HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 09-22-2022APPROVED MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
September 22, 2022
MEMBERS PRESENT: Acting-Chair James Williams, Commissioners Lucas Larson,
Aqueelah Whitfield, Wayne Peterson, and Ronald Kelner
ABSENT: Michelle Soderberg and Joel Spoonheim
STAFF PRESENT: Community and Economic Development Director Danette Parr,
Housing and Economic Development Manager Devon Pohlman, Support Services
Manager Denise Whalen, Housing and Economic Development Coordinator Kenny
Niemeyer, Permit Technicians Michelle Bast and Jenny M. Bailey
OTHERS PRESENT: Mayor Jeff Wosje, Councilmember Jim Davis
1. CALL TO ORDER
Acting Chair Williams called the Plymouth Housing and Redevelopment Authority
meeting to order at 7:05 p.m.
2. PUBLIC FORUM
Acting Chair Williams opened and closed the Public Forum as there was no one present to
speak.
3. APPROVE AGENDA
MOTION by Commissioner Kelner, seconded by Commissioner Peterson to approve the
Agenda. Vote. 5 Ayes. MOTION passed unanimously.
4. CONSENT AGENDA
4.1. Approve proposed minutes from August 25, 2022.
MOTION by Commissioner Peterson, seconded by Commissioner Kelner, to approve
the Consent Agenda. Vote. 5 Ayes. MOTION passed unanimously.
5. PUBLIC HEARINGS
5.1 Proposed Changes to the Housing Choice Voucher Administrative Plan and
Submission of HUD-50077 CR021
Support Services Manager Whalen provided an overview of the staff report.
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September 22, 2022
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MOTION by Commissioner Kelner, seconded by Commissioner Whitfield, to approve
the proposed changes to the Housing Choice Voucher (HCV) Administrative Plan and to
submit HUD-50077-CR. Vote. 5 Ayes. MOTION passed unanimously.
Acting Chair Williams opened and closed the public hearing because there was no one
present to speak.
6. NEW BUSINESS
6.1. Discussion of Proposed Moderate-Income Housing Policy
Housing and Economic Development Manager Pohlman gave an overview of the staff
report. She summarized that direct financial assistance is what drives this policy. She
provided an overview of the policy changes that were made resulting from bond and legal
counsel review. She also highlighted to the HRA that the final draft policy was routed to
those who had previously commented on the policy and were invited to provide comments
on the final draft now, either by submitting written comments or attending and providing
verbal comments at the September HRA meeting. There was one attendee present to listen
to the discussion, but who did not wish to provide verbal comments, and one written
comment was received from Housing First Minnesota. A copy of this written response was
distributed to the Housing and Redevelopment Authority Commission. Housing and
Economic Development Manager Pohlman reviewed a summary of the written comment
receive. She also noted that long-term compliance with the policy has been contemplated
and the staff recommendation is for it to be managed by a third party to ensure adequate
expertise and capacity as it relates to affordable housing compliance which will provide
expertise in compliance oversight and the capacity necessary for this function.
Commissioner Larson stated his reoccurring concern is to be sensitive to balancing long
term supply and demand with short term solutions for affordable housing. He said we wants
to be sure that what we put before the Council is supportable and grounded in the context
of financial feasibility as it relates to development. He said he has asked the former Housing
Manager for information about this type of policy being used in other cities locally and
nationwide. He said he is unprepared to vote on this policy until more answers about the
effects of this policy related to the amount of government assistance and actual
redevelopment costs to the developer can be shown. He said adding an affordability
component may deter some developers from Plymouth. He said there needs to be
practicality to what we discuss and not just growing another department of the city.
Housing and Economic Development Manager Pohlman replied there are a number of
examples of communities in the Twin Cities that have adopted similar policies, often
referred to as inclusionary zoning, though many cities have adopted other naming
conventions associated with these policies, with some communities such as St. Louis Park
and Minneapolis who are tracking new affordable units created as part of online dashboard
work.
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September 22, 2022
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Acting Chair Williams asked about the goal-oriented timeline the HRA had set forth to
consider this policy.
Housing and Economic Development Manager Pohlman replied by discussing the push
pull factors and stating there can be flexibility with regard to a specific timeline to bring
this policy to City Council. At this time, staff is weighing several redevelopment
opportunities in the works where this policy could be applied. She said that Housing TIF
projects require affordability, and that this policy would impact cases where
Redevelopment TIF is being considered. The timeline is driven more by potential
opportunity costs of pending redevelopment projects with direct financial assistance
requests to the City. However, that should be balanced with necessary due diligence
requested by the HRA to support consideration of such a policy. Currently the demand for
multi-family rental units is very strong in the Twin Cities metropolitan region, and the
rental market is moving significantly faster than the single-family market.
Commissioner Peterson said he appreciates Commissioner Larson’s point of view and
stated our discussion of this policy will benefit from considering his concerns. It is better
to look into these issues and delay bringing the policy to City Council to make sure people
are being well served and due diligence is conducted.
Commissioner Whitfield agreed further discussion will benefit all.
Commissioner Kelner expressed his consent to more discussion.
Mayor Wosje said there has been a longtime informal policy in Plymouth that if you ask
for TIF you are expected to bring affordability to the project. Recent developments have
resulted in expectations that 20% of the units are affordable because developers know the
City expects affordability. Mayor Wosje asked what the results of using this policy have
been, particularly in second tier suburbs. He said it is wise to understand what the HRA is
putting forward.
Acting Chair Williams said the intention was to bring this policy to City Council in early
fall. He asked if this information would be available in the next 30-45 days potentially.
Housing and Economic Development Manager Pohlman noted that staff could attempt to
provide additional information to inform the HRA’s recommendation yet this fall, likely at
an October or November meeting. Responding to an earlier question about compliance, she
gave a specific compliance model example of a 100-unit multifamily development with
20% of the units affordable at 60% AMI. In this case, the compliance cost that the City
anticipates incurring is about $1,800 and the owner/developer would be expected to take
on fees of approximately $2,300 in the first year for the annual set up (with fees decreasing
thereafter). She also noted that in reference to previous questions raised pertaining to how
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September 22, 2022
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the minimum development size was set at 10 units, said typically the multi-family
development in Plymouth ranges in size, but on average, is approaching 100 units.
Housing and Economic Development Manager Pohlman added that the Federal Reserve
Bank in Minneapolis has been active on this issue and would potentially be a good place
to reach out to.
Acting Chair Williams asked for a motion to pause voting on the Moderate-Income
Housing Policy until a later HRA meeting.
MOTION by Commissioner Larson, seconded by Commissioner Kelner, to pause voting
on the Moderate-Income Housing Policy until a later meeting. Vote. 5 Ayes. MOTION
passed unanimously.
6.2 Tax Increment Housing District 7-10: Sands (Element Project) and Associated
Closing Documents.
Housing and Economic Development Manager Pohlman gave an overview of the staff
report.
Commissioner Kelner asked where the $459,000 came from.
Housing and Economic Manager Pohlman replied that the TIF District, as previously
approved by the HRA and City Council, provided financing in this amount for a portion of
the costs of the construction of the site improvements incurred by the developer in the
project.
MOTION by Commissioner Peterson, seconded by Commissioner Kelner, to pass the
HRA Resolution Approving Pledge Agreement for the Element Project. Vote. 5 Ayes.
MOTION passed unanimously.
7. UPDATES
HRA Updates
• CDBG Program
• Redevelopment projects of interest
• Other
CDBG Update
Housing and Economic Development Manager Pohlman informed the Board that the
CDBG program grant for the 2022 program year was approved. The City Council also
approved advancing the CAPER which will be submitted to HUD next week. There is
$80,000 remaining of COVID funding and we are prioritizing key COVID impacts such
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as the need for emergency rental assistance, food security support and PPE supplies. The
RFP will be released tomorrow and will be open for three weeks. Staff has been in
communication with CDBG subgrantees about the prioritization for this supplemental
funding and our goal to get contracts in place so funds can be utilized in the first six
months of the 2023 calendar year. These emergency assistance funds need to be used by
July of 2023.
Redevelopment Projects of Interest
Community and Economic Development Director Parr spoke about ongoing development
and redevelopment projects. Regarding the Four Seasons Mall project, work continues
with Wellington Management to redevelop this site. The plans include multi-family
housing, a park and ride ramp, retail space and a medical office building. The City
successfully secured a $775,000 DEED grant to support redevelopment of the site and the
City is currently getting bids to demolish the building as its intended to be demolished
this winter. The Parkera-Dundee site is being redeveloped and will include a 70,000
square foot office building for TCO (Twin Cities Orthopedic); the ground breaking will
occur next week for this building. One of the later phases of this project is for multi-
family housing. The project in place for development in the area of Nathan Lane and
Schmidt Lake Rd continues. The Nathan Lane office warehouse building (United
Hardware) was demolished. CF Moto Sport Utility has been actively looking for a new
location and this site is a possibility for them to customize the space for their operations.
On Tuesday there was a closing on the Prudential site. The Planning Commission and
City Council will hold a work session to review the redevelopment plans for the
Prudential site. At this time, the ideas are for mixed us development. The site will
require a EIS Or AUAR in advance of the land use applications.
Commissioner Kelner asked if taking a piece of land from the Rockford Rd. property to
build something similar to Cranberry Ridge for low-income housing is being planned.
Community and Economic Development Director Parr responded the city has been
working with Wellington Management who is well-versed on affordable housing. There
are details to be discussed regarding how much money is needed in order to make a
project work. TIF funds will be needed and will include affordable housing.
Acting Chair Williams said he has spoken to many community neighbors of the Four
Seasons area. He noted that many residents of the area expressed skepticism about the
timeline and demolition given that the area has been blighted for some time. He inquired
further about the specific timeline.
Community and Economic Development Director Parr said there is motivation to tear the
building down. At this time, the City is taking bids to plan the cost and solidify timing. It
has been determined that it will be best to do so in the winter, the sooner the better.
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September 22, 2022
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Acting Chair Williams asked if the intentions for this property will be published in the
Sun-Sailor newspaper and if that is a good resource for people wanting more information.
Community and Economic Development Director Parr said the City of Plymouth website
has current and updated information of all development and redevelopment projects and
is a great place to direct City residents to stay informed on project timing.
Other
Housing and Economic Development Manager Pohlman provided an update on the HRA
budget process with the City and said the 2023 proposed HRA levy is 3.34%. Information
about the budget will be shared more broadly with the HRA, and we anticipate providing
additional information at an upcoming HRA meeting.
8. ADJOURNMENT
MOTION by Acting Chair Williams, with no objection, to adjourn the meeting at 7:55
pm