Loading...
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. Approved Minutes Plymouth Housing and Redevelopment Authority September 22, 2022 Page 2 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. Approved Minutes Plymouth Housing and Redevelopment Authority September 22, 2022 Page 3 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 Approved Minutes Plymouth Housing and Redevelopment Authority September 22, 2022 Page 4 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 Approved Minutes Plymouth Housing and Redevelopment Authority September 22, 2022 Page 5 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. Approved Minutes Plymouth Housing and Redevelopment Authority September 22, 2022 Page 6 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