HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 12-07-2023APPROVED MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
DECEMBER 7, 2023
MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Wayne Peterson, James Williams, Ronald
Kelner, Joel Spoonheim, and Kim Vohs
ABSENT: None
STAFF PRESENT: HRA Executive Director Grant Fernelius, Finance Director Andrea Rich, Housing Manager
Steven Schmidt, Housing Coordinator Shelonda Marie-Alves, and Permit Technician Michelle Bast
OTHERS PRESENT: Mayor Jeffry Wosje and City Attorney Soren Mattick
1. CALL TO ORDER
Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at
7:00 p.m.
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 Peterson, to approve the Agenda.
Vote. 6 Ayes. MOTION passed unanimously.
4. CONSENT AGENDA
4.1. Approved minutes from October 26, 2023.
4.2. Plymouth Towne Square. Accept Monthly Housing Reports.
4.3. Vicksburg Crossing. Accept Monthly Housing Reports.
MOTION by Commissioner Williams, seconded by Commissioner Peterson, to approve the Consent
Agenda. Vote. 6 Ayes. MOTION passed unanimously.
5. PUBLIC HEARINGS
No public hearings.
6. NEW BUSINESS
6.1. HRA 2024 Budget
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Finance Director Rich gave an overview of the staff report.
Commissioner Peterson referenced the last debt payment that was mentioned and asked the
impact that would have going forward as the rents continue to be collected.
Finance Director Rich stated she proposes placing the funds into the capital reserve fund.
Chair Soderberg said at the February meeting they will delve more into finances and options going
forward. She stated that the January meeting, where they will discuss the strategic plan, will also
help to guide those discussions.
Commissioner Vohs referenced the replacement reserve and asked if there is a formula used to
place funds into that account.
Finance Director Rich commented she does not have background information on that. They will be
looking at capital needs moving forward to determine how much should be in that fund.
Chair Soderberg noted that is also on the agenda for a future meeting as the buildings are aging
and there may be structural issues needing to be addressed.
Commissioner Spoonheim asked for clarification on the staffing being funded through the HRA.
Finance Director Rich referred this question to HRA Executive Director Fernelius.
HRA Executive Director Fernelius responded the HRA funds housing related positions, which is
about 4.85 FTEs.
Commissioner Spoonheim said he looks forward to an updated TIF analysis as there is excess fund
balance without obligation against those balances. He commented on the overdue report from
Ehlers and was concerned the city is missing out on opportunities.
HRA Executive Director Fernelius replied that Ehlers has completed an executive summary and staff will
be reviewing that the following week. He anticipates Ehlers will review that summary at the February
meeting.
Commissioner Spoonheim said he is interested to hear about excess pooling capability for a housing and
redevelopment fund as well as the timing to ensure that additional districts are not decertified.
Commissioner Kelner referenced the budgets for the two apartment buildings and noted a two percent
increase for one building and $10 per month for the other building. He commented that the rents do not
seem to be keeping up with inflation and perhaps higher increases should be considered.
Chair Soderberg stated historically those buildings have been subsidized by the HRA with the intent to
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keep the rents very affordable. She stated that will not prevent them from changing in the future. She
said that should be discussed as part of the strategic planning.
Commissioner Williams said he is also interested in following up on the rational that drove the increase.
He would like more information on how funds will be projected for future reparations and increased
maintenance costs.
Commissioner Kelner asked how the operating and capital improvement funds are invested. He stated
that perhaps a money market or investment account would assist in returning money on those funds.
Commissioner Kelner commented that operating monies can be invested and the balance sheet shows
the operating funds. He said the funds might be better managed in a money market account or
investment account.
Finance Director Rich stated the operating account does sweep and makes some investment income. She
said often the investment value is offset by the market value. For the reserves, those are part of the city’s
pooled investments.
Commissioner Vohs stated that it appears that the projects are cash flowing and the cash flow is then
transferred to a reserve fund. He asked the balance in the operating fund for Vicksburg Crossings.
Commissioner Kelner replied that balance was about $800,000.
Finance Director Rich provided additional details on the reserve accounts for those properties.
MOTION by Commissioner Spoonheim, seconded by Commissioner Williams, to recommend that
the City Council approve the 2024 HRA budget. Vote. 6 Ayes. MOTION passed unanimously.
6.2 Vicksburg Crossing 2024 Budget
MOTION by Commissioner Williams, seconded by Commissioner Kelner, to adopt Resolution 2023-
08 approving the 2024 Vicksburg Crossing operating budget. Vote. 6 Ayes. MOTION passed
unanimously.
6.3 Plymouth Towne Square 2024 Budget
MOTION by Commissioner Kelner, seconded by Commissioner Spoonheim, to adopt Resolution
2023-09 approving the 2024 Plymouth Towne Square operating budget. Vote. 6 Ayes. MOTION
passed unanimously.
6.4 Discussion and Recommendations for an Inclusionary Housing Policy
HRA Executive Director Fernelius gave an overview of the staff report.
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City Attorney Mattick gave an overview of the comments he provided on the draft policy expressing
concern with some of the discretionary actions. He explained his role is to provide a legal opinion while
the letter provided from ODC is advocacy on the topic. He informed the commissioners that the HRA
does not typically have a role in the zoning process. He said the zoning ordinance is essentially the city’s
law.
Commissioner Peterson asked if the policy and ordinance can go together.
City Attorney Mattick replied policy and ordinance are separate. Ordinance is the law and policy dictates
how the law is administered. He does think you can use policy to govern law because policy does not
overturn statute. He restated that ordinance has the effect of the law. Policy is an advocacy piece. He said
his role is to give an opinion so that the HRA Board can proceed with what the law allows. He said there
needs to be legal authority to implement ordinance. He stated that the memo discusses inclusionary
zoning and provided the applicable state statutes; he said policy does not overturn state statute and cities
are creatures of statutes. His primary concern by inserting zoning has one of the discretionary elements is
using policy to guide how to walk through an ordinance without having the back up of state statute.
Commissioner Vohs asked for more information on the ability to include such policies within
PUDs. He asked if there would be a trigger within the PUD process for affordable housing.
City Attorney Mattick commented PUDs are quite common to use in redevelopment which
provides a give and take process. He noted that would be the point where affordability could be
discussed in return for higher density. He stated there is typically a nexus to the ask, such as
when the developer asks for something beyond what the code would allow. He stated he has not
seen a scenario where affordable housing has to be included simply because something is being
developed.
Commissioner Vohs stated that he would like to see a discussion on the topic during the planning
process, rather than a requirement to include affordable housing.
City Attorney Mattick stated density is typically the primary driver with a request for financial
assistance being the other ask that would drive a request for affordable housing in return.
Commissioner Williams stated he would like the document from ODC to become a part of the
record. He asked if there has been further evolution of discussion on the information referencing
the Attorney General, as that reference is dated.
City Attorney Mattick stated that he is not aware of any further information from the Attorney
General’s office and commented that the statute has not been updated since that time. He again
referenced the statute, which was mentioned, noting that applies to subdivision.
Commissioner Peterson understood that the HRA would not have the authority to create an
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ordinance but did not believe that was the intention with the discretionary measures. He
believed those triggers were to be used to generate a discussion rather than a requirement. He
asked what the proper language is used to clarify those discretionary items are simply meant to
trigger discussion.
City Attorney Mattick replied that if the document were not mandatory that could certainly be
done. He stated he interpreted the language to be a requirement rather than a policy that would
trigger discussion.
Chair Soderberg stated she also interpreted the policy to be a requirement.
Commissioner Peterson asked if they could now shift to have these triggers for discussion.
City Attorney Soren Mattick asked if that is the perspective of the HRA, or specifically
Commissioner Peterson, to speak of zonings in the document or only financial assistance. He
stated the planning commission and city council could then work on the zoning items. He said
when reviewing the roles, the planning commission would be the recommending body on zoning
issues.
Commissioner Peterson commented he only speaks for himself and wants there to be an
opportunity for staff to speak with developers about affordability. He stated if the developer
chose not to include affordability, that would be fine, but at least they would have had the
conversation and the city is working towards its goal of affordable housing.
City Attorney Mattick stated if a developer has a PUD application with no financial assistance
request, that would go straight to the planning commission and the HRA would not be included,
therefore he would be concerned with including that discussion on the HRA level.
Commissioner Peterson stated perhaps the HRA’s work could be considered advisory to the
planning commission in addition to the city council.
Executive Director Fernelius commented the HRA board could choose to move forward with the
policy, as directed, focusing on financial assistance as the trigger. He stated a second
recommendation could be made for the council to consider those additional ideas. He said that it
would be the prerogative of the council as to whether to consider that or to delegate to the
planning commission.
Commissioner Williams asked if the process could be short-cut by supplying the planning
commission with this information to gain input on the challenges they may see.
Executive Director Fernelius stated that he would prefer for the council to provide that direction
as he would not be comfortable referring a policy document from the HRA direct to the planning
commission without including the council as a first step.
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Mayor Wosje stated agreed with staff that each commission is meant to advise the council and
the council makes the decision as to whether another board or commission should be involved.
He recognized the desire to move quickly but stated that the process is meant to be deliberate
with public input and to be transparent.
Chair Soderberg commented she believes this is a good policy noting the HRA has been working
on this for three years with input from many stakeholders. She would like to see the policy
adopted with the recommended changes and then continue to advocate for additional paths to
discuss affordable housing.
Commissioner Kelner asked when the name of the document changed from moderate to
inclusionary housing.
Commissioner Peterson replied that occurred two meetings ago.
Chair Soderberg confirmed this was discussed and inclusionary is the preferred term.
Commissioner Spoonheim agreed about the different jurisdictions of the city commissions. He did
not believe the policy could be approved tonight as the comments of the city attorney would need
to be incorporated. He stated the city has an adopted comprehensive plan that calls out a need
for affordable housing and aside from this commission, there has been no work to implement that
plan. He believed that the HRA would be best served to adopt a narrower policy as per the
recommendation of the attorney, tied to the financial assistance element. He also believed a
second policy could be drafted that addresses the policy issues called for in the comprehensive
plan. He believed the policy should be separated out between what would be the purview of the
HRA and that which could go forward to the planning commission for consideration and
discussion. He stated he respects legal opinion and recognizes that the opinion of attorneys
differs on the topic of authority and zoning. He commented the city has an obligation to meet the
needs of the community. There is a dire shortage of housing and he hopes the city could be
positioned with the right policies and ordinances to accomplish that work. He stated he would
direct staff and the City Attorney to bring back a final edit that would strip out the discretionary
actions and address the other concerns raised by the City Attorney.
Commissioner Vohs commented that he would support separating the two as discusse d. He
agreed there should be a clean version of the policy in order to provide a recommendation of
approval. He stated it should also be made clear that the HRA did not take action on the other
elements as the body was advised it did not have that authority, and encourages the proper
bodies to consider those elements.
Chair Soderberg reiterated the desire of the commission is to have a clean draft to review at the next
meeting. She asked if staff should then bring a proposed document to address the second part related to
the discretionary items.
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HRA Executive Director Fernelius stated he understands the desire have a clean document to review and
as discussed to focus on the incentive-based approach where this would apply if there was a financial ask
from the developer. He stated he also understands the desire for a second document to be drafted that
asks the council to consider potential changes to the zoning code related to the discretionary measures.
Commissioner Vohs said they have studied this a lot and would like to do something within the PUD but
recognized they cannot and therefore would like to see that passed on.
HRA Executive Director Fernelius stated the HRA can make the recommendation and then the council and
potentially other bodies could decide whether or not to move those forward. He recognized that is a goal
the HRA feels is important and the recommendation would be for the council to study that.
Commissioner Peterson asked and received confirmation that staff would only edit the parts marked in
red and recommended.
City Attorney Mattick commented that he would provide both a redline version and final draft version for
comparison.
Commissioner Peterson asked if staff would find it helpful for a few members of the commission to
provide comments on what the second document may look like.
HRA Executive Director Fernelius commented that it would be most effective for staff to draft the
document and the commission could then review and provide comments.
Commissioner Vohs asked if the City Attorney is part of the statewide attorneys association, as this topic
has been on a list to address for that entity.
City Attorney Soren Mattick commented that entity is called the Minnesota Association of City Attorneys
(MACA) and confirmed he is an active member, noting he will be presenting on development in general in
February. He stated this particular item has been discussed amongst a few members, but it is not yet a
topic for the full group. He explained that while everyone agrees that the topic is important, cities are at
different stages and there are more pressing issues that more broadly apply. He noted that even of the
cities with this type of policy, each has approached it differently.
MOTION by Commissioner Williams, seconded by Commissioner Peterson, to direct the City
Attorney to bring back both a final and redline draft of the document as discussed for consideration
at the next meeting. Vote. 6 Ayes. MOTION passed unanimously.
7. UPDATES
HRA Executive Director Fernelius stated his written report provides updates on various development
related projects. He then provided a staffing update and introduced new members of staff. He noted
two members with expiring terms have expressed interest in being reappointed and therefore that has
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been forwarded to the council. He said there is one vacancy, and the council will interview three
candidates for that position. He highlighted upcoming topics for the HRA to consider in January and
February.
Chair Soderberg thanked staff for their continued hard work. She provided details on the housing tax
credit that is available to contribute towards for a tax deduction.
Commissioner Vohs explained that a project must first be approved to be part of the program and then
an individual can donate a minimum of $1,000 and will receive a tax credit in return. He stated a
general contribution could also be made towards an affordable housing pool. He asked if there are
affordable units included in any of the projects mentioned in the written update.
HRA Executive Director Fernelius commented they do not know the amount of affordability that could
be included in some of the projects, but it was confirmed that one of the projects proposed to have 20
percent of the units affordable.
Commissioner Vohs replied he hopes future projects will have affordable housing.
8. ADJOURNMENT
MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:21 p.m.