates there would be approximately $300,000 per year would be available for the first three years and then it would be reduced to approximately $160,000 for the remaining life of the TIF districts. Commissioner Stein asked where TIF District 7-6 is located. Housing Program Manager Barnes responded that it is located along Highway 494 with Unitron and Enpath as tenants. Housing Program Manager Barnes will send the TIF information on both districts to the board members. Commissioner Kulaszewiez asked if a goal of 90% occupancy by 2009 year-end was achievable. Grace Management Boedigheimer indicated that it was aggressive. She felt it was better to be more aggressive in setting this goal as it is important to get the building fully leased. Commissioner Kulaszewicz also asked if a shortfall was originally anticipated. Housing Program Manager Barnes responded that it was not. The goal was to break even but currently there is an accumulated shortfall which has occurred over the past three years. The increase in utilities, slow lease -ups, and the general real estate market slow down have all impacted the project. Commissioner Kulaszewicz asked if the year ending 2010 is also projected to have a short -fall. Housing Program Manager Barnes indicated affirmatively and referred to the provided spreadsheet. The anticipation is that by 2014 the property account balance will increase to the point that no outside monies will be needed. Commissioner Stein asked why the spreadsheet still shows subsidies in place past 2014. Executive Director Juetten responded that the subsidies will continue to be available but the anticipation is that account balances will cover expenses so those monies may not be needed. Commission Stein asked if capital replacement reserves are factored into these assumptions as well. Executive Director Juetten responded affirmatively. According to Grace Management Representative Boedigheimer all the manufacturer appliance warranties have expired since the initial install and we may see an increase in repair expenses as time goes on. She stated that the on-site maintenance person has been making repairs to keep costs down and has also kept some broken units on site for spare parts. Plymouth Housing and Redevelopment Authority October 23, 2008 Page 4 Commissioner Stein asked if TIF funds have to be remitted to the County and then sent back to the City level. Housing Program Manager Barnes responded affirmatively, the statute requires TIF funds to filter through the County for redistribution. Housing Program Manager Barnes stated that handrails have been requested by residents to be installed in common areas on all four floors. About $8,000 was the most recent bid submitted to accomplish this installation. Commissioner Kulaszewicz asked for clarification on what was considered a common area. Housing Program Manager Barnes responded with a clarification. Commissioner Stein asked what the handrails would look like. Housing Program Manager Barnes described them as pine stained to match existing interior finishes. Maple and vinyl products were also considered but would be more expensive options. Grace Management Boedigheimer stated that Vinyl is priced at about $20 per linear foot and maple is close to 13,000 for the four floors. More bids can be obtained if the Board is interested in pursuing this further. Chairman Ludovissie remarked that he would not recommend cutting corners on such a visible part of the building. Commissioner Kulaszewicz recommended not spending any more money on handrails unless it is a safety issue or an amenity which adds real value. Housing Program Manager Barnes said that the residents are requesting this improvement because they feel more secure with railings in place and are anticipating their needs changing over time. Commissioner Stein said that a 99% occupancy rate is very optimistic in this market. Chairman Ludovissie agrees it is optimistic but would prefer to have something to shoot for and that monies should not be spent in anticipation of the 99% occupancy number. Commissioner Stein did not care for the pine alternative because of aesthetic and maintenance issues. The Board decided not to install handrails at this point. Housing Program Manager Barnes stated that staff is requesting a transfer of funds from Plymouth Towne Square to Vicksburg Crossing. A working capital account is no longer needed for Plymouth Towne Square and those monies should go into the Vicksburg Crossing debt sinking fund. MOTION by Commissioner Caryotakis, seconded by Commissioner Kulaszewicz to adopt the Vicksburg Crossing 2009 Budget. Vote. 5 Ayes. MOTION approved unanimously. C. Plymouth Towne Square. Review 2009 Budget. Housing Program Manager Barnes explained that the same process was followed as with the other budget in working with Grace Management and city staff. An increase of resident rental rates reduced the subsidy amount by approximately $15,000 or about 1% for the year. Expenses for capital improvements included: a water softener system; repair of landscaping damage that had occurred in the past three years; and, generator repairs. Housing Programs Manager Barnes also indicated that CO detectors will need to be added in both properties at a cost of about $3,500 for each of the two buildings. Dual smoke/CO detectors were also looked at but they are very expensive. The plug in units, versus hardwired units, is recommended as the most economical product to install. Chairman Ludovissie asked if the smoke detectors should be replaced at Plymouth Towne Square. Grace Management Representative Boedigheimer stated that we Plymouth Housing and Redevelopment Authority October 23, 2008 Page 5 replace them on an ongoing basis when we inspect the building and determine they need to be replaced. Housing Program Manager Barnes stated that Grace Management is asking for an increase in their management fees of 3.3% or $4,800 per year. Commissioner Kulaszewicz asked if the contract would be a one or five year contract. Grace Management Representative Boedigheimer said that could be looked into but they are not seeking a five year agreement. Grace Management did not ask for an increase in previous years although their expenses have increased. Chairman Ludovissie said that an annual renewal is a good tool for reviewing performance and that the nature of organizations also changes and that an annual review would permit flexibility by all parties. The Board decided to accept a one-year contract. MOTION by Chairman Ludovossie, seconded by Commissioner Caryotakis, to approve the Plymouth Towne Square 2009 Budget. Vote. 5 Ayes. MOTION approved unanimously. Commissioner Stein shared a map which shows the Tree House property which was acquired by the City of Plymouth for $212,000 (including road work). He recommended that the discussion of further development at that site proceed through the City Council. A clear definition of the goals of the HRA would need to be reviewed in putting together a strategic plan for any additional projects for that site. 4. ADJOURNMENT MOTION made by Chairman Ludovissie to adjourn. The meeting was adjourned at 8:20 p.m.