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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 12-01-2022APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY December 1, 2022 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Lucas Larson, Aqueelah Whitfield, Wayne Peterson, James Williams, and Joel Spoonheim ABSENT: Commissioners Ronald Kelner STAFF PRESENT: Deputy City Manager Maria Solano, Support Services Manager, Denise Whalen, Housing and Redevelopment Authority Consultant Michele Schnitker Housing and Economic Development Coordinator Kenny Niemeyer, Permit Technician Michelle Bast OTHERS PRESENT: Jody Boedigheimer of Grace Management 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:03 p.m. Deputy City Manager Maria Solano introduced herself to the Board and explained her role. Consultant Michele Schnitker introduced herself to the Board and explained her role. 2. PUBLIC FORUM Chair Soderberg opened and closed the Public Forum as there was no one present to speak. 3. APPROVE AGENDA MOTION by Commissioner Williams, seconded by Commissioner Whitfield, to approve the Agenda. Vote. 6 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approve proposed minutes from October 27, 2022. 4.2. Plymouth Towne Square Housing Report 4.3 Vicksburg Crossing Housing Report 4.4 HRA Executive Director Appointment MOTION by Commissioner Spoonheim, seconded by Commissioner Whitfield, to approve the Consent Agenda. Vote. 6 Ayes. MOTION passed unanimously. Approved Minutes Plymouth Housing and Redevelopment Authority December 1, 2022 Page 2 5. PUBLIC HEARINGS No public hearings. 6. NEW BUSINESS 6.1. HRA Budget 2023 Deputy City Manager Solano gave an overview of the staff report. She pointed out that the tax levy has increased over the 2022 tax levy. There are no changes with CDBG funding. Support Services Manager Whalen gave an overview of the Housing Choice Voucher program. She informed the Board funding is unknown until the first of the year. Staff will monitor revenue and expenditures to ensure adequate reserves. Deputy City Manager Solano said changes are related to financial contractual services, also maintenance and repair at HRA owned buildings. Commissioner Spoonheim said it appears there is a budget detail missing related to an increase in the expense for financial services. On page four this increase is $10,000. He said professional and legal expenses are not increasing. Deputy City Manager Solano replied in the HRA general fund report on page seven it shows an increase of $8,000 for professional services. This is related to the general fund. Commissioner Williams asked if employees at the senior buildings are city staff since. salaries are included in the budgets for these buildings. Support Services Manager Whalen replied they are employees ofGrace Management. MOTION by Commissioner Larson, seconded by Commissioner Peterson, to approve the HRA Budget for 2023. Vote. 6 Ayes. MOTION passed unanimously. Commissioner Spoonheim proposed to wait to approve the general fund budget until the other budgets are discussed and voted on because some of the line items in the general fun budget relate directly to the budgets for the senior buildings. MOTION by Commissioner Williams, seconded by Commissioner Peterson, to withdraw the vote to approve the HRA Budget for 2023. Vote. 6 Ayes. MOTION passed unanimously. 6.2 Plymouth Towne Square 2023 Budget Deputy City Manager Solano gave an overview of the staff report. Approved Minutes Plymouth Housing and Redevelopment Authority December 1, 2022 Page 3 Commissioner Williams repeated his previous inquiry about the relationship between the management fee paid and the employee salaries included in the budget for the senior buildings. He asked whose employees these people are. Deputy City Manager Solano replied the City hires Grace Management to manage the properties and Grace Management hires the employees. Chair Soderberg said the management fee is incorporated into the budget. Commissioner Larson said it is a typical process that the project will pay for staff directly associated with the project. This includes staff, property managers, maintenance, and will allocate the cost of those employees. The fee goes to the corporate manager. Commissioner Williams asked about the wages and benefits of the employees being paid by the HRA if these are not HRA employees because Grace Management is their employer. He asked why we are paying a fee to Grace Management and paying for their employees. Mrs. Boedigheimer responded that Grace Management normally management services are based on a percentage of rents. The current agreement was structured in 2001 and was a different fee than 5% of revenue at the time. She said this is a nominal fee in comparison to other management companies. She said the property is responsible to pay the expenses of running the building. These expenses include employees and their benefits. Grace Management receives a fixed fee and this is rotated between both properties. Commissioner Williams asked about the line item where the fees are for the operating cost. Mrs. Boedigheimer replied the management fee does not include wages for the employees. Commissioner Peterson said this way of outlining expenses is good because it is transparent. He said the Board sees what the costs are rather then combining all into one lump sum. Chair Soderberg added that if the Board decided to take back management of the buildings from Grace Management we will know what it will cost to do so. Commissioner Williams asked if there is a conflict of interest. Deputy City Manager Solano said staff is happy with the services Grace Management and stated that all is functioning well. She said the city is comfortable with the associated fees. Commissioner Larson replied there is not a conflict of interest because the Board has the opportunity to review and approve the budget every year. This is a standard structure. Approved Minutes Plymouth Housing and Redevelopment Authority December 1, 2022 Page 4 MOTION by Commissioner Williams, seconded by Commissioner Spoonheim, to approve the Plymouth Towne Square Budget for 2023. Vote. 6 Ayes. MOTION passed unanimously. 6.3 Vicksburg Crossing 2023 Budget Deputy City Manager Solano gave an overview of the staff report. Commissioner Peterson relayed information received from Deputy City Manager Solano about the debt liability for Plymouth Towne Square and Vicksburg Crossing as it relates to notes and bonds. He read the following information from an email exchange: regarding the distinction between current and long-term refunding there were two outstanding bonds for the senior buildings. One originated in 2011 and the other in 2012. There was an internal loan given by the city to Plymouth Towne Square in 2021 to pay the balance owed and a payment schedule was created which causes the final payment to occur in 2023. The notes and bonds are payable to the city. On the balance sheet the debt payments are listed. The principal gets booked as an increase in assets; the interest is an expense. He says he looked in a couple different places to see where this was going out to and determined it was mostly rental income. He asked what percentage of the rent payments are going towards paying the notes. He asked when those payments are no longer needed will the rent be the same and that money be put into escrow. Chair Soderberg replied that will be up to the Board. The rents will not be decreased as long as affordability is maintained. The extra money will go into the general fund and then we can decide to finance another project. Commissioner Peterson asked what percentage of rent goes to the bond payment. Mrs. Boedigheimer said she does not have the numbers available to relay what percentage of the rent goes toward that payment. It is possible it will not require the same amount of subsidy. Chair Soderberg said the HRA financial consultants, Ehlers, will determine where we are going to be and when we are going to be there. This will happen after staff is hired. Commissioner Williams asked if there has been a prior precedent to learn how this was handled previously when debt was repaid. Support Services Manager Whalen answered no. She affirmed the rents will not go down as long as the units remain affordable. She stated the rent payment at Plymouth Towne Square differs for each individual because it is based on a percentage of their specific income. Vicksburg Crossing has some units at market rates, and some are affordable. She said subsidy might not be needed and then the HRA Tax Levy funds can be used for other projects if those funds are not going to the senior buildings. Approved Minutes Plymouth Housing and Redevelopment Authority December 1, 2022 Page 5 MOTION by Commissioner Spoonheim, seconded by Commissioner Whitfield, to approve the Vicksburg Crossing Budget for 2023. Vote. 6 Ayes. MOTION passed unanimously. MOTION by Commissioner Larson, seconded by Commissioner Whitfield, to approve the HRA Budget for 2023. Vote. 6 Ayes. MOTION passed unanimously. 7. UPDATES No January meeting, meeting in February for CDBG Action Plan Four Seasons mall Prudential site Chankahda Trail 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 7:41 p.m.