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HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 02-22-2024Housing and Redevelopment Authority 1 of 2 February 22, 2024 CITY OF PLYMOUTH AGENDA Regular Housing and Redevelopment Authority February 22, 2024, 7:00 PM 1. CALL TO ORDER 2. PUBLIC FORUM—Individuals may address the HRA about any item not contained on the regular agenda. A maximum of 15 minutes is allotted for the Forum. If the full 15 minutes are not needed for the Forum, the HRA will continue with the agenda. The HRA will take no official action on items discussed at the Forum, with the exception of referral to staff for future report. 3. APPROVE AGENDA —HRA members may add items to the agenda for discussion purposes or staff direction only. The HRA will not normally take official action on items added to the agenda. 4. CONSENT AGENDA —These items are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless HRA member or citizen so requests, in which event the item will be removed from the Consent Agenda and placed elsewhere on the agenda. 4.1 HRA Minutes - January 2024 Meeting Housing & Redevelopment Authority Minutes 01-25-2024 4.2 Metropolitan Housing Opportunities Program (MHOP) Conversion 2024-1 MHOP Resolution.pdf MPHA_Review_JPA__MHOP_Conversion_MC_12.07.23__004__-_shared_with _Plymouth__V2_.pdf 4.3 Accept Plymouth Towne Square monthly housing report and financials PTS BALANCE SHEET 1.2024.pdf PTS 12-MONTH P&L 1.2024.pdf PTS COMPARATIVE P&L 1.2024.pdf PTS VARIANCE 1.2024.pdf PTS CASHFLOW 1.2024.pdf 4.4 Accept Vicksburg Crossing monthly housing report and financials VC - Balance Sheet - 1.2024.pdf VC - 12-Month P&L - 1.2024.pdf VC COMPARATIVE 1.2024.pdf VC P&L VARIANCE 1.2024.pdf VC - Cashflow - 1.2024.pdf 5. PUBLIC HEARINGS 1 Housing and Redevelopment Authority 2 of 2 February 22, 2024 5.1 Program Year 2024 Community Development Block Grant (CDBG) Annual Action Plan CDBG Staff Report 2-24.pdf 2024 CDBG HRA Resolution 02.pdf 6. NEW BUSINESS 6.1 Presentation on Plymouth Tax Increment Financing (TIF) Program Plymouth Management Review Analysis TIF Districts - Executive Summary - FINAL 7. UPDATES 7.1 Staff Updates HRA Updates (February 2024) Econ_Dev_Annual_Report_2023 2024 Work Plan (HRA) 1-25-2024 8. ADJOURNMENT 2 Regular Housing and Redevelopment Authority February 22, 2024 Agenda Number:4.1 To:Dave Callister, City Manager Prepared by:Grant Fernelius, Community and Economic Development Director Reviewed by:Steven Schmidt, Housing Manager Item:HRA Minutes - January 2024 Meeting 1. Action Requested: Staff recommends approval of the January 25, 2024 HRA minutes. 2. Background: The January 25, 2024 minutes are attached. 3. Budget Impact: N/A 4. Attachments: Housing & Redevelopment Authority Minutes 01-25-2024 3 DRAFT MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY JANUARY 25, 2024 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Wayne Peterson, James Williams, Ronald Kelner, Joel Spoonheim, Ronald Kelner, Kim Vohs and Tony Kuechle. ABSENT: None STAFF PRESENT: HRA Executive Director Grant Fernelius, Housing Manager Steven Schmidt, Housing and Economic Development Coordinator Shelonda Marie-Alves, Permit Technician Michelle Bast OTHERS PRESENT: Mayor Jeffry Wosje 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:01 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 Vohs, to approve the agenda. Vote. 7 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approved minutes from December 7, 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. 7 Ayes. MOTION passed unanimously. 5. PUBLIC HEARINGS No public hearings. 6. NEW BUSINESS 6.1. Election of Officers: Chair, Vice-Chair, Secretary 4 Draft Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 2 Chair Soderberg commented that she would be willing to serve an additional term. MOTION by Commissioner Peterson, seconded by Commissioner Williams, to elect Michelle Soderberg as Chair. Vote. 7 Ayes. MOTION passed unanimously. MOTION by Commissioner Williams, seconded by Commissioner Vohs, to elect Wayne Peterson as Vice-Chair. Vote. 7 Ayes. MOTION passed unanimously. MOTION by Chair Soderberg, seconded by Commissioner Williams, to elect Kim Vohs as Secretary. Vote. 7 Ayes. MOTION passed unanimously. 6.2 Discussion and Recommendations for an Inclusionary Housing Policy HRA Executive Director Fernelius gave an overview of the staff report. Commissioner Spoonheim commended staff for incorporating the changes, noting that he would send additional grammatical changes to staff. He referenced the period of affordability, noting that in earlier drafts there was discussion related to that duration. He inquired about reinserting “a minimum of 25 years” as that would provide discretion to match the term from other outside entities that may require a longer term. He stated to ensure long-term affordability, they had discussed whether the city would want to have a first right of refusal to maintain the affordability component. He stated he also appreciates the perspective that would be hard to administer. He asked if there have been examples where cities have managed those first right of refusals to sustain affordability. MOTION by Commissioner Spoonheim, seconded by Commissioner Vohs, to amend the period of affordability to include the language “a minimum of 25 years”. Further discussion: Commissioner Vohs stated that he believes that would be appropriate as some entities that provide funding require a period of 30 years. Vote. 7 Ayes. MOTION passed unanimously. HRA Executive Director Grant Fernelius stated he does not have a lot of experience in his career dealing with that specific situation. He stated one of the concerns of the city attorney with the first right of refusal clause is that once the 25-year period has passed, a potential buyer may see that as an impediment to purchasing the property; therefore, that may be seen as a disincentive to participating in the program. He commented affordable projects include subsidies from different entities that come with their own requirements and therefore he did not believe this situation would occur that often. Commissioner Kuechle said that often causes more issues than one would think because of the required waiting periods and other elements that muddy the process of selling an asset. He provided additional information on the limitations involved for some buyers/sellers along with other requirements that could 5 Draft Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 3 interfere with the sale of property. Commissioner Kelner stated that the intent is to encourage developers to participate in this program. He agreed with Commissioner Kuechle that the first right of refusal creates a stumbling block for getting developers interested in Plymouth. He said he is not in favor of this. Commissioner Kuechle suggested a notice period given to the city when a property is to be sold. Chair Soderberg clarified the notice would only be for properties that meet the requirements of this policy and asked how long the notice period is. Commissioner Kuechle replied a minimum of 30 days Commissioner Williams commented that is a short time period. Commissioner Kuechle replied it will take longer than the notice period to process and this creates opportunities for a city to organize resources if they want to purchase the property. Commissioner Peterson used the example of Lakeview Commons, where there was a group of people that would have liked the opportunity to make an offer. He agreed that the notice period would be a good way to accomplish that goal. Commissioner Vohs asked if the notice period should be more encompassing than this policy, as Lakeview Commons would not have fallen under this policy. MOTION by Commissioner Williams, seconded by Commissioner Peterson, to recommend City Council approval of the Inclusionary Housing Policy. Vote. 6 Ayes. 1 Nay (Kuechle) MOTION passed unanimously. Chair Soderberg stated they are now to discuss the supplemental statement. Commissioner Vohs stated that his concern is with the third paragraph and provided a copy of the alternate suggestion that he provided. He stated that Commissioner Spoonheim also expressed concern. He read aloud his proposed paragraph. He recognized the different roles of each body (HRA, planning commission, city council), but also believed that those are intertwined as well. Commissioner introduced the following text (in italics): While it is not in the purview of the HRA to make zoning/land use policies, as the HRA has discussed the Inclusionary Housing Policy and zoning/land use policy discussions have been inexorably intertwined as it relates to the creation of affordable housing. The Plymouth HRA Strategic Plan adopted March 25, 2021, and reviewed on January 25, 2024, calls for the HRA to be proactive. The Strategic Plan states, 6 Draft Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 4 “Values. The Plymouth HRA is a facilitator and significant contributor to creating an economically healthy and diverse community, which is supportive of quality affordable and workforce housing for all incomes and family sizes.” As the HRA has learned the limitations of an Inclusionary Housing Policy that is not an Ordinance, the HRA is compelled, by its mission and values, to make an advisory statement to the City Council that it consider an Inclusionary Zoning Ordinance, as other Hennepin County communities have done. The HRA would be willing to collaborate with the City Council in this task, as its Mission states. The HRA believes that all policy options should be explored and that the board is prepared to participate in these discussions, as requested. MOTION by Commissioner Vohs, seconded by Commissioner Spoonheim, to substitute the third paragraph with the language that he provided. Further discussion: Chair Soderberg commented that she supports the language as presented by staff. Commissioner Spoonheim commented he seconded the motion because while the HRA is aware of the extensive work it has done on this policy; he believes that the planning commission and city council know very little about the work conducted by the HRA for this policy. He stated the HRA should advise with specificity and believes this language would provide that specificity. He suggested the entire statement begin with the following sentence “The City of Plymouth Comprehensive Plan calls for the creation of addition affordable housing.” He believes additional explanation is needed related to the strategic plan and its direction for affordable housing as well. He said context is needed. Chair Soderberg stated the Strategic Plan has been brought to the city council who approved it. Commissioner Williams commented he has concern with both versions. He did not believe the last sentence is needed in the third paragraph on the staff version. He referenced the second paragraph and expressed concern with the statement for increased density and decreased parking. HRA Executive Director Grant Fernelius stated that language was intended to provide examples of what could be considered. He stated that there are other cities that incentivize affordable housing, and this was merely included to provide an example and could be removed. He stated that there are ways to incentivize affordable housing outside, or in addition to, financial assistance. Commissioner Peterson clarified that the language does not imply that Plymouth has done this, but builds upon the previous sentence. Commissioner Vohs concurred with the suggestion from Commissioner Williams to remove the last sentence. He stated that he would like to strike the last sentence of his proposed third paragraph 7 Draft Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 5 and replace that with the last sentence from the staff drafted suggestion. MOTION by Commissioner Williams, seconded by Commissioner Kelner, to amend the suggested paragraph as described by Commissioner Vohs. Further discussion: Commissioner Peterson requested clarification of the authority of the HRA and its role. He stated perhaps one role of the HRA is to keep reminding the other commissions and governing bodies about affordable housing and its mention within the comprehensive plan and strategic plan. Commissioner Kuechle commented he does not believe this is needed. He stated he believes that this statement adds another level of uncertainty for developers. He stated that he does not like the policy at all. Commissioner Vohs commented that he does not believe that any of these four paragraphs mention a housing project, but just the policy. He stated that in terms of the supplement, he did not think this would limit development in any way. Commissioner Spoonheim commented the supplemental statement is not for the policy but is like a cover letter to be provided to the city council. He stated it could be drafted more as a letter to the council. Commissioner Kuechle stated the Supplemental Statement adds confusion to the policy. Commissioner Spoonheim believed that could be clarified by addressing this in letter format to the city council explaining the work that the HRA has done on this for the past two years. He stated that the last paragraph could be simplified to state that the HRA recommends that the council consider an inclusionary housing ordinance as other cities have done. He noted that would be a more confined version. Commissioner Kuechle commented on some of the things that he considers when coming into a community to consider creating a housing development, along with the research that he does on regulations, the comprehensive plan, and city fees. He stated that if a city has an inclusionary zoning ordinance, he tends to remove that city from consideration. Commissioner Spoonheim recognized that point of view. He noted there are developers with other interests looking for this type of clarity. Commissioner Vohs understood the opposition of Commissioner Kuechle. He noted the policy has already been approved and this discussion is just related to the supplemental statement. He asked why the wording of the supplemental statement would create additional burden or hurdles for a developer. He agreed that this is intended to be a cover letter for the city council. Chair Soderberg commented that is sounds more like the HRA is leaning more towards a cover 8 Draft Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 6 letter and, if so, the motion should be pulled. HRA Executive Director Grant Fernelius commented that perhaps this is more of a transmittal letter and supplemental should not be used. He stated that the substance is more important, and the format could be changed to be a letter or memo. MOTION by Commissioner Kelner, seconded by Commissioner Vohs, to change the name of the supplemental statement to transmittal letter. Vote. 7 Ayes. MOTION passed unanimously. Further discussion: Commissioner Vohs provided a summary of the proposed changes to the document as discussed tonight. He requested to strike two words from his submitted paragraph, removing “strong” and “seriously”. HRA Executive Director Grant Fernelius confirmed the first and second paragraphs would be kept the same as drafted by staff and the third paragraph would be replaced by that provided by Commissioner Vohs, except for that last sentence. And the last paragraph would be amended to delete the two words as just mentioned by Commissioner Vohs. Chair Soderberg noted that this would also be called a transmittal letter rather than a supplemental statement. She asked for a vote on the proposed document as discussed. MOTION by Commissioner Vohs, seconded by Commissioner Spoonheim, to substitute the language in the third paragraph of the Supplemental Statement with the language Commissioner Vohs read into the record. The last sentence of Commissioner Vohs’ language will be omitted, and the last sentence of the original document will be inserted in its place. Additionally, the words ‘strong’ and ‘seriously’ will be omitted. Vote. 5 Ayes. 1 Nay. (Kuechle) 1 Abstained. (Soderberg). MOTION passed. Chair Soderberg thanked staff, recognizing that this has been a long haul over the past two years. 7. UPDATES HRA Executive Director Grant Fernelius provided a verbal update related to development activity and interest. He also provided an update on the city’s legislative funding request and a recent visit from a legislative committee regarding that request. Commissioner Vohs asked about the location of the trailer park property and if that will be preserved. HRA Executive Director Fernelius said that some manufactured homes encroach in the right-of-way. The developer has chosen to dedicate additional right-of-way to resolve that issue. 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:02 p.m. 9 Regular Housing and Redevelopment Authority February 22, 2024 Agenda Number:4.2 To:Housing and Redevelopment Authority Prepared by:Steven Schmidt, Housing Manager Reviewed by:Steven Schmidt, Housing Manager Item:Metropolitan Housing Opportunities Program (MHOP) Conversion 1. Action Requested: Authorization to Execute JPA between MPHA and Metro HRA for Streamlined Voluntary Conversion of 19 MHOP Units to 19 Tenant Protection Vouchers 2. Background: In 2001 the Plymouth HRA entered into a Cooperation Agreement with the Minneapolis Public Housing Authority (MPHA) and as a result, nineteen Metropolitan Housing Opportunities Program (MHOP) units were located in Plymouth’s service jurisdiction. These units were created under the Hollman v. Cisneros settlement agreement, which was intended to reduce high concentrations of such units by dispersing them in small numbers to into non-concentrated locations of the Metropolitan area. The MPHA, currently administers 106 MHOP units of Public Housing in sixteen sites across eleven cities throughout the metropolitan region, including 19 in Plymouth. The process of managing and operating public housing has proven onerous and costly for property owners of the MHOP units. MPHA is working to ultimately convert these Project Based Subsidy Vouchers to Tenant Protection Vouchers (TPV) for the households in this program. The Plymouth HRA has been asked to participate in this conversion and to allow MPHA and Metro HRA to jointly coordinate the effort with HUD to convert these units. The next steps are as follows: MPHA and Metro HRA will enter into a Joint Powers Agreement (JPA) for these units to allow MPHA to continue to operate them as public housing until the approved Streamlined Voluntary Conversion (SVC) is complete and the units are removed from the public housing program. After Metro HRA receives HUD’s approval of the SCV application from the Special Allocations Center (SAC), that agency will apply for the Tenant Protection Vouchers (TPV). Metro HRA will then transfer back the Tenant Protection Vouchers (TPV) to the agencies that are outside of their jurisdiction, which includes nineteen units in Plymouth. It is anticipated that there will be no disruption to residents, including temporary or permanent displacement as a result of this process. Through this shift to the Tenant Protection Voucher (TPV) program, residents will have increased choice on where their family can live while simultaneously reducing the administrative burden of owners. The original cooperation agreement in 1997 was also 10 signed by the City. Staff anticipates that the document will also need to be approved by the City Council and is working with the city attorney on clarification. 3. Budget Impact: N/A 4. Attachments: 2024-1 MHOP Resolution.pdf MPHA_Review_JPA__MHOP_Conversion_MC_12.07.23__004__-_shared_with_Plymouth__V2_.pdf 11 CITY OF PLYMOUTH HRA RESOLUTION 2024-1 AUTHORIZING EXECUTION OF A JOINT POWERS AGREEMENT FOR CONVERSION OF METROPOLITAN HOUSING OPPORUNITIES PROGRAM UNITS AND PROVIDING RECOMMENDATION TO THE CITY COUNCIL TO AUTHORIZE EXECUTION OF SAME WHEREAS, THE Minneapolis Public Housing Authority in and For the City of Minneapolis (the “MPHA”) holds an Annual Contributions Contract (“MPHA ACC”) from the United States Department of Housing and Urban Development (“HUD”) for funding the capital and operating costs of low rent public housing units and projects throughout the Minneapolis-St. Paul Twin Cities metropolitan area pursuant to a certain consent decree entered in United States District Court (the “Consent Decree”); and WHEREAS, the MPHA has established the Metropolitan Housing Opportunities Program (“MHOP”) pursuant to which it cooperates with suburban counties and municipalities in the acquisition and operation of qualified housing units (the “MHOP units”); and WHEREAS, the MPHA and the Metropolitan Council with the consent of the Plymouth HRA wish to enter into a joint powers agreement to allow MPHA to continue to operate the MHOP Units as public housing until the approved Streamlined Voluntary Conversion (SVC) is complete and the units are removed from the public housing program and converted into Tenant Protection Vouchers (TPV); and WHEREAS, Metropolitan Council will then award 19 Tenant Protection Vouchers (TPV) to the Plymouth HRA; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF PLYMOUTH, MINNESOTA: 1. That the HRA shall approve a Joint Powers Agreement in substantially the attached form. 2. That the Chair and Executive Director of the HRA are authorized to execute said Joint Powers Agreement on behalf of said HRA. 3. That the Chair and Executive Director are authorized to make such changes in said Joint Powers Agreement as are not inconsistent with the spirit and purpose thereof. 4. That the HRA recommends that the City of Plymouth authorize its Mayor and City Manager to approve a Joint Powers Agreement in substantially the attached form. Adopted by the Plymouth Housing and Redevelopment Authority on February 22, 2024. Michelle Soderberg, Chair Grant Fernelius, Executive Director 12 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 1 Council Contract No. ________ MPHA No. ________ Plymouth HRA No. ________ JOINT EXERCISE OF POWERS AGREEMENT GOVERNING THE TRANSFER AND CONVERSION OF METROPOLITAN HOUSING OPPORTUNITY PROGRAM UNITS THIS AGREEMENT (“Agreement”) is between the Minneapolis Public Housing Authority in and for the City of Minneapolis (“MPHA”), the Metropolitan Council (“Council” or “Metro HRA”), and the Plymouth Housing and Redevelopment Authority (“Plymouth HRA”) and the City of Plymouth (“City of Plymouth”). The MPHA, the Council, the Plymouth HRA and the City of Plymouth are collectively the “Parties” and individually a “Party” to this Agreement. WHEREAS, under the Hollman consent decree (D. Minn. Apr. 20, 1995 (Civ. No. 4-92-712)) (as amended) the U.S. Department of Housing and Urban Development (“HUD”) provided capital funding to the MPHA for the development of 770 replacement public housing units located outside of minority- and poverty-concentrated areas in Minneapolis and the metropolitan area; and WHEREAS, under its Metropolitan Housing Opportunity Program (“MHOP”) the MPHA entered into Regulatory and Operating Agreements and other agreements with owners of mixed-finance developments and provided capital funding to pay a portion of the owners’ development costs and operating assistance to help operate and maintain the low-income character of the public housing program units (“MHOP Units”) in the developments; and WHEREAS, seventy-nine MHOP Units are located in the Council’s Section 8 area of operation (i.e., its “jurisdiction” under 24 C.F.R. § 982.4(b)), eight MHOP Units are located in Minneapolis, and nineteen MHOP Units are located in the City of Plymouth; and WHEREAS, operation of the MHOP Units under the federal public housing program is financially and administratively challenging for the MPHA and the owners of the developments within which these MHOP Units are located; and WHEREAS, in consultation with HUD the Parties determined these 106 MHOP Units can be administered more efficiently and still be maintained as affordable housing in their respective communities if the MHOP Units are converted from public housing program units to Section 8 Housing Choice Voucher (“HCV”) or Project-Based Voucher (“PBV”) assistance; and WHEREAS, this proposed conversion will require the MPHA to transfer the public housing program MHOP Units to the Council under the process prescribed in HUD Notice PIH 2014-24 (HA) (or subsequent guidance) after which transfer the Council will convert the public housing program MHOP Units to Section 8 HCV or PBV assistance under the Streamlined Voluntary Conversion (“SVC”) process prescribed in HUD Notice PIH 2019-05 (HA) (or subsequent guidance); and 13 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 2 WHEREAS, the Parties anticipate that the transfer and conversion of these MHOP Units will occur concurrently, or that the conversion will occur very soon after the transfer; and WHEREAS, the MPHA has engaged the services of a consultant (“Consultant”) to implement this transfer and conversion, including the development of a Conversion Plan for the MHOP Units and an SVC application; and WHEREAS, through its Metro HRA unit the Council administers Section 8 HCV and PBV assistance for households in Anoka, Carver, and most of suburban Hennepin and Ramsey counties; and WHEREAS, the MPHA and the Plymouth HRA administer their own Section 8 HCV and PBV programs within their respective jurisdictions; and WHEREAS, as part of the SVC process, the Council will apply to HUD for 106 Tenant Protection Vouchers (“TPVs”); and WHEREAS, upon receipt of the TPVs the Metro HRA will transfer participant files through portability to Minneapolis and Plymouth for the residents that remain in those MHOP Units and the other TPVs will be converted to PBVs for the MHOP Units in Metro HRA’s service area; and WHEREAS, implementation of this proposed transfer and conversion plan may require the Council to administer the public housing program MHOP Units located in Minneapolis and Plymouth until the MHOP Units are converted to Section 8 HCV or PBV assistance; and WHEREAS, the Council, the MPHA, and the Plymouth HRA are “governmental units” under Minnesota Statutes section 471.59, subdivision 1, and are authorized under section 471.59, subdivisions 1 and 10, to enter into a joint powers agreement under which they can perform on behalf of the others services or functions they are authorized to provide for themselves; and WHEREAS, this Agreement will permit the Council to temporarily hold the Annual Contributions Contract (ACC) for the public housing program MHOP Units located in Minneapolis and Plymouth; and WHEREAS, the Board of Commissioners of the Minneapolis Public Housing Authority approved this Agreement by action at its _________, 20__, meeting (Resolution No. __-___), the governing body of the Metropolitan Council approved this Agreement by action at its ________, 20__, meeting (Business Item No. 20__-___), and the Board of Commissioners of the Plymouth Housing and Redevelopment Authority approved this Agreement at its _________, 20__ meeting (Agenda Item ___). NOW, THEREFORE, the MPHA, the Council, and the Plymouth HRA agree as follows: I. PURPOSE AND FRAMEWORK 1.01 Purpose. The purposes of this Agreement are to: (1) implement a transfer of 106 public housing program MHOP Units to the Council and the conversion of those public housing MHOP Units to Section 8 HCV or PBV assistance; (2) establish terms and conditions under which the 14 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 3 MHPA will continue to manage the MHOP Units as public housing units until the transfer and conversion processes are successfully accomplished; and (3) establish a framework for accomplishing this transfer and conversion in a manner that is least disruptive to the households and individuals currently living in the MHOP Units and consistent with statutory and regulatory requirements and HUD guidance. 1.02 Framework. The framework for transferring and converting the 106 MHOP Units envisioned by the Parties comprises five components: (1) all 106 MHOP Units will be voluntary transferred to the Metro HRA as public housing program units; (2) the MPHA will continue to operate all 106 MHOP Units while the MHOP Units are public housing program units; (3) concurrently with this transfer, the Metro HRA will submit a Voluntary Conversion Plan to HUD to convert all 106 MHOP Units to Section 8 HCVs or PBVs; (4) the Metro HRA will transfer the eight MHOP Units located in Minneapolis to the MPHA and transfer the nineteen MHOP Units located in Plymouth to the Plymouth HRA, both of which transfers will be accomplished through portability; and (5) the Metro HRA will convert the seventy-nine MHOP Units in its jurisdiction to Section 8 PBV units. II. DEFINITIONS 2.01 Definitions. For the purposes of this Agreement, the following terms have the meanings ascribed to them in this section, unless otherwise indicated by the context: (a) “Administrative Plan” means the written administrative plan required under federal regulations (24 C.F.R. § 982.54) that establishes a PHA’s policies for the administration of its Section 8 HCV and PBV programs. The Administrative Plan may be amended from time to time. (b) “Affordability Period ” means the period specified in a Housing Assistance Payments (“HAP”) contract when an MHOP Unit in a development must be made available for occupancy by households or individuals receiving Section 8 HCV or PBV assistance. The Affordability Period is intended to help: (1) ensure the long-term affordability of the MHOP Units which were financed with capital grant funding under the Hollman consent decree; (2) retain affordable units located outside of minority- and poverty-concentrated areas; and (3) make affordable units available in higher-rent areas of the metropolitan area. The Affordability Period will extend at least through 2035 which is consistent with the time period specified in HUD’s Declarations of Trust/Restrictive Covenants. (c) “Conversion Plan” means a voluntary conversion plan that meets the applicable requirements of 24 C.F.R. sections 972.227 to 972.233 and HUD Notice PIH 2019-05 (HA). (d) “Effective Date” means the date this Agreement has been fully executed by the Parties’ authorized signatories. (e) “MHOP Households” means the households and individuals living in the 106 MHOP Units as of the Effective Date who are issued Tenant Protection Vouchers in connection with the transfer and conversion of the MHOP Units. The term “MHOP Households” does not include 15 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 4 households and individuals living in MHOP Units as of the Effective Date who do not qualify for Section 8 HCV, PBV, or TPV assistance. (f) “MHOP Units” means the 106 public housing program MHOP Units that are the subject of this Agreement. The MHOP Units are located in mixed-finance developments. The MHOP Units are not owned by the MPHA but, under the terms of HUD-required Declarations of Trust/Restrictive Covenants recorded against the properties, the MHOP Units currently must be made available to households and individuals who are eligible for public housing program assistance. A list of the 106 MHOP Units is attached to this Agreement. (g) “Portability” means the statutory and regulatory provisions (24 C.F.R. § 982.355) under which a person or family moves to an area outside the “initial” PHA jurisdiction and whose Section 8 HCV assistance is administered by the “receiving” PHA if a PHA with a Section 8 HCV program has jurisdiction in the area where the unit is located. (h) “Tenant Protection Vouchers” or “TPVs” mean replacement Tenant Protection Vouchers issued to eligible MHOP Households pursuant to applicable federal statutory and regulatory requirements and HUD PIH notices. III. TERM, EXPIRATION, AND TERMINATION 3.01 Term. This Agreement is effective on the Effective Date. 3.02 Expiration. Unless this Agreement is terminated earlier under Section 3.03, this Agreement will expire when the transfer and conversion process is complete. 3.03 Termination. This Agreement may be terminated or rescinded: (1) by a Party for any reason upon 90 days’ written notice to the other Parties; or (2) by mutual written agreement of the Parties. This Agreement automatically terminates if: (1) HUD does not approve the transfer of the MHOP Units; or (2) HUD does not approve the Conversion Plan; or (3) HUD does not provide Tenant Protection Vouchers sufficient to cover all eligible MHOP Households. If HUD approves the transfer but does not approve the Conversion Plan, the Parties will cooperatively work with HUD to expeditiously transfer the MHOP Units back to the MPHA. IV. EXERCISE OF POWERS 4.01 Implementation. The Parties intend to implement this MHOP Unit transfer and conversion in a manner that is least disruptive to the households and individuals living in the MHOP Units as of the Effective Date, and consistent with HUD Notice PIH 2014-24 (HA), HUD Notice PIH 2019- 05 (HA), and applicable statutory and regulatory requirements. (a) Council and Plymouth HRA Responsibilities. To accomplish this transfer and conversion the Council and the Plymouth HRA will: (1) provide assistance and information to the MPHA and its Consultant in conjunction with the Consultant’s development of the Conversion Plan and SVC application; 16 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 5 (2) assist the MPHA in both developing a plan for informing and informing the MHOP Unit households and individuals, and their landlords, about the transition to Section 8 HCV or PBV assistance and the households’ or individuals’ right (if any) to remain in the MHOP Units; (3) inspect the MHOP Units in accordance with HUD housing inspection standards for the units located in their respective jurisdictions; (4) enter into HAP contracts with the owners or property managers of the MHOP Units for the units located in their respective jurisdictions; (5) administer Section 8 HCV or PBV assistance for MHOP Households in MHOP Units located in their respective jurisdictions in accordance with their Administrative Plans; and (6) if required by HUD, execute and record new Declarations of Trust/Restrictive Covenants against the MHOP Units as required by the ACC and Notice PIH 2011-61 and subsequent guidance. [Source: Notice PIH 2014-24, sec. 8.h., p. 10] In addition to items (1) through (6), the Council will process MHOP Household applications for Section 8 HCV or PBV assistance, determine MHOP Household eligibility for Section 8 HCV or PBV assistance for the MHOP Units the household occupied as of the Effective Date, and issue HCVs or PBVs to eligible families and individuals. (b) MPHA Responsibilities. To accomplish this transfer and conversion the MPHA will: (1) fulfill the resident notification requirements specified in Section 8.q. of HUD Notice PIH 2014-24 (HA); (2) provide any required comparable housing and relocation assistance for all MHOP households and individuals who are “over-income families” or otherwise not eligible for replacement TPVs; (3) be responsible for complying with or cooperating with HUD regarding any environmental clearance requirements; and (4) administer Section 8 HCV or PBV assistance for MHOP Households in MHOP Units located in its jurisdictions in accordance with applicable regulations and policies. 4.02 Collaborative Efforts. On an as-needed basis, or as requested by a Party, the Parties will confer with each other on the status and implementation of the transfer and conversion. 4.03 No Disbursement of Funds. The MPHA, the Council, and the Plymouth HRA will be responsible for their own costs and expenses relating to the implementation of this conversion and transfer and will not be responsible for the other Parties’ costs and expenses., and none of the 17 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 6 Parties will disburse any fees or other funds to the other Parties under this Agreement except that the MPHA will be responsible for: (a) all costs of its Consultant including the Consultant’s work in developing an impact analysis, a Conversion Plan for the MHOP Units, and an SVC application; (b) the costs of providing any required comparable housing and/or relocation assistance for all households and individuals who are “over-income families” or otherwise are not eligible for replacement TPVs; (c) for all MHOP Households who may choose to move from their MHOP Units after conversion and all households and individuals who are “over-income families” or otherwise not eligible for replacement TPVs, the costs of the following activities, to the extent those activities are required: (1) providing information on counseling services; (2) direct relocation assistance; (3) providing relocation notices; and (4) relocation expenses; (d) the costs of any required environmental review associated with the transfer and conversion of the MHOP Units if those costs are paid by a PHA; and (e) the costs of preparing, executing, and recording: (1) any new Declarations of Trust/Restrictive Covenants that may be necessary; or (2) releases from existing Declarations of Trust/Restrictive Covenants that may be necessary. V. Management of MHOP Public Housing Units 5.01 Pre-Conversion Management of MHOP Units. When the MHOP units are transferred to the Council the MPHA will remain responsible for managing all MHOP Units until HUD approves the Conversion Plan (either in writing or by automatic approval under 24 C.F.R. § 972.236 HUD Notice PIH 2019-05 (HA)) and the MHOP Units are converted to Section 8 HCV or PBV assistance. 5.02 Operating Subsidy, Capital Funding, and Reserves. Until HUD approves the Conversion Plan and the MHOP Units are converted to Section 8 HCV or PBV assistance, the MPHA will be entitled to receive all public housing program operating subsidy and capital funding for the units. When the MHOP Units are transferred to the Council the MPHA will transfer to the Council the total budget authority on hand, restricted and unrestricted fund balances, grant balances, and accumulated reserves related to the MHOP Units. [Source: Notice PIH 2014-24, sec. 8.a., p. 8] 5.03 Post-Conversion of MHOP Units. Until the Affordability Period expires, the converted MHOP Units will be made available to households and individuals who are eligible for Section 8 HCV, TPV or PBV assistance. VI. REPRESENTATIONS AND WARRANTIES 6.01 Representations and Warranties. Except for Declarations of Trust/Restrictive Covenants recorded against the MHOP Units in connection with the capital funding HUD provided under the Hollman consent decree, the MPHA represents and warrants that the MHOP Units are not the 18 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 7 subject of any: court orders, consent decrees (including the Hollman consent decree), unsatisfied judgments, or any known potential or pending legal actions; or unresolved letter of findings under any fair housing or civil rights authority or a currently effective Voluntary Compliance Agreement (“VCA”) or Inspector General audit. [Source: Notice PIH 2014-24, sec. 5.b.(3), p. 5] VII. LIABILITIES 7.01 Liability. Under Minnesota Statutes, section 471.59, subdivision 1a, each Party will be responsible for its own acts and omissions and the results of those acts or omissions. None of the Parties waives any tort liability limitations conferred on it by Minnesota Statutes sections 466.04, or 471.59, subdivision 1a, or any other liability limitations or immunities conferred on it by state or federal law. 7.02 Indemnification. To the extent permitted by law, the MPHA will hold harmless, defend, and indemnify the Council and the Plymouth HRA for: (1) any performance deficiencies and HUD liabilities related to the MHOP Units sustained by the MPHA prior to the transfer of the MHOP Units while the MHOP Units are still under the MPHA’s own ACC; and (2) liabilities relating to the MHOP Units arising under pending litigation associated with the U.S. Housing Act of 1937, requirements of the Fair Housing Act, Title VI of the Civil Rights Act, or Section 504 of the Rehabilitation Act of 1973. [Source: Notice PIH 2014-24, sec. 5.e. and f., pp. 5 & 6] VIII. GENERAL PROVISIONS 8.01 Amendments. This Agreement may be amended by written agreement signed by the Parties’ duly authorized signatories. Any substantive amendments to this Agreement must be approved by action of the Council’s governing body, action of the Board of Commissioners of the Plymouth Housing and Redevelopment Authority, and action of the Board of Commissioners of the Minneapolis Public Housing Authority. 8.02 Authorized Representatives. For the purposes of administering this Agreement and receiving notices relating to this Agreement, the Parties’ authorized representatives (or their successors) are: For the Metropolitan Council: For the Minneapolis Public Housing Authority: Terri Smith, Director Metro HRA Dominic Mitchell, Deputy Executive Director 390 Robert Street North 1001 Washington Avenue North Saint Paul, Minnesota 55101 Minneapolis, Minnesota 55401 terri.smith@metc.state.mn.us dmitchell@mplspha.org For the Plymouth Housing and Redevelopment Authority: Grant Fernelius, Executive Director Plymouth City Hall 3400 Plymouth Boulevard Plymouth, Minnesota 55447 gfernelius@plymouthmn.gov 19 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 8 If a Party designates a different authorized representative the Party will notify the other Parties about the designation. The authorized representatives may not execute substantive amendments to this Agreement unless their respective governing bodies or their respective administrative policies and procedures authorize them to execute amendments. 8.03 Government Data. Data on household members and individuals living in the MHOP Units, including their home addresses, are classified as private data on individuals under Minnesota Statutes section 13.462, subdivisions 1 and 3. Data on household members and individuals that may be shared by the Parties under this Agreement will be administered consistent with Minnesota Statutes chapter 13, and other applicable state and federal laws and regulations. 8.04 Survival of Obligations. The representations, warranties, and indemnification obligations in this Agreement shall survive the expiration or termination of this Agreement. The Parties’ obligation to preserve the affordability of the MHOP Units and make the units available as HCV or PBV units at least through 2035 also shall survive the expiration or termination of this Agreement. 8.05 Application of Federal Law, Regulations, and HUD Notices. Nothing in this Agreement is intended to abrogate or conflict with applicable federal law, regulations, or HUD notices as applicable relating to or governing the transfer and conversion of the MHOP Units. 8.06 Execution in Counterpart; Electronic Signatures. This Agreement may be executed in counterpart. Electronic signatures of the Parties’ duly authorized signatories, by facsimile or email/Portable Document Format (PDF) transmission, shall be valid as an original signature of the authorized signatories and shall be effective to bind the Parties under this Agreement. IN WITNESS WHEREOF, the MPHA, the Council, and the Plymouth HRA have caused this Agreement to be executed by their duly authorized signatories. MINNEAPOLIS PUBLIC METROPOLITAN COUNCIL HOUSING AUTHORITY in and for the City of Minneapolis By: By: Abdulkadir Yassin Warsame LisaBeth Barajas Executive Director/CEO Executive Division Director Community Development Date: Date: 20 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 9 CITY OF PLYMOUTH By: Jeff Wosje Mayor By: Dave Callister City Manager Date: PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY By: Michelle Soderberg Chair By: Grant Fernelius Executive Director Date: 21 METROPOLITAN COUNCIL RESPONSES TO MPHA PROPOSED REVISIONS – 12/07/23 10 ATTACHMENT JOINT EXERCISE OF POWERS AGREEMENT GOVERNING THE TRANSFER AND CONVERSION OF METROPOLITAN HOUSING OPPORTUNITY PROGRAM UNITS The 106 MHOP Units are identified on the following page. Minnesota Government Data Practices Act Notice Under Minnesota Statutes section 13.462, subdivision 3, street addresses (and unit numbers) of the MHOP Units listed in this Attachment are private “benefit data” on the families and individuals living in the MHOP Units because the street addresses (and unit numbers) uniquely identify tenant families. Private data on individuals cannot be disclosed to unauthorized third persons or the general public. DRAFTER’S NOTE: Attach list of units with addresses and unit numbers. 22 Regular Housing and Redevelopment Authority February 22, 2024 Agenda Number:4.3 To:Dave Callister, City Manager Prepared by:Steven Schmidt, Housing Manager Reviewed by:Steven Schmidt, Housing Manager Item:Accept Plymouth Towne Square monthly housing report and financials 1. Action Requested: Accept attached Plymouth Towne Square monthly housing report and financials. 2. Background: The Plymouth HRA contracts with Grace Management, Inc. to manage the Plymouth Towne Square apartments. The attached report and financial statements cover the most recent reporting period (January 2024 and YTD). 3. Budget Impact: N/A 4. Attachments: PTS BALANCE SHEET 1.2024.pdf PTS 12-MONTH P&L 1.2024.pdf PTS COMPARATIVE P&L 1.2024.pdf PTS VARIANCE 1.2024.pdf PTS CASHFLOW 1.2024.pdf 23 Total ASSETS CURRENT ASSETS US BANK OPER ACCT US BANK SEC DEP ACCT INVESTMENTS - WORKING CAPITAL FUND INVESTMENTS - NEW DEBT SERVICE ACCOUNTS REC-TENANTS INTEREST RECEIVABLE PREPAID PROPERTY INSURANCE PREPAID WORKERS COMP INSUR PREPAID OTHER TOTAL CURRENT ASSETS 1,553,602 FIXED ASSETS LAND SITE IMPROVEMENTS BUILDING BUILDING IMPROVEMENTS FURN, FIXT & EQUIP-GENERAL CONSTRUCTION IN PROGRESS FURNITURE & FIXTURES - HOUSEKEEPING COMPUTERS/OFFICE EQUIPMENT LEASE ASSET ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS 2,867,870 NON-CURRENT ASSETS TOTAL ASSETS 4,421,472 7,465 8,696 13,060 3,608 (5,270,631) 5,910 459,247 211,914 5,767,619 1,195,121 471,772 917,906 328,234 5,352 417 14,437 568 Balance Sheet PLYMOUTH TOWNE SQUARE As Of January 31, 2024 Ending Balance 209,220 71,557 24 Total Balance Sheet PLYMOUTH TOWNE SQUARE As Of January 31, 2024 Ending Balance LIABILITIES CURRENT LIABILITIES ACCOUNTS PAYABLE-TRADE PREPAID MONTHLY RENT 401K WITHHOLDINGS PAYABLE ADVANCES FROM CITY ACCRUED PAYROLL ACCRUED DEBT SERVICE ACCRUED INTEREST ACCRUED REAL ESTATE TAXES LEASES PAYABLE -SHORT TERM NOTES PAYABLE-SERIES 2021A -ST ACCRUED OTHER TOTAL CURRENT LIABILITIES 69,119 LONG-TERM LIABILITIES SECURITY DEPOSITS NOTES PAYABLE-SERIES 2021A -LT 402,551 TOTAL LIABILITIES 471,670 EQUITY RETAINED EARNINGS RSRVD FOR DS RETAINED EARNINGS NET INVESTMENT IN CAPITAL ASSETS TOTAL EQUITY 3,935,035 CURRENT YEAR INCOME/(LOSS)14,767 TOTAL LIABILITIES & EQUITY 4,421,472 49,128 796,164 3,089,743 40,230 516 328,000 6,810 71,551 331,000 462 6,200 (328,000) 5,006 3,656 828 5,412 25 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Mar 31, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Nov 30, 2023 Dec 31, 2023 Jan 31, 2024 Total INCOME APARTMENT RENTAL REVENUE 64,901 65,505 65,775 65,324 64,566 62,847 63,001 62,725 61,552 62,074 768,700 HRA INDIVIDUAL 19,583 19,583 19,583 19,583 19,583 19,583 19,583 19,583 19,587 18,000 233,417 GARAGE RENT 4,060 3,995 3,970 4,010 4,015 3,955 4,020 3,960 3,960 3,990 47,965 GUEST ROOM REVENUE 0 0 675 65 130 0 0 65 0 0 1,165 LAUNDRY REVENUE 1,358 185 608 1,271 696 2,188 257 440 1,301 1,175 11,628 APPLICATION FEE REVENUE 35 0 0 0 35 105 35 0 0 0 280 TRANSFER FEE REVENUE 0 0 0 0 0 500 (500)0 0 0 0 INVESTMENT INCOME 425 428 10,852 (1,741)428 427 (362)425 421 424 12,578 CONTRIBUTED CAPITAL REVENUE 0 0 0 0 0 0 0 0 0 0 0 0 MISCELLANEOUS REVENUE 333 456 1,445 79 376 0 0 327 (241)95 3,000 TOTAL INCOME 90,695 90,152 102,909 88,592 89,830 89,605 86,034 87,525 86,579 85,757 1,078,733 EXPENSES ADMINISTRATION MANAGER SALARIES/WAGES 5,476 5,476 5,299 5,476 5,476 5,299 5,476 5,299 5,010 4,967 63,502 PAYROLL TAXES 1,091 729 727 724 717 1,014 788 690 1,115 381 9,563 HEALTH INSURANCE 1,876 1,355 581 1,092 1,035 1,387 2,431 3,379 670 1,353 17,085 WORKERS COMP INSURANCE 206 137 137 137 137 206 137 137 99 118 1,725 MAINTENANCE SALARIES/WAGES 5,888 4,953 4,712 4,917 4,819 4,797 4,725 4,786 4,831 4,478 58,087 EMPLOYEE COSTS 120 80 80 80 80 80 80 80 80 90 1,010 SEMINAR/TRAINING 0 35 0 0 0 0 0 0 0 0 35 DATA PROCESSING 0 0 0 52 31 31 32 39 27 31 244 BANK FEES 103 117 102 119 111 125 106 115 102 109 1,327 DUES, SUBS & MEMBERSHIPS 0 0 0 0 0 0 0 0 0 60 60 LICENSE & PERMITS 0 0 165 694 200 0 40 0 0 0 1,099 PRINTING 0 0 0 0 143 0 0 0 0 0 143 MANAGEMENT FEES 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 63,057 PROFESSIONAL FEES 0 25 0 0 0 1,455 23 0 0 0 1,503 TELEPHONE EXPENSE 421 420 411 414 418 414 418 427 489 392 5,045 EQUIPMENT LEASE/REPAIR 773 765 579 469 1,620 451 450 720 424 675 8,571 OFFICE SUPPLIES 0 0 41 0 161 49 85 18 0 75 665 TOTAL ADMIN EXPENSES 21,188 19,325 18,070 19,408 20,181 20,543 20,025 20,924 18,082 17,964 232,721 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 262 48 67 221 639 119 165 882 1,647 895 5,209 TOTAL LIFE ENRICHMENT EXPENSES 262 48 67 221 639 119 165 882 1,647 895 5,209 Twelve Month Profit and Loss PLYMOUTH TOWNE SQUARE For Year 2024 Period End Period End Feb 28, 2023 Apr 30, 2023 66,035 64,395 19,583 19,583 4,040 3,990 65 165 901 1,248 0 70 0 0 424 427 30 100 0 91,077 89,978 4,946 5,299 833 754 (268)2,196 137 137 5,241 3,940 80 80 0 0 0 0 110 107 0 0 0 0 0 0 5,483 5,234 0 0 382 437 876 769 53 184 17,874 19,138 147 117 147 117 26 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Mar 31, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Nov 30, 2023 Dec 31, 2023 Jan 31, 2024 Total Twelve Month Profit and Loss PLYMOUTH TOWNE SQUARE For Year 2024 Period End Period End Feb 28, 2023 Apr 30, 2023 HOUSEKEEPING CONTRACT LABOR 1,470 1,470 1,470 1,470 1,620 1,470 1,470 1,470 1,470 1,470 17,790 CLEANING SUPPLIES 202 0 36 4 363 57 0 10 549 390 1,643 TOTAL HOUSEKEEPING EXPENSES 1,672 1,470 1,506 1,474 1,983 1,527 1,470 1,480 2,019 1,860 19,433 BUILDING & GROUNDS CONTRACT LABOR 346 193 700 578 324 193 206 385 385 735 4,646 CABLE TV EXPENSE 110 103 97 103 110 103 103 111 104 127 1,294 UTILITIES - ELECTRICITY 1,772 2,287 2,352 2,449 2,632 2,547 2,715 2,529 1,950 1,800 26,091 UTILITIES - GAS 5,798 3,099 797 824 528 991 991 994 2,067 1,299 25,777 UTILITIES - WATER/SEWER 2,013 1,845 2,149 2,322 2,587 2,219 2,219 1,949 1,833 1,891 24,877 WATER SOFTENING SERVICE 369 253 340 439 346 0 180 720 547 376 4,585 DOORS, KEYS & WINDOWS 0 0 0 0 0 0 9 0 0 0 9 FIRE SYSTEM SERVICE 637 210 2,051 2,271 210 210 210 941 212 3,387 10,754 LAWN SERVICE/LANDSCAP/SNOW RMVL 1,110 1,465 2,583 1,570 8,969 1,460 1,340 1,825 1,725 1,545 30,472 PEST CONTROL 0 141 141 0 0 201 0 29 0 141 1,896 TRASH REMOVAL 2,053 2,254 2,225 1,924 1,953 1,923 1,922 1,917 1,699 1,917 23,644 UNIT TURNOVER REPAIRS 0 0 0 0 3,188 3,740 2,010 12,399 5,946 4,669 38,464 ELEVATOR-REPAIRS & MAINT 4,363 713 713 713 713 713 738 738 738 738 12,306 REPAIRS & MAINTENANCE 7,765 15,303 710 1,441 1,791 1,798 3,933 1,494 4,174 3,881 48,530 BUILDING & GROUNDS SUPPLIES 744 1,149 525 789 117 182 527 979 81 1,251 7,045 HVAC - REPAIRS & MAINTENANCE 543 975 315 873 299 299 910 833 299 2,030 10,991 TOTAL BUILDING & GROUNDS 27,622 29,990 15,698 16,295 23,768 16,579 18,012 27,842 21,759 25,786 271,381 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,987 3,987 3,607 3,860 3,755 3,755 3,755 3,755 3,755 3,755 45,945 PAYMENT IN LIEU OF PROPERTY TAX 3,083 3,083 3,083 3,083 3,083 3,083 3,083 3,083 3,087 3,230 37,147 TOTAL OTHER OPERATING EXPENSES 7,070 7,070 6,690 6,943 6,838 6,838 6,838 6,838 6,842 6,985 83,092 TOTAL OPERATING EXPENSES 57,814 57,903 42,031 44,341 53,408 45,606 46,509 57,967 50,349 53,490 611,836 NET OPERATING INCOME / ( L0SS)32,881 32,248 60,878 44,251 36,422 43,999 39,525 29,558 36,230 32,267 466,897 DEPREC, INTEREST & OTHER EXPENSE DEPRECIATION EXPENSE 16,325 16,325 16,325 16,325 16,325 16,325 16,325 16,325 16,325 17,500 197,075 RESERVE/REPLACE CAPITAL EXPENSE 0 0 6,547 0 0 7,200 1,715 0 8,293 0 49,330 INTEREST EXPENSE 166 0 166 0 0 159 0 0 157 0 648 TOTAL DEPREC, INTEREST & OTHER 16,491 16,325 23,038 16,325 16,325 23,684 18,040 16,325 24,775 17,500 247,053 NET INCOME / (LOSS)16,390 15,923 37,840 27,926 20,097 20,316 21,485 13,233 11,455 14,767 219,844 1,470 1,470 33 0 1,503 1,470 193 411 110 110 1,477 1,580 6,776 1,613 2,076 1,774 232 784 0 0 210 210 5,135 1,745 1,243 0 1,928 1,927 0 6,512 713 713 1,032 5,208 532 170 3,318 299 24,974 23,056 3,987 3,987 3,083 3,083 7,070 7,070 51,568 50,851 39,509 39,127 16,325 16,325 40,700 17,525 (1,191)21,602 24,375 1,200 0 0 27 MTD Actual Budget Last Year YTD Actual Budget Last Year 62,074 65,313 64,686 65,313 18,000 18,000 19,583 18,000 3,990 3,840 4,030 3,840 0 65 0 65 1,175 1,025 872 1,025 0 0 35 0 424 417 425 417 95 100 146 100 85,757 88,760 89,776 88,760 4,967 5,573 5,476 5,573 381 842 398 842 1,353 915 (82)915 118 180 137 180 4,478 4,907 4,938 4,907 90 90 80 90 31 0 0 0 109 115 108 115 60 60 60 60 0 15 0 15 0 15 0 15 5,234 5,234 4,985 5,234 0 229 23 229 392 425 400 425 675 750 360 750 75 115 302 115 17,964 19,465 17,186 19,465 895 65 360 65 895 65 360 65 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 895 360 TOTAL LIFE ENRICHMENT EXPENSES 895 360 OFFICE SUPPLIES 75 302 TOTAL ADMIN EXPENSES 17,964 17,186 TELEPHONE EXPENSE 392 400 EQUIPMENT LEASE/REPAIR 675 360 MANAGEMENT FEES 5,234 4,985 PROFESSIONAL FEES 0 23 MILEAGE REIMBURSEMENT 0 0 PRINTING 0 0 BANK FEES 109 108 DUES, SUBS & MEMBERSHIPS 60 60 EMPLOYEE COSTS 90 80 DATA PROCESSING 31 0 WORKERS COMP INSURANCE 118 137 MAINTENANCE SALARIES/WAGES 4,478 4,938 PAYROLL TAXES 381 398 HEALTH INSURANCE 1,353 (82) TOTAL INCOME 85,757 89,776 EXPENSES ADMINISTRATION MANAGER SALARIES/WAGES 4,967 5,476 INVESTMENT INCOME 424 425 MISCELLANEOUS REVENUE 95 146 LAUNDRY REVENUE 1,175 872 APPLICATION FEE REVENUE 0 35 GARAGE RENT 3,990 4,030 GUEST ROOM REVENUE 0 0 APARTMENT RENTAL REVENUE 62,074 64,686 HRA INDIVIDUAL 18,000 19,583 Comparative Profit and Loss PLYMOUTH TOWNE SQUARE Through January 31, 2024 Description INCOME 28 MTD Actual Budget Last Year YTD Actual Budget Last Year Comparative Profit and Loss PLYMOUTH TOWNE SQUARE Through January 31, 2024 Description 0 10 0 10 0 10 0 10 1,470 1,560 1,470 1,560 390 185 123 185 1,860 1,745 1,593 1,745 735 550 193 550 127 110 98 110 1,800 1,900 1,865 1,900 1,299 5,250 5,238 5,250 1,891 1,950 1,949 1,950 376 470 580 470 0 255 0 255 3,387 600 210 600 1,545 3,700 6,985 3,700 141 0 2,430 0 1,917 2,115 2,331 2,115 4,669 3,225 5,548 3,225 738 1,100 713 1,100 3,881 3,475 570 3,475 1,251 1,650 1,921 1,650 2,030 1,350 654 1,350 0 1,000 0 1,000 25,786 28,700 31,284 28,700 3,755 5,773 3,987 5,773 3,230 3,230 3,083 3,230 6,985 9,003 7,070 9,003 53,490 58,988 57,493 58,988 32,267 29,772 32,284 29,772 17,500 17,500 16,325 17,500 0 68,000 0 68,000 17,500 85,500 16,325 85,500 14,767 (55,728)15,959 (55,728)NET INCOME / (LOSS)14,767 15,959 RESERVE/REPLACE CAPITAL EXPENSE 0 0 TOTAL DEPREC, INTEREST & OTHER 17,500 16,325 NET OPERATING INCOME / ( L0SS)32,267 32,284 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 17,500 16,325 TOTAL OTHER OPERATING EXPENSES 6,985 7,070 TOTAL OPERATING EXPENSES 53,490 57,493 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,755 3,987 PAYMENT IN LIEU OF PROPERTY TAX 3,230 3,083 MISCELLANEOUS B & G EXPENSES 0 0 TOTAL BUILDING & GROUNDS 25,786 31,284 BUILDING & GROUNDS SUPPLIES 1,251 1,921 HVAC - REPAIRS & MAINTENANCE 2,030 654 ELEVATOR-REPAIRS & MAINT 738 713 REPAIRS & MAINTENANCE 3,881 570 TRASH REMOVAL 1,917 2,331 UNIT TURNOVER REPAIRS 4,669 5,548 LAWN SERVICE/LANDSCAP/SNOW RMVL 1,545 6,985 PEST CONTROL 141 2,430 DOORS, KEYS & WINDOWS 0 0 FIRE SYSTEM SERVICE 3,387 210 UTILITIES - WATER/SEWER 1,891 1,949 WATER SOFTENING SERVICE 376 580 UTILITIES - ELECTRICITY 1,800 1,865 UTILITIES - GAS 1,299 5,238 BUILDING & GROUNDS CONTRACT LABOR 735 193 CABLE TV EXPENSE 127 98 CLEANING SUPPLIES 390 123 TOTAL HOUSEKEEPING EXPENSES 1,860 1,593 HOUSEKEEPING CONTRACT LABOR 1,470 1,470 MARKETING ADVERTISING 0 0 TOTAL MARKETING EXPENSES 0 0 29 MTD Actual Budget Var.YTD Actual Budget Var.Year Budget INCOME APARTMENT RENTAL REVENUE 62,074 65,313 62,074 65,313 (3,239)783,756 HRA INDIVIDUAL 18,000 18,000 18,000 18,000 0 216,000 GARAGE RENT 3,990 3,840 3,990 3,840 150 46,080 GUEST ROOM REVENUE 0 65 0 65 (65)650 LAUNDRY REVENUE 1,175 1,025 1,175 1,025 150 12,300 APPLICATION FEE REVENUE 0 0 0 0 0 350 TRANSFER FEE REVENUE 0 0 0 0 0 500 INVESTMENT INCOME 424 417 424 417 7 5,000 MISCELLANEOUS REVENUE 95 100 95 100 (5)1,200 TOTAL INCOME 85,757 88,760 85,757 88,760 (3,003)1,065,836 EXPENSES ADMINISTRATION MANAGER SALARIES/WAGES 4,967 5,573 4,967 5,573 606 66,872 PAYROLL TAXES 381 842 381 842 461 10,060 HEALTH INSURANCE 1,353 915 1,353 915 (438)11,660 WORKERS COMP INSURANCE 118 180 118 180 62 2,160 MAINTENANCE SALARIES/WAGES 4,478 4,907 4,478 4,907 429 58,880 EMPLOYEE COSTS 90 90 90 90 0 1,170 SEMINAR/TRAINING 0 0 0 0 0 200 DATA PROCESSING 31 0 31 0 (31)0 BANK FEES 109 115 109 115 6 1,380 DUES, SUBS & MEMBERSHIPS 60 60 60 60 0 60 LICENSE & PERMITS 0 0 0 0 0 1,059 MILEAGE REIMBURSEMENT 0 15 0 15 15 180 POSTAGE/OVERNIGHT EXPRESS 0 0 0 0 0 150 PRINTING 0 15 0 15 15 180 MANAGEMENT FEES 5,234 5,234 5,234 5,234 0 62,808 PROFESSIONAL FEES 0 229 0 229 229 2,750 TELEPHONE EXPENSE 392 425 392 425 33 5,100 EQUIPMENT LEASE/REPAIR 675 750 675 750 75 9,000 OFFICE SUPPLIES 75 115 75 115 40 1,380 TOTAL ADMIN EXPENSES 17,964 19,465 17,964 19,465 1,501 235,049 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 895 65 895 65 (830)5,485 895 65 895 65 (830)5,485 TOTAL LIFE ENRICHMENT EXPENSES (830) 40 1,501 (830) 229 33 75 0 15 0 0 0 15 0 (31) 6 62 429 0 606 461 (438) 7 (5) (3,003) 150 0 0 0 150 (65) Profit and Loss Variance PLYMOUTH TOWNE SQUARE Through January 31, 2024 (3,239) 30 MTD Actual Budget Var.YTD Actual Budget Var.Year Budget Profit and Loss Variance PLYMOUTH TOWNE SQUARE Through January 31, 2024 MARKETING ADVERTISING 0 10 0 10 10 120 TOTAL MARKETING EXPENSES 0 10 0 10 10 120 HOUSEKEEPING CONTRACT LABOR 1,470 1,560 1,470 1,560 90 18,720 CLEANING SUPPLIES 390 185 390 185 (205)2,220 1,860 1,745 1,860 1,745 (115)20,940 BUILDING & GROUNDS CONTRACT LABOR 735 550 735 550 (185)6,600 CABLE TV EXPENSE 127 110 127 110 (17)1,400 UTILITIES - ELECTRICITY 1,800 1,900 1,800 1,900 100 25,300 UTILITIES - GAS 1,299 5,250 1,299 5,250 3,951 38,850 UTILITIES - WATER/SEWER 1,891 1,950 1,891 1,950 59 26,950 WATER SOFTENING SERVICE 376 470 376 470 94 5,640 DOORS, KEYS & WINDOWS 0 255 0 255 255 3,060 FIRE SYSTEM SERVICE 3,387 600 3,387 600 (2,787)13,500 LAWN SERVICE/LANDSCAP/SNOW RMVL 1,545 3,700 1,545 3,700 2,155 39,500 PEST CONTROL 141 0 141 0 (141)790 TRASH REMOVAL 1,917 2,115 1,917 2,115 198 25,380 UNIT TURNOVER REPAIRS 4,669 3,225 4,669 3,225 (1,444)38,700 ELEVATOR-REPAIRS & MAINT 738 1,100 738 1,100 362 13,200 REPAIRS & MAINTENANCE 3,881 3,475 3,881 3,475 (406)43,800 BUILDING & GROUNDS SUPPLIES 1,251 1,650 1,251 1,650 399 19,800 HVAC - REPAIRS & MAINTENANCE 2,030 1,350 2,030 1,350 (680)16,200 MISCELLANEOUS B & G EXPENSES 0 1,000 0 1,000 1,000 12,000 TOTAL BUILDING & GROUNDS 25,786 28,700 25,786 28,700 2,914 330,670 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,755 5,773 3,755 5,773 2,018 69,997 PAYMENT IN LIEU OF PROPERTY TAX 3,230 3,230 3,230 3,230 0 38,760 6,985 9,003 6,985 9,003 2,018 108,757 TOTAL OPERATING EXPENSES 53,490 58,988 53,490 58,988 5,498 701,021 NET OPERATING INCOME / ( L0SS)32,267 29,772 32,267 29,772 2,495 364,815 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 17,500 17,500 17,500 17,500 0 210,000 RESERVE/REPLACE CAPITAL EXPENSE 0 68,000 0 68,000 68,000 197,431 17,500 85,500 17,500 85,500 68,000 407,431 NET INCOME / (LOSS)14,767 (55,728)14,767 (55,728)70,495 (42,616)70,495 68,000 TOTAL DEPREC, INTEREST & OTHER 68,000 5,498 2,495 0 0 TOTAL OTHER OPERATING EXPENSES 2,018 1,000 2,914 2,018 (406) 399 (680) 198 (1,444) 362 (141) 255 (2,787) 2,155 3,951 59 94 (185) (17) 100 90 (205) TOTAL HOUSEKEEPING EXPENSES (115) 10 10 31 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Feb 29, 2024 Apr 30, 2024 May 31, 2024 Jun 30, 2024 Jul 31, 2024 Aug 31, 2024 Sep 30, 2024 Oct 31, 2024 Nov 30, 2024 Dec 31, 2024 Year To Date CASHFLOW RECONCILIATION: NET INCOME / (LOSS)0 0 0 0 0 0 0 0 0 0 14,767 ADJUSTMENTS TO NET CASHFLOW: DEPRECIATION & AMORTIZATION 0 0 0 0 0 0 0 0 0 0 17,500 (INCR) / DECR IN A/R 0 0 0 0 0 0 0 0 0 0 3,876 (INCR) / DECR IN ESCROW 0 0 0 0 0 0 0 0 0 0 0 (INCR) / DECR IN PREPAID EXP 0 0 0 0 0 0 0 0 0 0 1,826 (INCR)/DECR IN OTHER ASSETS 0 0 0 0 0 0 0 0 0 0 (18,000) (INCR) / DECR IN OTHER ASSETS 0 0 0 0 0 0 0 0 0 0 0 INCR /( DECR) IN ACCTS PAYABLE 0 0 0 0 0 0 0 0 0 0 (4,960) INCR /( DECR) IN ACCRD LIAB 0 0 0 0 0 0 0 0 0 0 5,289 TOTAL ADJUSTMENTS 0 0 0 0 0 0 0 0 0 0 5,531 NET OPERATING CASHFLOW:0 0 0 0 0 0 0 0 0 0 20,298 LESS CAPITAL EXPENDITURES: LAND 0 0 0 0 0 0 0 0 0 0 0 SITE IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 BUILDING 0 0 0 0 0 0 0 0 0 0 0 BUILDING IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 FURN, FIXT & EQUIP-GENERAL 0 0 0 0 0 0 0 0 0 0 0 CONSTRUCTION IN PROGRESS 0 0 0 0 0 0 0 0 0 0 0 FURNITURE & FIXTURES - HOUSEKEEPING 0 0 0 0 0 0 0 0 0 0 0 COMPUTERS/OFFICE EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 APARTMENT IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 VEHICLES 0 0 0 0 0 0 0 0 0 0 0 SIGNAGE 0 0 0 0 0 0 0 0 0 0 0 SMALL EQUIPMENT/FURNISHINGS 0 0 0 0 0 0 0 0 0 0 0 LEASE ASSET 0 0 0 0 0 0 0 0 0 0 0 PRINCIPAL PYMTS ON LT DEBT 0 0 0 0 0 0 0 0 0 0 0 CONTRIBUTED CAPITAL 0 0 0 0 0 0 0 0 0 0 0 RETAINED EARNINGS RSRVD FOR DS 0 0 0 0 0 0 0 0 0 0 0 RETAINED EARNINGS 0 0 0 0 0 0 0 0 0 0 0 NET INCR / (DECR) IN CASH:0 0 0 0 0 0 0 0 0 0 20,298 0 0 20,298 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,531 0 20,298 0 0 0 0 0 (4,960)0 5,289 0 0 0 1,826 0 (18,000)0 14,767 0 17,500 0 3,876 0 Twelve Month Profit and Loss PLYMOUTH TOWNE SQUARE For Year 2024 Period End Period End Jan 31, 2024 Mar 31, 2024 32 Regular Housing and Redevelopment Authority February 22, 2024 Agenda Number:4.4 To:Dave Callister, City Manager Prepared by:Steven Schmidt, Housing Manager Reviewed by:Steven Schmidt, Housing Manager Item:Accept Vicksburg Crossing monthly housing report and financials 1. Action Requested: Accept attached Vicksburg Crossing monthly housing report and financials. 2. Background: The Plymouth HRA contracts with Grace Management, Inc. to manage the Vicksburg Crossing apartments. The attached report and financial statements cover the most recent reporting period (January 2024 and YTD). 3. Budget Impact: N/A 4. Attachments: VC - Balance Sheet - 1.2024.pdf VC - 12-Month P&L - 1.2024.pdf VC COMPARATIVE 1.2024.pdf VC P&L VARIANCE 1.2024.pdf VC - Cashflow - 1.2024.pdf 33 Total ASSETS CURRENT ASSETS US BANK OPER ACCT US BANK SEC DEP ACCT INVESTMENTS - WORKING CAPITAL FUND INVESTMENTS - DEBT SERVICE ACCOUNTS REC-TENANTS INTEREST RECEIVABLE PREPAID PROPERTY INSURANCE PREPAID WORKERS COMP INSUR PREPAID OTHER TOTAL CURRENT ASSETS 2,120,360 FIXED ASSETS LAND SITE IMPROVEMENTS BUILDING FURNITURE, FIXTURES & EQUIP-GENERAL COMPUTERS/OFFICE EQUIPMENT LEASE ASSET ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS 5,782,417 NON-CURRENT ASSETS TOTAL ASSETS 7,902,777 6,669 (5,868,057) 3,429 874,593 261,390 9,904,487 594,654 8,680 1,137,098 543,713 (1,105) 417 13,399 581 Balance Sheet VICKSBURG CROSSING As Of January 31, 2024 Ending Balance 346,758 76,071 34 Total Balance Sheet VICKSBURG CROSSING As Of January 31, 2024 Ending Balance LIABILITIES CURRENT LIABILITIES ACCOUNTS PAYABLE-TRADE 401K WITHHOLDINGS PAYABLE ACCRUED PAYROLL ACCRUED COMPENSATED BALANCES ACCRUED INTEREST ACCRUED REAL ESTATE TAXES LEASES PAYABLE -SHORT TERM BOND PAYABLE-2021A ST ACCRUED OTHER TOTAL CURRENT LIABILITIES 650,177 LONG-TERM LIABILITIES SECURITY DEPOSITS BOND PREMIUM-2021A BOND PAYABLE-2021A LEASES PAYABLE -LONG TERM 6,399,830 TOTAL LIABILITIES 7,050,007 EQUITY NET INVESTMENTS IN CAPITAL ASSETS RESTRICTED FOR DEBT SERVICE UNRESTRICTED TOTAL EQUITY 839,208 CURRENT YEAR INCOME/(LOSS)13,562 TOTAL LIABILITIES & EQUITY 7,902,777 289,727 6,030,000 5,298 (1,164,950) 454,639 1,549,519 71,908 69,738 1,251 470,000 5,491 74,805 18,527 2,769 5,208 5,284 35 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Mar 31, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Nov 30, 2023 Dec 31, 2023 Jan 31, 2024 Total INCOME APARTMENT RENTAL REVENUE 105,807 106,201 106,321 104,966 104,681 104,879 102,958 103,687 107,038 106,223 1,263,070 APARTMENT RENTAL REVENUE - COUNTY 2,950 2,944 2,944 2,944 2,944 2,944 2,821 2,934 2,267 2,287 33,879 HRA SUBSIDY - TAX LEVY 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 45,000 GARAGE RENT 4,020 4,020 4,020 4,020 4,260 4,080 4,080 4,080 4,080 4,080 48,960 GUEST ROOM REVENUE 0 620 70 1,040 540 380 420 0 180 320 3,780 APPLICATION FEE REVENUE 0 35 0 35 140 0 70 140 70 35 525 TRANSFER FEE REVENUE 0 0 0 0 0 0 1,000 0 0 0 1,000 INVESTMENT INCOME 426 430 12,285 (1,921)430 430 (222)427 426 425 13,990 CONTRIBUTED CAPITAL REVENUE 0 0 0 0 0 0 0 0 0 0 0 MISCELLANEOUS REVENUE 320 320 320 (2,389)732 300 320 922 310 509 2,315 TOTAL INCOME 117,273 118,320 129,710 112,445 117,477 116,763 115,197 115,940 118,121 117,629 1,412,519 EXPENSES ADMINISTRATION MANAGER SALARIES 6,047 6,047 5,852 6,047 6,047 5,852 6,047 5,852 4,787 5,482 69,370 PAYROLL TAXES 1,075 720 726 776 746 1,099 714 710 1,156 392 9,587 HEALTH INSURANCE 1,571 (32)1,252 1,978 855 880 1,064 1,064 (1,228)1,255 11,405 WORKERS COMP INSURANCE 217 145 145 145 145 217 145 145 97 121 1,811 MAINTENANCE SALARIES/WAGES 4,778 4,937 4,558 4,711 4,796 4,578 4,672 4,468 4,956 4,284 55,466 EMPLOYEE COSTS 120 80 80 80 80 80 80 80 80 85 1,005 SEMINAR/TRAINING 0 0 0 0 0 0 0 0 0 0 35 DATA PROCESSING 0 0 0 22 31 31 62 39 27 31 244 BANK FEES 87 84 95 98 98 102 87 97 99 116 1,142 DUES, SUBS & MEMBERSHIPS 0 0 0 60 0 0 0 0 0 0 60 LICENSE & PERMITS 676 200 0 0 0 0 0 0 0 200 1,076 POSTAGE/OVERNIGHT EXPRESS 3 2 0 0 4 2 13 2 0 0 44 PRINTING 0 227 0 0 0 0 170 227 0 0 624 MANAGEMENT FEES 4,799 4,799 4,799 4,799 4,799 4,799 4,799 4,799 4,799 4,991 57,780 PROFESSIONAL FEES 0 0 0 50 25 1,411 75 0 75 0 1,636 TELEPHONE EXPENSE 529 528 528 534 433 494 492 552 635 559 6,452 EQUIPMENT LEASE/REPAIR 140 168 395 168 125 665 125 1,025 170 530 4,955 OFFICE SUPPLIES 34 0 339 0 204 227 0 101 103 0 1,304 TOTAL ADMIN EXPENSES 20,076 17,905 18,769 19,468 18,386 20,436 18,544 19,161 15,756 18,046 223,996 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 363 508 324 418 556 192 826 909 1,547 79 6,485 TOTAL LIFE ENRICHMENT EXPENSES 363 508 324 418 556 192 826 909 1,547 79 6,485 Twelve Month Profit and Loss VICKSBURG CROSSING For Year 2024 Period End Period End Feb 28, 2023 Apr 30, 2023 104,186 106,123 2,950 2,950 3,750 3,750 4,200 4,020 70 140 0 0 0 0 425 429 330 320 0 0 115,911 117,732 5,462 5,852 752 720 603 2,143 145 145 4,252 4,476 80 80 0 35 0 0 93 87 0 0 0 0 0 18 0 0 4,799 4,799 0 0 539 628 125 1,319 226 539 296 0 17,145 20,303 226 539 36 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Mar 31, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Nov 30, 2023 Dec 31, 2023 Jan 31, 2024 Total Twelve Month Profit and Loss VICKSBURG CROSSING For Year 2024 Period End Period End Feb 28, 2023 Apr 30, 2023 HOUSEKEEPING CONTRACT LABOR 1,361 1,361 1,361 1,361 2,281 1,571 1,826 2,540 1,361 1,517 19,262 CLEANING SUPPLIES 118 270 0 43 33 138 47 0 0 164 941 TOTAL HOUSEKEEPING EXPENSES 1,479 1,631 1,361 1,404 2,314 1,709 1,873 2,540 1,361 1,681 20,203 BUILDING & GROUNDS CONTRACT LABOR 433 193 153 582 700 241 193 153 442 131 3,933 CABLE TV EXPENSE 291 281 281 281 281 281 283 283 283 315 3,419 UTILITIES - ELECTRICITY 2,658 2,129 2,002 2,285 2,728 2,291 1,937 2,040 2,258 2,806 28,196 UTILITIES - GAS 3,853 1,106 602 622 517 612 921 891 3,869 4,093 24,314 UTILITIES - WATER/SEWER 1,459 1,594 1,711 1,805 2,244 2,024 1,678 1,641 1,976 1,809 21,062 WATER SOFTENING SERVICE 230 263 0 0 249 0 185 0 219 321 1,466 DOORS, KEYS & WINDOWS 0 554 0 0 0 0 0 29 11 33 627 FIRE SYSTEM SERVICE 55 928 55 55 55 517 55 57 57 845 2,787 LAWN SERVICE/LANDSCAP/SNOW RMVL 2,450 3,570 1,300 1,450 1,300 1,420 3,205 1,675 1,500 2,320 23,740 PEST CONTROL 153 0 153 0 0 153 0 0 153 0 867 TRASH REMOVAL 2,186 2,184 2,184 2,180 2,180 2,210 2,175 2,250 2,166 2,749 26,850 UNIT TURNOVER REPAIRS 0 0 0 0 13,965 0 18,594 14,619 0 7,543 54,721 ELEVATOR-REPAIRS & MAINT 607 607 607 607 607 607 607 607 607 607 7,283 REPAIRS & MAINTENANCE 2,673 3,480 5,838 6,461 3,400 827 539 2,856 2,479 3,006 41,916 BUILDING & GROUNDS SUPPLIES 350 459 1,610 0 343 136 195 412 621 1,019 5,575 HVAC - REPAIRS & MAINTENANCE 260 260 1,077 1,599 260 678 1,109 577 273 4,934 12,023 TOTAL BUILDING & GROUNDS 17,659 17,606 17,574 17,927 28,829 11,996 31,675 28,091 16,915 32,530 258,779 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,553 3,553 3,054 3,387 3,283 3,283 3,283 3,283 3,283 3,283 40,284 PAYMENT IN LIEU OF PROPERTY TAX 5,363 5,363 5,363 5,363 5,363 5,363 5,363 5,363 5,357 5,388 64,375 TOTAL OTHER OPERATING EXPENSES 8,916 8,916 8,417 8,750 8,646 8,646 8,646 8,646 8,640 8,671 104,659 TOTAL OPERATING EXPENSES 48,494 46,567 46,444 47,967 58,731 42,979 61,563 59,347 44,218 61,007 614,122 NET OPERATING INCOME / ( L0SS)68,780 71,754 83,266 64,478 58,746 73,783 53,634 56,593 73,903 56,623 798,397 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 26,470 26,470 26,470 26,470 26,470 26,470 26,470 26,470 26,470 24,876 316,046 AMORTIZATION EXPENSE (2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(27,900) RESERVE/REPLACE CAPITAL EXPENSE 14,945 67,845 0 0 11,712 42,618 0 9,086 0 9,890 170,871 INTEREST EXPENSE 11,909 11,733 11,911 11,733 11,733 11,905 11,734 11,733 11,898 10,620 140,375 TOTAL DEPREC, INTEREST & OTHER 50,999 103,723 36,056 35,878 47,590 78,668 35,879 44,964 36,043 43,061 599,392 NET INCOME / (LOSS)17,781 (31,969)47,210 28,600 11,156 (4,885)17,754 11,629 37,859 13,562 199,005 1,361 1,361 60 69 1,421 1,430 193 521 280 281 2,573 2,488 4,601 2,625 1,392 1,728 0 0 0 0 55 55 2,450 1,100 255 0 2,186 2,200 0 0 607 607 1,597 8,759 430 0 735 260 17,355 20,623 3,485 3,553 5,363 5,363 26,470 26,470 (2,325)(2,325) 8,848 8,916 44,994 51,812 70,917 65,920 35,039 15,267 0 14,775 11,733 11,733 35,878 50,653 37 MTD Actual Budget Last Year YTD Actual Budget Last Year 106,223 103,861 104,557 103,861 2,287 2,944 2,950 2,944 3,750 3,750 3,750 3,750 4,080 4,080 4,070 4,080 320 140 0 140 35 35 35 35 0 500 0 500 425 417 428 417 509 290 723 290 117,629 116,017 116,514 116,017 5,482 6,150 6,047 6,150 392 911 403 911 1,255 1,018 1,053 1,018 121 185 145 185 4,284 5,191 5,016 5,191 85 85 80 85 31 0 0 0 116 110 89 110 200 0 0 0 0 10 0 10 0 10 0 10 0 20 0 20 4,991 4,991 4,799 4,991 0 205 75 205 559 550 529 550 530 333 1,049 333 0 122 117 122 18,046 19,891 19,402 19,891 79 225 228 225 79 225 228 225 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 79 228 TOTAL LIFE ENRICHMENT EXPENSES 79 228 OFFICE SUPPLIES 0 117 TOTAL ADMIN EXPENSES 18,046 19,402 TELEPHONE EXPENSE 559 529 EQUIPMENT LEASE/REPAIR 530 1,049 MANAGEMENT FEES 4,991 4,799 PROFESSIONAL FEES 0 75 POSTAGE/OVERNIGHT EXPRESS 0 0 PRINTING 0 0 LICENSE & PERMITS 200 0 MILEAGE REIMBURSEMENT 0 0 DATA PROCESSING 31 0 BANK FEES 116 89 MAINTENANCE SALARIES/WAGES 4,284 5,016 EMPLOYEE COSTS 85 80 HEALTH INSURANCE 1,255 1,053 WORKERS COMP INSURANCE 121 145 EXPENSES ADMINISTRATION MANAGER SALARIES 5,482 6,047 PAYROLL TAXES 392 403 MISCELLANEOUS REVENUE 509 723 TOTAL INCOME 117,629 116,514 TRANSFER FEE REVENUE 0 0 INVESTMENT INCOME 425 428 GUEST ROOM REVENUE 320 0 APPLICATION FEE REVENUE 35 35 HRA SUBSIDY - TAX LEVY 3,750 3,750 GARAGE RENT 4,080 4,070 APARTMENT RENTAL REVENUE 106,223 104,557 APARTMENT RENTAL REVENUE - COUNTY 2,287 2,950 Comparative Profit and Loss VICKSBURG CROSSING Through January 31, 2024 Description INCOME 38 MTD Actual Budget Last Year YTD Actual Budget Last Year Comparative Profit and Loss VICKSBURG CROSSING Through January 31, 2024 Description 1,517 1,800 1,581 1,800 164 155 84 155 1,681 1,955 1,665 1,955 131 900 346 900 315 270 282 270 2,806 1,900 2,777 1,900 4,093 5,100 5,659 5,100 1,809 1,400 1,641 1,400 321 152 211 152 33 70 22 70 845 1,400 55 1,400 2,320 4,000 4,360 4,000 2,749 2,190 2,213 2,190 7,543 4,250 0 4,250 0 0 50 0 607 690 596 690 3,006 1,500 357 1,500 1,019 1,500 40 1,500 4,934 850 669 850 0 1,000 0 1,000 32,530 27,172 19,279 27,172 3,283 5,335 3,485 5,335 5,388 5,388 5,363 5,388 8,671 10,723 8,848 10,723 61,007 59,966 49,422 59,966 56,623 56,051 67,092 56,051 24,876 24,876 26,470 24,876 (2,325)2,207 (2,325)2,207 9,890 0 16,791 0 10,620 10,620 11,733 10,620 43,061 37,703 52,669 37,703 13,562 18,348 14,423 18,348 NET INCOME / (LOSS)13,562 14,423 INTEREST EXPENSE 10,620 11,733 TOTAL DEPREC, INTEREST & OTHER 43,061 52,669 AMORTIZATION EXPENSE (2,325)(2,325) RESERVE/REPLACE CAPITAL EXPENSE 9,890 16,791 NET OPERATING INCOME / ( L0SS)56,623 67,092 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 24,876 26,470 TOTAL OTHER OPERATING EXPENSES 8,671 8,848 TOTAL OPERATING EXPENSES 61,007 49,422 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,283 3,485 PAYMENT IN LIEU OF PROPERTY TAX 5,388 5,363 MISCELLANEOUS B & G EXPENSES 0 0 TOTAL BUILDING & GROUNDS 32,530 19,279 BUILDING & GROUNDS SUPPLIES 1,019 40 HVAC - REPAIRS & MAINTENANCE 4,934 669 ELEVATOR-REPAIRS & MAINT 607 596 REPAIRS & MAINTENANCE 3,006 357 UNIT TURNOVER REPAIRS 7,543 0 EQUIPMENT LEASE/REPAIR 0 50 LAWN SERVICE/LANDSCAP/SNOW RMVL 2,320 4,360 TRASH REMOVAL 2,749 2,213 DOORS, KEYS & WINDOWS 33 22 FIRE SYSTEM SERVICE 845 55 UTILITIES - WATER/SEWER 1,809 1,641 WATER SOFTENING SERVICE 321 211 UTILITIES - ELECTRICITY 2,806 2,777 UTILITIES - GAS 4,093 5,659 BUILDING & GROUNDS CONTRACT LABOR 131 346 CABLE TV EXPENSE 315 282 1,581 CLEANING SUPPLIES 164 84 TOTAL HOUSEKEEPING EXPENSES 1,681 1,665 HOUSEKEEPING CONTRACT LABOR 1,517 39 MTD Actual Budget Var.YTD Actual Budget Var.Year Budget INCOME APARTMENT RENTAL REVENUE 106,223 103,861 106,223 103,861 2,362 1,250,797 APARTMENT RENTAL REVENUE - COUNTY 2,287 2,944 2,287 2,944 (657)35,328 HRA SUBSIDY - TAX LEVY 3,750 3,750 3,750 3,750 0 45,000 GARAGE RENT 4,080 4,080 4,080 4,080 0 48,960 GUEST ROOM REVENUE 320 140 320 140 180 2,100 APPLICATION FEE REVENUE 35 35 35 35 0 560 TRANSFER FEE REVENUE 0 500 0 500 (500)1,000 INVESTMENT INCOME 425 417 425 417 8 5,000 MISCELLANEOUS REVENUE 509 290 509 290 219 3,480 TOTAL INCOME 117,629 116,017 117,629 116,017 1,612 1,392,225 EXPENSES ADMINISTRATION MANAGER SALARIES 5,482 6,150 5,482 6,150 668 73,800 PAYROLL TAXES 392 911 392 911 519 10,888 HEALTH INSURANCE 1,255 1,018 1,255 1,018 (237)12,872 WORKERS COMP INSURANCE 121 185 121 185 64 2,220 MAINTENANCE SALARIES/WAGES 4,284 5,191 4,284 5,191 907 62,296 EMPLOYEE COSTS 85 85 85 85 0 1,110 SEMINAR/TRAINING 0 0 0 0 0 150 DATA PROCESSING 31 0 31 0 (31)0 BANK FEES 116 110 116 110 (6)1,320 DUES, SUBS & MEMBERSHIPS 0 0 0 0 0 65 LICENSE & PERMITS 200 0 200 0 (200)906 MILEAGE REIMBURSEMENT 0 10 0 10 10 120 POSTAGE/OVERNIGHT EXPRESS 0 10 0 10 10 120 PRINTING 0 20 0 20 20 225 MANAGEMENT FEES 4,991 4,991 4,991 4,991 0 59,892 PROFESSIONAL FEES 0 205 0 205 205 2,460 TELEPHONE EXPENSE 559 550 559 550 (9)6,600 EQUIPMENT LEASE/REPAIR 530 333 530 333 (197)4,000 OFFICE SUPPLIES 0 122 0 122 122 1,464 TOTAL ADMIN EXPENSES 18,046 19,891 18,046 19,891 1,845 240,508 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 79 225 79 225 146 6,575 79 225 79 225 146 6,575 TOTAL LIFE ENRICHMENT EXPENSES 146 122 1,845 146 205 (9) (197) 10 20 0 0 (200) 10 0 (31) (6) 64 907 0 668 519 (237) 8 219 1,612 180 0 (500) (657) 0 0 Profit and Loss Variance VICKSBURG CROSSING Through January 31, 2024 2,362 40 MTD Actual Budget Var.YTD Actual Budget Var.Year Budget Profit and Loss Variance VICKSBURG CROSSING Through January 31, 2024 MARKETING ADVERTISING 0 0 0 0 0 500 TOTAL MARKETING EXPENSES 0 0 0 0 0 500 HOUSEKEEPING CONTRACT LABOR 1,517 1,800 1,517 1,800 283 21,600 CLEANING SUPPLIES 164 155 164 155 (9)1,860 1,681 1,955 1,681 1,955 274 23,460 BUILDING & GROUNDS CONTRACT LABOR 131 900 131 900 769 10,800 CABLE TV EXPENSE 315 270 315 270 (45)3,240 UTILITIES - ELECTRICITY 2,806 1,900 2,806 1,900 (906)28,500 UTILITIES - GAS 4,093 5,100 4,093 5,100 1,007 32,900 UTILITIES - WATER/SEWER 1,809 1,400 1,809 1,400 (409)20,300 WATER SOFTENING SERVICE 321 152 321 152 (169)1,824 DOORS, KEYS & WINDOWS 33 70 33 70 37 840 FIRE SYSTEM SERVICE 845 1,400 845 1,400 555 6,600 LAWN SERVICE/LANDSCAP/SNOW RMVL 2,320 4,000 2,320 4,000 1,680 27,300 PEST CONTROL 0 0 0 0 0 880 TRASH REMOVAL 2,749 2,190 2,749 2,190 (559)26,280 UNIT TURNOVER REPAIRS 7,543 4,250 7,543 4,250 (3,293)51,000 ELEVATOR-REPAIRS & MAINT 607 690 607 690 83 8,280 REPAIRS & MAINTENANCE 3,006 1,500 3,006 1,500 (1,506)28,450 BUILDING & GROUNDS SUPPLIES 1,019 1,500 1,019 1,500 481 18,000 HVAC - REPAIRS & MAINTENANCE 4,934 850 4,934 850 (4,084)10,300 MISCELLANEOUS B & G EXPENSES 0 1,000 0 1,000 1,000 12,000 TOTAL BUILDING & GROUNDS 32,530 27,172 32,530 27,172 (5,358)287,494 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,283 5,335 3,283 5,335 2,052 64,846 PAYMENT IN LIEU OF PROPERTY TAX 5,388 5,388 5,388 5,388 0 64,650 8,671 10,723 8,671 10,723 2,052 129,496 TOTAL OPERATING EXPENSES 61,007 59,966 61,007 59,966 (1,041)688,033 NET OPERATING INCOME / ( L0SS)56,623 56,051 56,623 56,051 572 704,192 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 24,876 24,876 24,876 24,876 0 298,514 AMORTIZATION EXPENSE (2,325)2,207 (2,325)2,207 4,532 26,486 RESERVE/REPLACE CAPITAL EXPENSE 9,890 0 9,890 0 (9,890)105,000 INTEREST EXPENSE 10,620 10,620 10,620 10,620 0 127,440 43,061 37,703 43,061 37,703 (5,358)557,440 NET INCOME / (LOSS)13,562 18,348 13,562 18,348 (4,786)146,752 0 TOTAL DEPREC, INTEREST & OTHER (5,358) (4,786) 0 4,532 (9,890) TOTAL OTHER OPERATING EXPENSES 2,052 (1,041) 572 2,052 0 (4,084) 1,000 (5,358) 83 (1,506) 481 0 (559) (3,293) 1,680 37 555 1,007 (409) (169) 769 (45) (906) 283 (9) TOTAL HOUSEKEEPING EXPENSES 274 0 0 41 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Feb 29, 2024 Apr 30, 2024 May 31, 2024 Jun 30, 2024 Jul 31, 2024 Aug 31, 2024 Sep 30, 2024 Oct 31, 2024 Nov 30, 2024 Dec 31, 2024 Year To Date CASHFLOW RECONCILIATION: NET INCOME / (LOSS)0 0 0 0 0 0 0 0 0 0 13,562 ADJUSTMENTS TO NET CASHFLOW: DEPRECIATION & AMORTIZATION 0 0 0 0 0 0 0 0 0 0 24,876 (INCR) / DECR IN A/R 0 0 0 0 0 0 0 0 0 0 3,053 (INCR) / DECR IN ESCROW 0 0 0 0 0 0 0 0 0 0 0 (INCR) / DECR IN PREPAID EXP 0 0 0 0 0 0 0 0 0 0 3,395 (INCR)/DECR IN OTHER ASSETS 0 0 0 0 0 0 0 0 0 0 (3,750) (INCR) / DECR IN OTHER ASSETS 0 0 0 0 0 0 0 0 0 0 0 INCR /( DECR) IN ACCTS PAYABLE 0 0 0 0 0 0 0 0 0 0 533 INCR /( DECR) IN ACCRD LIAB 0 0 0 0 0 0 0 0 0 0 17,706 TOTAL ADJUSTMENTS 0 0 0 0 0 0 0 0 0 0 45,813 NET OPERATING CASHFLOW:0 0 0 0 0 0 0 0 0 0 59,375 LESS CAPITAL EXPENDITURES: LAND 0 0 0 0 0 0 0 0 0 0 0 SITE IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 BUILDING 0 0 0 0 0 0 0 0 0 0 0 BUILDING IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 FURNITURE, FIXTURES & EQUIP-GENERAL 0 0 0 0 0 0 0 0 0 0 0 CONSTRUCTION IN PROGRESS 0 0 0 0 0 0 0 0 0 0 0 FURNITURE & FIXTURES - HOUSEKEEPING 0 0 0 0 0 0 0 0 0 0 0 COMPUTERS/OFFICE EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 APARTMENT IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 VEHICLES 0 0 0 0 0 0 0 0 0 0 0 SMALL EQUIPMENT/FURNISHINGS 0 0 0 0 0 0 0 0 0 0 0 LEASE ASSET 0 0 0 0 0 0 0 0 0 0 0 PRINCIPAL PYMTS ON LT DEBT 0 0 0 0 0 0 0 0 0 0 (2,325) CONTRIBUTED CAPITAL 0 0 0 0 0 0 0 0 0 0 0 PARTNER DISTRIBUTIONS - CPF 0 0 0 0 0 0 0 0 0 0 0 PARTNER DISTRIBUTIONS - NON-CPF 0 0 0 0 0 0 0 0 0 0 0 NET INVESTMENTS IN CAPITAL ASSETS 0 0 0 0 0 0 0 0 0 0 0 RESTRICTED FOR DEBT SERVICE 0 0 0 0 0 0 0 0 0 0 0 UNRESTRICTED 0 0 0 0 0 0 0 0 0 0 0 RETAINED EARNINGS-RSRVD FOR DS 0 0 0 0 0 0 0 0 0 0 0 RETAINED EARNINGS 0 0 0 0 0 0 0 0 0 0 0 NET INCR / (DECR) IN CASH:0 0 0 0 0 0 0 0 0 0 57,050 0 0 0 0 57,050 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (2,325)0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 45,813 0 59,375 0 0 0 0 0 533 0 17,706 0 0 0 3,395 0 (3,750)0 13,562 0 24,876 0 3,053 0 Twelve Month Profit and Loss VICKSBURG CROSSING For Year 2024 Period End Period End Jan 31, 2024 Mar 31, 2024 42 Regular Housing and Redevelopment Authority February 22, 2024 Agenda Number:5.1 To:Housing and Redevelopment Authority Prepared by:Steven Schmidt, Housing Manager Reviewed by:Grant Fernelius, Community and Economic Development Director Item:Program Year 2024 Community Development Block Grant (CDBG) Annual Action Plan 1. Action Requested: Staff recommends, approval of Resolution No. 2024-2 after the Plymouth Housing and Redevelopment Authority considers comments from the public hearing related to the CDBG 2024 program allocations as noted in the attached report. 2. Background: The Community Development Block Grant (CDBG) is a federally funded program administered by the U.S. Department of Housing & Urban Development (HUD). It’s intended to support community development activities to build stronger and more resilient communities. The CDBG program has three national objectives and in order for an activity to be eligible, it must meet one of the three national objectives listed below. 1. Benefit low- and moderate-income individuals 2. Aid in the prevention or elimination of slums or blight 3. Meet community needs that present a serious or immediate threat to the overall health or welfare of the community Since 1994, the City of Plymouth has annually received a CDBG allocation for being an entitlement community and a member of the Hennepin County Consortium. The HRA continues to carry out identified activities that best serve the housing and community development needs of the city. These activities include providing for preservation of the City’s housing stock, improving housing affordability, providing essential social services, and supporting fair housing activities. Staff anticipates for the 2024 program year, which runs from July 1, 2024, to June 30, 2025, HUD will allocate $262,452 to the City. The HRA allocates these funds in three different ways to accomplish identified activities within the City: 1) internal programs, 2) external programs, and 3) public service programs. HUD regulates the amount of CDBG funds that may be provided for public service programs. The amount may not exceed 15% of the City’s total allocation plus 15% of the current year’s program income. For FY 2024, the maximum allocation amount may not exceed $51,382. Through the annual public service RFP process, $51,000 is recommended for allocation to public services, as detailed below. This leaves $211,452 for internal and external housing programs as outlined below. 43 3. Budget Impact: NA 4. Attachments: CDBG Staff Report 2-24.pdf 2024 CDBG HRA Resolution 02.pdf 44 PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY STAFF REPORT TO: Plymouth Housing and Redevelopment Authority FROM: Steven Schmidt, Housing Manager MEETING DATE: February 22nd, 2024 SUBJECT: Community Development Block Grant (CDBG) – Hold Public Hearing on FY 2024 Program Year Allocations BACKGROUND: The Community Development Block Grant (CDBG) is a federally funded program administered by the U.S. Department of Housing & Urban Development (HUD). It’s intended to support community development activities to build stronger and more resilient communities. The CDBG program has three national objectives and in order for an activity to be eligible, it must meet one of the three national objectives listed below. 1. Benefit low- and moderate-income individuals 2. Aid in the prevention or elimination of slums or blight 3. Meet community needs that present a serious or immediate threat to the overall health or welfare of the community Since 1994, the City of Plymouth has annually received a CDBG allocation for being an entitlement community and a member of the Hennepin County Consortium. The HRA continues to carry out identified activities that best serve the housing and community development needs of the city. These activities include providing for preservation of the City’s housing stock, improving housing affordability, providing essential social services, and supporting fair housing activities. Staff anticipates for the 2024 program year, which runs from July 1, 2024, to June 30, 2025, HUD will allocate $262,452 to the City. The HRA allocates these funds in three different ways to accomplish identified activities within the City: 1) internal programs, 2) external programs, and 3) public service programs. HUD regulates the amount of CDBG funds that may be provided for public service programs. The amount may not exceed 15% of the City’s total allocation plus 15% of the current year’s program income. For FY 2024, the maximum allocation amount may not exceed $51,368. Through the annual public service RFP process, $51,000 is recommended for allocation to public services, as detailed below. This leaves $211,452 for internal and external housing programs as outlined below. 45 RECOMMENDATION: Staff recommends approval of Resolution No. 2024-02 after the Plymouth Housing and Redevelopment Authority holds a public hearing and considers any public comments related to the CDBG FY 2024 program allocations as noted in the table below and further described in this report: Table 1.1: Recommended Allocations for CDBG FY 2024 Agency Amount Requested Estimated 2023 Carryover Funds 2024 Funding Recommended Program Income Total Amount Available In t e r n a l Housing Rehab Programs NA $78,146 $32,452 $40,000 $150,598 First Time Homebuyer Program NA $0 65,000 $40,000 $105,000 CDBG Administration NA - $30,000 - $30,000 Ex t e r n a l Hammer Residences – Public Facilities Improvements $31,500 $17,143 $31,500 - $48,643 Homes Within Reach - Community Land Trust $50,000 $70,000 $50,000 - $120,000 Fair Housing Activities NA $4,000 $2,500 - $6,500 +1 05 Housing Program Total: $81,500 $169,289 $211,452 $ 80,000 $460,741 Lutheran Social Services $5,000 $1,684 $5,000 $6,684 Pu b l i c S e r v i c e PRISM $35,000 $3,151 $14,000 - $17,151 HOME Line $16,009 $6,375 $10,000 - $16,375 Interfaith Outreach $19,690 $8,000 $10,000 - $18,000 Senior Community Services $20,000 $0 $12,000 - $12,000 Public Service Total: $95,699 $19,210 $51,000 - $70,210 GRAND TOTAL: $177,199 $188,499 $262,452 $80,000 $530,951 46 HRA ADMINISTERED PROGRAMS: Staff recommends an allocation of $127,452 to HRA administered programs as further described below. The HRA administers two programs internally with CDBG funds: (1) First Time Homebuyer Program, (2) Housing Rehabilitation Program The FTHB program assisted three homebuyers with the purchase of a home in FY 2023. There was a total of 16 applications received which reflects a significant need for the assistance The housing market trend of low inventory and rising home prices will continue to make it difficult for potential home buyers to find properties that are affordable. Staff recommend allocating $65,000 in funds to the FTHB program in the 2024 program year to assist same number of buyer as in the previous year. The Housing Rehab Programs have assisted, on average, seven households per year over the past five years. Staff recommends allocating $32,452 to the Housing Rehab Programs, which along with expected program income and carryover funds should be sufficient to provide at least 4-6 rehab loans. Both the First Time Homebuyer and Housing Rehab Programs generate income from the repayment of deferred loans. Over the past couple of years, we’ve experienced a steady stream of repayments. Repayments occur when a homeowner moves or refinances their first mortgage. In FY 2023 (YTD), $36,940 of program income was received. Staff is conservatively budgeting $80,000 in FY 2024 for program income. Additionally, the HRA allocates a portion of CDBG funds towards administration costs of the CDBG grant. HUD regulates the amount of funds that can be spent on administration to no more than 20 percent of the total allocation plus current year program income. For FY 2024, the maximum allocation amount is $68,490. Staff requests that $30,000 be allocated for administration. 47 Table 1.2: Internal Programs Allocation for CDBG FY 2024 Housing Program Proposed Activity Estimated 2023 Carryover Funds 2024 Funding Recommendation Estimated Program Income Total Amount Available Housing Rehab Provide 6 deferred loans $18,146 $32,452 $40,000 $150,598 First Time Homebuyer Provide 3 loans to assist with down payment and closing cost assistance $0 $65,000 $40,000 $105,000 CDBG Administration Program Administration - $30,000 - $30,000 TOTAL: $18,146 $127,452 $80,000 $285,598 48 RECOMMENDATIONS FOR EXTERNAL PROGRAMS: Staff recommends an allocation of $84,000 to external administered programs as further described below. There are three external programs – (1) Hammer Residences, (2) Homes Within Reach Community Land Trust, (3) Fair Housing Implementation Council The Hammer Residences Public Facilities Improvements account assists with the rehabilitation of affordable long-term rental units for people with disabilities. Hammer Residences has a long history of working with the City and the HRA to provide affordable housing for adults with development disabilities. Staff recommends an allocation of $31,500 be awarded to Hammer Residences in FY 2024 to support their request of funds. Their request includes renovations and accessibility improvements to three homes. Work includes accessibility improvements to a bathroom by install a new step shower to increase mobility for the aging residents. Ramp repair in the front of the second home, this repair will allow caregivers to safely move the individuals into the home from outside. A drain tile system is needed in the third home. Merrimac is prone to flooding; the drain tile system will be installed around the inside perimeter of the basement to route the invading water into a sump pump. Homes Within Reach (HWR) helps low- and moderate-income families purchase homes at a reduced price through a community land trust. The land trust retains ownership of the land and sells the physical structure to an eligible buyer. In the 2021 program year, HWR purchased its first home in the City for inclusion in the land trust and another in FY 2022. Staff supports continuation of the land trust and recommends an allocation of $50,000 for HWR to purchase a home. In addition, the CDBG allocation will leverage other sources of funds from Hennepin County, Minnesota Housing, and other private organizations and donors to purchase and rehab a home. Finally, the City is a member of the Fair Housing Implementation Council (FHIC), which was established to coordinate a regional effort to ensure fair housing for all. The FHIC approved funding for three vendors who will undertake Fair Housing related activities during the 2024 program year. Staff recommends $2,500 be allocated for the continuation of this effort. 49 Table 1.3: External Programs Allocation for CDBG FY 2024 Housing Program Proposed Activity Amount Requested Estimated 2023 Carryover Funds 2024 Funding Recommendation Total Amount Available Hammer Residences – Public Facilities Improvements Assist with renovation of 2 affordable long-term rental homes with 8 total units for people with disabilities $31,500 $17,143 $31,500 $48,643 Homes Within Reach -Community Land Trust Supplemental grant funding to purchase another home $50,000 $70,000 $50,000 $120,000 Fair Housing Activities Outreach, education, and enforcement actives in the Consortium - $4,000 $2,500 $6,500 TOTAL: $81,500 $91,143 $84,000 $175,143 50 RECOMMENDATIONS FOR PUBLIC SERVICES: Staff recommends an allocation of $51,000 to public service activities as further described below. The HRA allocates a portion of CDBG funds to community organizations to undertake public service activities. These activities are directed towards low- and moderate-income individuals. Staff solicited five social service agencies to submit a public service application and also posted the Request for Funding application on the City website. Five agencies have requested CDBG funds to continue programs currently being supported by the City. Staff evaluated and ranked each proposal based on the following criteria: • Feasibility: the likelihood that the proposed project may be completed within the timeline proposed and within reasonable parameters of risk • Organizational Capacity: the likelihood of the organization being able to complete the proposed project • Leverage of Other Funds: the extent to which the proposal demonstrates the involvement of local partnerships and the extent to which other funds are leveraged Table 1.4: Public Service Programs Allocation for CDBG FY 2024 Agency Proposed Activity Amount Requested Estimated 2023 Carryover Funds 2024 Funding Recommended Total Amount Available PRISM Provide homelessness prevention services to 12 households $35,000 $3,151 $14,000 $17,151 HOME Line Provide a tenant hotline and represent tenants in negotiations to preserve affordable housing to 220 households $16,009 $6,375 $10,000 $16,375 Lutheran Social Services of MN Provide foreclosure prevention, rehab, prepurchase and reverse mortgage counseling to 50 households $5,000 $1,684 $5,000 $6,684 Interfaith Outreach Provide housing assistance and homelessness prevention to 5 residents $19,690 $8,000 $10,000 $18,000 Senior Community Services Provide minor home maintenance services for 56 senior residents $20,000 - $12,000 $12,000 TOTAL: $95,699 $19,210 $51,000 $70,210 51 ATTACHMENT 1 FY 2024 CDBG Action Plan Progress (as of 1/31/2024) Goals Progress FY 2023 Carryover FY 2024 Allocation Program Income Committed Funds Balance Rehabilitate 6 homes through deferred loans of up to $40,000 7 rehab loans in progress, $78,146 $32,452 $40,000 $32,452 $150,598 Provide 3 first time homebuyer deferred loans up to $35,000 12 clients pre-qualified 3 application were funded $0 $65,000 $40,000 $65,000 $105,000 Assist with the rehab of 2 affordable rental units operated by Hammer Residences, Inc. 3 units scheduled for rehab work to by completed early spring $17,143 $31,500 - $31,500 $48,643 Assist with the purchase of 1 home for Homes Within Reach’s land trust Search for home is ongoing $70,000 $50,000 - $50,000 $120,000 Provide 30 households homeownership and financial counseling services through Lutheran Social Services of MN 32 households served $1,684 $5,000 - $5000 $6,684 Provide services to 190 renters households through HOME Line 128 households served $6,375 $10,000 - $10,000 $16,375 Provide services to 65 seniors with the H.O.M.E (Household and Outside Maintenance for Elderly) program through S.C.S. 68 seniors served $0 $12,000 - $12,000 $12,000 Provide homelessness prevention assistance to 12 households through PRISM and Interfaith Outreach. 19 households served $3,151 $14,000 - $14,000 $17,151 Interfaith Outreach provides emergency housing assistance to prevent homelessness will prevent homelessness for 5-10 families. $8,000 $10,000 - $10,000 $18,000 Fair Housing Activities Outreach, education, and enforcement activities $4,000 $2,500 - $2,500 $6,500 CDBG Administration Administration Services - $30,000 - $30,000 $30,000 TOTALS: $188,499 $262,452 $80,000 $262,452 $530,951 52 ATTACHMENT 2 Summary of 2024 CDBG Public Service Funding Applications Lutheran Social Services of Minnesota (LSS) • Amount requested: $5,000 • Amount recommended: $5,000 LSS’ application is to provide financial coaching and counseling to residents of Plymouth. Their services help families and individuals move toward improved financial health and building/maintaining wealth. The focus of the counseling is for aspiring homeowners, current homeowners that express concerns about their mortgage or property taxes, and current homeowners interested in reverse mortgages. The goals set for the 2024 program year are to reach approximately 50 households with these services at income levels 35% at or below 50% of AMI and 65% between 51 and 80% of AMI. . LSS had demonstrated competent compliance with CDBG requirements, thus HRA staff is recommending fully funding LSS’s request. People Responding in Social Ministry (PRISM) • Amount requested: $35,000 • Amount recommended: $14,000 PRISM proposes to use CDBG funds to support its Homelessness Prevention programs for Plymouth individuals and families. The Homelessness Prevention program provides 0% interest loans and grants to families experiencing financial crises so that they can stay current on their rent or mortgage obligations and maintain stable housing while resolving the crisis. PRISM additionally provides one-on-one casework and financial literacy counseling to Plymouth residents. HRA staff recommend a lower award, in-line last year’s funding levels. HOME Line • Amount requested: $16,009 • Amount recommended: $10,000 HOME Line operates a tenant hotline staffed by 6 full-time attorneys (1 fluent in Spanish), 2 half-time attorneys, one full-time volunteer coordinator, 7 tenant advocates, six of whom are fluent in different languages (Spanish, Hmong, Somali, Portuguese and Tigrinya) and volunteer phone advocates (primarily law students from the three area law schools). The hotline logged a record 19,699 total calls last year. For over 20 years they have provided legal representation to renter families faced with eviction as part of their Homeless Prevention Program. The need and financial feasibility of the program was very defined and showed that the program would have an impact in the City. The goals for the 2023 program year are like last years. Staff is recommending decrease in funding, due to projected lower allocation amount. 53 Interfaith Outreach • Amount requested: $19,690 • Amount recommended: $10,000 Interfaith Outreach’s application is seeking assistance for its Emergency Financial Assistance program. The program provides individuals and families experiencing financial emergencies with financial assistance, supportive services and connections to internal and external resources to support continued movement toward financial stability. Interfaith Outreach’s application scored lower due to no leveraged funds or partnerships. HRA staff is recommending a slight reduction in funding compared to recent years. Senior Community Services (SCS) • Amount requested: $20,000 • Amount recommended: $12,000 SCS’s application is to provide outside maintenance for the elderly through their Household and Maintenance for Elderly (H.O.M.E.) program. H.O.M.E. services include: lawn mowing, snow removal, exterior interior painting, seasonal outdoor work (raking, pruning, weeding, mulching), minor repairs (leaky faucets, door handles, replace light bulbs), disability related projects (installing grab bars) and homemaking (dishwashing, laundry, grocery shopping, meals and cleaning). HRA staff are recommending a funding amount with a slight decrease from previous years due to less allocation amount anticipated. ATTACHMENTS: 1. FY 2024 CDBG Action Plan Progress 2. Summary of 2024 CDBG Public Service Applications 3. Resolution No. 2024-02 54 CITY OF PLYMOUTH HRA RESOLUTION 2024-02 A RESOLUTION TO APPROVE THE APPLICATION AND ALLOCATION OF FISCAL YEAR 2024 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS WHEREAS, the City of Plymouth, as an entitlement community, participates in the Community Development Block Grant Program; and WHEREAS, the City of Plymouth has developed a proposal for the use of CDBG funds, and held a public hearing on February 22nd, 2024, to obtain the views of citizens on the proposed use of $262,452 in grant funding plus $80,000 in anticipated program income funds for the 2024 Community Development Block Grant Program; and WHEREAS, the Housing and Redevelopment Authority in, and for the City of Plymouth, MN, has determined the following to be an appropriate use of Community Development Block Grant funds in accordance with federal guidelines and the City’s HUD approved Consolidated Plan; NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF PLYMOUTH, MINNESOTA, that it hereby recommends that the City Council authorize the City Manager to apply for 2024 Community Development Block Grant funds totaling $262,452 in addition to $80,000 in anticipated program income totaling $342,452 from the U.S. Department of Housing and Urban Development with the following allocations: 1. Housing Rehabilitation Grant/Loans 32,452.00 2. First Time Homebuyer Program 65,000.00 3. Program Administration 30,000.00 4. Hammer Residences 31,500.00 5. Community Land Trust 50,000.00 6. Lutheran Social Services of MN 5,000.00 7. Fair Housing Activities 2,500.00 8. PRISM 14,000.00 9. HOME Line 10,000.00 10. Interfaith Outreach 10,000.00 11. Senior Community Services 12,000.00 Total $262,452.00 BE IT FURTHER RESOLVED, that it is hereby recommended to the City Council that all CDBG program income may be used to cover expenses generated in any existing CDBG program or activity and not just expenses related to the activity generating the income, unless otherwise reallocated by the City Council. BE IT FURTHER RESOLVED, that it is hereby recommended to the City Council that all unexpended 2023 CDBG funds be allocated to an eligible activity in 2024, unless otherwise reallocated by the City Council. 55 Approved this 22nd day of February 2024 by the Plymouth Housing and Redevelopment Authority. Michelle Soderberg, Chair Grant Fernelius, Executive Director 56 Regular Housing and Redevelopment Authority February 22, 2024 Agenda Number:6.1 To:Housing and Redevelopment Authority Prepared by:Grant Fernelius, Community and Economic Development Director Reviewed by:Grant Fernelius, Community and Economic Development Director Item:Presentation on Plymouth Tax Increment Financing (TIF) Program 1. Action Requested: Staff and Ehlers will provide a presentation on the City's Tax Increment Financing (TIF) program. 2. Background: The HRA has requested additional information and learning opportunities on Tax Increment Financing (TIF). TIF is a municipal development tool used for a variety of housing, redevelopment and environmental clean-up purposes. The City and HRA have utilized TIF for a number of years and currently have seven (7) active districts. Five are sponsored by the City and two by the Plymouth HRA. Staff has arranged for Stacie Kvilvang, Senior Municipal Advisor with Ehlers to provide a presentation on TIF 101 basics, an overview of the City's TIF program, potential uses of pooled TIF for affordable housing and recommendations on TIF District 1-2. Ehlers assists the City in managing its TIF program, including periodic updates of a TIF Management Report that provides compliance information and other recommendations. Attached is an Executive Summary that Ehlers has prepared. The presentation will include key takeaways from the report. 3. Budget Impact: N/A 4. Attachments: Plymouth Management Review Analysis TIF Districts - Executive Summary - FINAL 57 January 2024 TIF DISTRICT MANAGEMENT REVIEW & ANALYSIS – EXECUTIVE SUMMARY: City of Plymouth, MN Tax Increment Financing Districts Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, Minnesota 55113 BUILDING COMMUNITIES. IT’S WHAT WE DO. 58 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 2 Table of Contents OVERVIEW ................................................................................................................................................................................... 3  TIF DISTRICT SUMMARY ...................................................................................................................................................................... 6  TIF AS A DEVELOPMENT TOOL ........................................................................................................................................................ 8  TIF FOR AFFORDABLE HOUSING ................................................................................................................................................... 10  IMPACT OF DECERTIFIED AND AFFORDABLE HOUSING POOLING TIF DISTRICTS ......................................................... 13  RECOMMENDATIONS .......................................................................................................................................................................... 14  59 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 3 OVERVIEW Tax increment is a financing tool authorized by state law, that allows an authority to capture and use most of the increased local property tax revenues from new development within a defined geographic area for a defined period of time. The management of TIF districts is an ongoing activity and requires administrative oversight for reporting to the State, tracking parcel information, maintaining compliance with use restrictions in the TIF law and the development agreements, and matching TIF revenue to debt service. In general, tax increment revenues are used to pay for eligible project costs which encourage creation or retention of jobs, redevelop blighted areas or polluted sites and construction of affordable housing. Revenue from tax increment financing (TIF) districts is a financial asset of the City. This revenue tool allows the City to address blight, contamination, housing or redevelopment needs for the parcels in the TIF district for a specified period of time. The revenues from the districts within the City are largely site specific, meaning that the revenues are restricted by law and/or by contract with the developers. The revenue generated is first used to pay debt service on outstanding bonds, interfund loans and developer pay-as- you-go notes (PAYGO). A portion, but not all, of the remaining revenues can be used to participate in other eligible development projects and City initiatives. Over the years, the City utilized unobligated revenues from older TIF districts to complete the following projects:  Westview Estates - $600,000 30-year deferred loan  HRA Vicksburg Crossing senior housing facility – 10% pooling for bonds, if needed  Annual capital improvements to Plymouth Town Square Apartments  Cranberry Ridge Apartments - $250,000 grant and $527,000 30-year deferred loan The City has proactively utilized TIF to spur significant redevelopment within the City and to create options for an industrial park, retail uses and life- cycle housing including different tenure of housing and affordable units. In 1995 the City began investing in public/private partnerships for job creation, affordable housing and redevelopment, with the first district being a redevelopment tax increment district for Plymouth Technology Park (7- 4 Hoyt) to complete public infrastructure improvements. Since that time, the City/HRA has invested (TIF PAYGO Notes issued) approximately $17.45 million. Of the $17.45 million invested, the current taxable market value is approximately $186.7 million. Below is a chart showing total residential units and/or commercial/industrial uses that are or under construction: 60 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 4 Use Total Units or Sq. Ft. Market Rate Affordable % Affordable TIF Investment Residential 795 458 337 42% Commercial 257,652 Industrial 194,418 17,453,145$ N/AN/AN/A Overall, the City’s TIF districts have met their intended purpose, performed well, and furthered other City projects as noted above. In summary: 1. Number of Districts. The City has created ten (10) TIF Districts since 1995. Three (3) districts are decertified (7-4 Hoyt, 1-1 Shops at Plymouth Creek and TIF 7-6 Berkshire). The following chart summarizes the remaining seven (7) TIF districts by type: Type of District Administrative Authority Number Housing HRA 1 Housing City 4 Redevelopment HRA 1 Redevelopment City 1 TOTAL 7 2. Increase in Market Value. The overall market value of the City’s six (6) TIF districts where development is complete and generating tax increment (excludes TIF District 7-11 Doran since it is not yet generating TIF) has increased approximately 854 percent since their establishment (see chart on page 9). 3. Tax Capacity Captured in TIF. In 2024, the City has approximately .6% of its tax capacity captured in TIF districts. Over the next five (5) years this is expected to decline to less than ½ percent, if no new TIF districts are created (see chart on page 10). 4. Redevelopment TIF Districts and Affordable Housing. To date, the City has elected to retain an additional 10% of the TIF in two (2) of its four (4) redevelopment districts (7-6 Berkshire and TIF 1-1 Shops at Plymouth Creek) for affordable housing. This allowed the City to retain 35% of the TIF for this purpose (total of approximately $1.9 million) and provides a crucial funding source that can assist the City in meeting its affordable housing goals. The City has decertified these two districts since they have collected the maximum dollars and is retaining 61 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 5 those funds in the respective TIF districts until qualified projects are identified. The City can make the election to retain an additional 10% for affordable housing in its other two redevelopment districts if it chooses (TIF 7-8 Quest and TIF 1-3 Plymouth Crossroads). 5. Pooling For Redevelopment. The City has approximately $727,000 in TIF District 7-4 (Hoyt) available for redevelopment pooling anywhere in the City. 6. Returned Increment. The City will be returning approximately $2.319 million from three (3) of its decertified districts noted in the chart below. This increment has to be returned since they were decertified and the City has collected the maximum amount allowed for affordable housing (TIF 1-1 (Shops at Plymouth Creek, and TIF 7-6 (Berkshire)) and the maximum allowed for legal pooling for redevelopment (7-4 (Hoyt)). The County will redistribute the dollars back to the various taxing jurisdictions and the City’s proportionate share of these dollars is expected to be approximately $678,000. These are unrestricted dollars and the City will utilize them for General government purposes. District Amount Returned City Portion 1-1 Shops at Ply 516,583$ 151,838$ 7-4 (Hoyt)550,076$ 158,462$ 7-6 Berkshire 1,252,000$ 367,998$ TOTAL 2,318,659$ 678,299$ 7. Financial Health of TIF Districts. The City’s TIF districts are self-supporting, and most districts are anticipated to fully pay off their obligations to developers ahead of their term. No general fund dollars have been used to supplement TIF obligations to date, nor are they expected to. 8. City Bond Rating. Projects assisted with TIF are making a substantive contribution to the City’s economy, taxable market value, affordable housing goals and its AAA bond rating. Management of the City’s TIF districts are regularly monitored by Ehlers and City staff and annual reports on the financial condition of each TIF district are filed with the State Auditor’s Office. While the EDA’s use of TIF is positively contributing to the City’s economic vitality, it will need to continue monitoring the desire to keep districts open to fund affordable housing goals versus utilizing those captured dollars to reduce the financial impacts to taxpayers. 62 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 6 TIF DISTRICT SUMMARY Currently the City has seven (7) active TIF districts. TIF 7-5A TIF 7-7 TIF 7-8 TIF 1-2 TIF 1-3 Village at Stone Creek Quest Vicksburg Plymouth Bassett Creek Village Development Commons Crossroads TIF Authority City City City City City HRA HRA District Type Housing Housing Redevelopment Housing Housing Qualified Housing Redevelopment Project 71 for-sale town homes & 46-unit senior apartments with 45 units affordable at 50% AMI 130-unit Stone Creek Village Apartments 157-Unit City Flats Apartments 61-unit Affordable Apartment Building 176-Unit Bassett Creek Apartments (20%, or 35 units affordable at 50%AMI) 50-unit rental town homes 90-unit sr. assisted living facility, McDonalds & Caribou Coffee Certified 4/16/1999 6/6/2002 2/28/2011 7/17/2020 4/27/2023 7/17/2006 5/10/2007 Legal Max Term 12/31/2026 12/31/2028 12/31/2040 12/31/2047 12/31/2049 12/31/2033 12/31/2033 Anticipated Term 12/31/2026 12/31/2028 12/31/2026 12/31/2047 12/31/2049 12/31/2033 12/31/2026 Keep Open for Pooling for Aff. Hsg. Yes Yes TBD Yes Yes Yes TBD 1st Increment 2001 2003 2015 2023 2024 2008 2008 Current Obligations None $236,000 30-year deferred loan and $688,000 Interfund Loan to HRA General Fund $2,500,000 PAYGO Note to 169/55 LLC $459,000 PAYGO Note to Plymouth Element, LLC and $475,000 interfund loan from TIF 7-6 (but only $244,000 drawn to date) $5,300,000 PAYGO Note to DC-OV BassettCreek LLC None $1,899,645 PAYGO Note to Minnwest Bank Metro Other Uses Unlimited pooling for affordable housing as long as existing project maintains affordability and reports to City Unlimited pooling for affordable housing as long as existing project maintains affordability and reports to City Up to 25% for legal pooling for other redevelopment projects Unlimited pooling for affordable housing as long as existing project maintains affordability and reports to City Up to 25% for legal pooling for other redevelopment projects Unlimited pooling for affordable housing as long as existing project maintains affordability and reports to City Up to 25% for legal pooling for other redevelopment projects 2023 TIF Revenue $249,327 $230,910 $447,979 $11,070 $0 $34,873 $207,256 District TIF 7-10 (Sands) TIF 7-11 (Doran) 63 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 7 OBLIGATIONS OF THE TIF DISTRICTS The revenues from these districts are largely site specific, meaning that the revenues are restricted by law and by contract with the developers. The revenues must be used primarily to address blight, contamination, housing or redevelopment needs for the parcels in the TIF district within a specified period of time. The City has the following obligations outstanding (after the February 1, 2024 payments were made): District Note Amount Outstanding After 2/1/2024 1-3 Plymouth Crossroads Minnwest Bank Metro 1,899,645$ 451,994$ 7-8 Quest Development 169/55 LLC (Quest)2,500,000$ 969,412$ TOTAL OBLIGATIONS ISSUED 4,399,645$ 1,421,406$ 7-10 Sands Sands Company 459,000$ 459,000$ 7-11 Doran DC-OV BassettCreek LLC 5,300,000$ 5,300,000$ TOTAL OBLIGATIONS NOT ISSUED 5,759,000$ 5,759,000$ GRAND TOTAL 10,158,645$ 7,180,406$ District Loan Fund Amount Outstanding After 8/1/2023 7-10 Sands TIF 7-6 241,000$ 241,000$ TOTAL 241,000$ 241,000$ Pay As You Go Obligations Interfund Loans After 8/1/2023 64 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 8 TIF AS A DEVELOPMENT TOOL Continuous redevelopment is vital to maintaining the City’s long-term economic health and vitality. Plymouth has judiciously utilized TIF for key redevelopment and housing projects since 1995 when TIF District 7-4 (Hoyt) was established. Utilizing this tool to accomplish the various community development goals of the City has optimized land uses, strengthened the tax base and diversified housing options, while cleaning up contaminated sites and increasing employment opportunities. One immediate benchmark of the benefit of utilizing TIF is the overall increase in market value from when the district was created to when it is fully developed and aging. As indicated in the following table, the overall market value of the City’s TIF district portfolio has increased by 854% (Districts that are active, and collecting TIF): District Original Market Value Pay 2023 Market Value Percent Increase in Valuation TIF 1-2 Vicksburg Commons 1,487,700 11,115,000 647.13% TIF 1-3 Plymouth Crossroads 2,544,100 21,186,000 732.75% TIF 7-5 Village at Basset Creek 749,694 29,190,531 3793.66% TIF 7-7 Stone Creek Village 296,000 25,544,000 8529.73% TIF 7-8 Quest Development 1,244,900 40,282,000 3135.76% TIF 7-10 Sands 443,000 10,873,000 2354.40% ** TIF 7-11 Doran 1,271,250 4,520,000 255.56% ** TOTAL 8,036,644 142,710,531 854.27% ** This District is excluded from the calculation since it is still under construciton at the time of this report   While there are undoubtedly many benefits to utilizing TIF as a development tool, cities still wonder if they are utilizing the tool too much or not enough. A city’s use of TIF should be independent from comparison to like size or neighboring cities. It should be balanced between a community’s strategic priorities/goals and an appropriate level of taxation. To quantify a community’s use of TIF, a common benchmark or measure is the percentage of the gross tax base captured in TIF districts. The charts on the following page demonstrates the City’s current and projected tax base, which is captured in TIF districts, and provides a comparison to other communities. 65 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 9 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Current Districts TIF 1-1 Shops at Plymouth Creek 216,188 233,561 246,364 223,982 251,117 0 0 0 0 0 TIF 1-2 Vicksburg Commons 41,386 47,486 52,464 55,224 38,784 38,901 0 0 0 0 TIF 1-3 Plymouth Crossroads 190,716 193,414 212,893 214,236 229,967 236,587 238,953 241,342 0 0 TIF 7-4 Hoyt 300,061 357,413 382,847 367,946 0 0 0 0 0 0 TIF 7-5A Village at Basset Creek 194,874 211,547 224,957 235,449 253,238 277,507 259,907 262,506 0 0 TIF 7-6 Berkshire 369,770 370,750 397,990 397,990 450,930 0 0 0 0 0 TIF 7-7 Stone Creek Village 204,216 236,103 257,420 259,843 254,720 258,218 241,217 243,629 246,065 248,526 TIF 7-8 Quest Development 343,979 371,631 445,401 445,401 487,963 487,963 492,843 497,771 0 0 TIF 7-10 Sands 0 0 0 1,712 12,212 52,145 52,666 53,193 53,725 54,262 TIF 7-11 Doran 0 0 0 0 0 53,125 450,450 600,600 606,606 612,672 Total Captured 1,861,190 2,021,905 2,220,336 2,201,783 1,978,931 1,404,446 1,736,036 1,899,042 906,397 915,460 Total Tax Capacity (Gross)146,743,414 157,825,815 167,827,497 173,272,391 201,681,360 219,125,371 221,316,625 223,529,791 225,765,089 228,022,740 Percentage of Tax Base in TIF 1.3% 1.3%1.3% 1.3% 1.0%0.6% 0.8% 0.8% 0.4% 0.4% * Assumes 1% annual increase in tax base and TIF ProjectedActual Bloomington 3.1%38.013% AAA/Aaa Edina 1.2%28.056% AAA/Aaa Minnetonka 1.7%33.922% Aaa Golden Valley 2.0%53.407% Aa1 Eden Prairie 1.7%28.904% AAA Plymouth 1.0%24.307%AAA Brooklyn Park 1.2%42.380% AA+ Maple Grove 1.0%26.902%AAA PopulationComparable City Pay 23 City Tax Rate Captured TIF as a % of Tax Base Bond Rating 84,526 70,726 89,298 52,437 52,554 21,545 63,161 79,828 As noted, the City’s use of TIF is lower compared to other similar suburbs. Although this is a small sample of municipalities, the amount of TIF used by a City does not correlate directly with a City’s tax rate or bond rating. However, in conversations with rating agencies, we do know that market value growth and redevelopment are important factors in maintaining Plymouth’s AAA bond rating. 66 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 10 TIF FOR AFFORDABLE HOUSING General The rules for utilizing TIF for affordable housing are complex. Plymouth has used TIF from several sources to assist affordable housing developments. The statutory authorities for each case are outlined below: 1. Special Pooling Provision for Housing. Minnesota Statutes, Section 469.1763, subdivision 2(d), allows the EDA/City to pool up to an additional 10% above the standard allowable limit for owner-occupied housing that meets the income qualifications noted in #2 below and rental housing that meets low-income housing tax credit requirements (the projects do not need to receive tax credits, they just need to be tax credit eligible, meaning they are both rent and income restricted). Eligible uses include acquisition and site preparation, construction, rehabilitation and public improvements directly related to the housing, as long as these costs were not funded through tax credits (does not apply if all eligible expenses are funded through tax credits). The funds can be spent anywhere within the City and do not need to be located within a Project Area. The income and rent guidelines are defined as follows: Rental Housing: 20% of the units occupied by families at 50% of area median income (AMI) (20/50) or 40% of the units occupied by families at 60% of AMI (40/60) and rents for all the income-restricted units must not exceed 30% of the applicable income limit (see income charts below). 1 2 3 4 5678 50%43,500 49,700 55,900 62,100 67,100 72,050 77,050 82,000 60%52,200 59,640 67,080 74,520 80,520 86,460 92,460 98,400 Studio 1 2 3 4 5 6 50%1,087 1,165 1,397 1,615 1,801 1,988 2,173 60%1,305 1,398 1,677 1,938 2,161 2,385 2,608 Income Limits by Household Size (2023) Maximum Gross Rents by Bedroom Size (2023) 67 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 11 For a redevelopment district the total pooling may be up to 35%. This pooling, pursuant to Minnesota Statutes, Section 469.176 subdivision 4k, can be done without regard to project area/development district limitations. The EDA/City would not implement this pooling until the obligations in the various TIF districts are paid off since typically 90% of the TIF is pledged to the obligation. 2. Pooling from Housing Districts. A housing district is established for either rental or owner-occupied housing. The rental housing developments are income limited to those noted in #1 above. The owner-occupied housing is limited to 100% of AMI ($124,200 for 2023) for families of two or less, or 115% AMI ($142,380 for 2023) for families of three or more. The rental housing restrictions remain for the life of the TIF district while the owner-occupied restrictions apply only to the first occupants. If excess funds from a housing district are realized, then 100% of the tax increment may be pooled for other housing projects that meet the income limitations listed above, as long as the housing within the District either met the test with the first occupant (owner-occupied projects only) or the development agrees to continue to keep the units affordable and continue to provide annual reports to the City (rental projects only). This pooling can be done without regard to project area and development district limitations. (Rest of this page left intentionally blank) 68 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 12 TIF District Sources The five (5) TIF Districts from which the City and HRA could fund affordable housing are summarized in the table below. Based upon this table:  The districts shaded in blue are housing districts where the City has always allowed these districts to remain open to capture 100% of the TIF for affordable housing.  The districts in white are redevelopment districts where the City has already elected to retain the additional 10% for affordable housing. Year 1-1 (Redevelopment)1-2 (Housing) 7-5A (Housing)7-6 (Redevelopment)7-7 (Housing)Annual Total Cumulative To Date 1,025,856$ 26,874$ -$ 893,139$ -$ 1,945,869$ 2023 -$ 19,285$ -$ -$ 96,206$ 115,491$ 2,061,360$ 2024 -$ 34,978$ 254,769$ -$ 217,748$ 507,495$ 2,568,855$ 2025 -$ -$ 238,611$ -$ 219,926$ 458,537$ 3,027,392$ 2026 -$ -$ 238,611$ -$ 222,125$ 460,736$ 3,488,128$ 2027 -$ -$ -$ -$ 224,346$ 224,346$ 3,712,474$ 2028 -$ -$ -$ -$ 226,590$ 226,590$ 3,939,064$ Total 1,025,856$ 81,137$ 731,991$ 893,139$ 1,206,941$ 3,939,064$ Pooling for Affordable Housing 69 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 13 IMPACT OF DECERTIFIED TIF DISTRICTS One frequent question we receive is what are the additional levy dollars the City can expect to receive from future TIF districts after they are decertified? The City will see the gradual decertification of five (5) TIF districts over the next five (5) years as noted in the chart below. These districts, when decertified, will return value to the tax rolls for general taxing purposes, and the City will see a corresponding increase in its tax base. The table below shows how much more the City could levy and still maintain a stable tax rate over the next 10 years. The additional tax capacity freed up by decertifying districts allows the city to set the levy to cover operational and debt needs without directly increasing the property tax impact on taxpayers. TIF District Decertifies 2025 2027 2029 2034 1-2 Vicksburg Commons 12/31/2024 27,930 - - 38,784 1-3 Plymouth Crossroads Station 12/31/2026 - 241,342 - - 7-5 Village at Bassett Creek 12/31/2026 - 262,506 - - 7-7 Stone Creek Village 12/31/2028 - - 248,526 - 7-8 Quest Development 12/31/2026 - 497,771 - - Total Annual Captured Net Tax Capacity Returned to Tax Rolls 27,930 1,001,620 248,526 38,784 City Tax Rate for Taxes Payable in 2023 (1)24.307% Estimated Additional Annual Tax Levy Available (1)6,789$ 243,464$ 60,409$ 9,427$ (1) - Assumptions: - Calculates additional dollars the City could levy and still maintain the same tax rate as Pay 2023. - Assumes no change in existing tax base from prior year - Assumes no change in the Fiscal Disparities Distribution Dollars from Pay 2023 Projected 70 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 14 RECOMMENDATIONS The updated financial analysis of the City’s TIF Districts offers the following recommendations for consideration by the City’s HRA and City Council: 1. Decertify Housing TIF District 1-2 (Vicksburg Crossing). The City made the final PAYGO Payment on August 1, 2023. Due to the new reduction in the 4d affordable housing tax classification for pay 2025, the annual TIF generated from the project will decrease by approximately 50% to $11,700. Since the TIF generated is fairly small, we recommend decertifying the district by the end of 2024 (legal term is December 31, 2033) since the City will have other resources with less restrictions available to them for affordable housing. 2. Keep Housing TIF District 7-5A (Village at Basset Creek) Open Through Legal Term of District. The obligation for TIF District 7-5A (Village at Bassett Creek) was paid in full on February 1, 2023. The senior apartments continue to maintain the units as 45 of the 46 units affordable to persons at or below 50% of the area median income and provides annual reports to the City. We recommend that the City continue to keep the District open through its legal term of 2026 to retain dollars for affordable housing (approximately $238,000/year). 3. Election to retain an Additional 10% for Affordable Housing: We recommend making this election in 2024 in TIF Districts 1-3 (Plymouth Crossroads) and 7-8 (Quest Development). See chart on following page for more detailed recommendations and actions required by District: 71 TIF District Management Review & Analysis – Executive Summary January 2024 Plymouth, Minnesota Page 15 District Type Recommendation Actions Required Utilize 10% of TIF for rental, tax credit eligible housing, City-owned rental facilities or owner-occupied housing Remaining pooling dollars of $258,129 to be retained in the TIF fund until expended on a qualifying project Utilize 25% for redevelopment projects Remaining pooling dollars is $767,727 to be retained in the TIF fund until expended on a qualifying project (can also be spent on affordable housing) 1-2 (Vicksburg Commons)Housing Decertify district in 2024 City Council resolution for early decertification Modify TIF plan for additional 10% for tax credit eligible rental housing Review plan for budget capacity and type of amendment required (administrative or public hearing). Estimated $1.454M available by 2032. Decertification of District in 2026, if no 10% election made None at this time Determine use of legal pooling dollars (approximately $380,000) if no 10% election is made Identify project/use or retain balance in TIF account Determine use of legal redevelopment pooling dollars Identify project/use or retain balance in TIF account ($727,366) Determine if $600,000 deferred loan to West View Estates, LLC will be forgiven Determine if deferred loan will be forgiven Annual income verification Review of annual submittal by developer Keep district open after obligation is paid off in 2023 and use TIF generated in 2024-2026 for affordable rental or owner-occupied housing projects Identify project/use or retain balance in TIF account (Approx. $690K) 7-6 (Berkshire) Redevelopment Utilize 35% of TIF for rental, tax credit eligible housing or City-owned rental facilities or owner-occuped housing Remaining pooling dollars of $893,000 to be retained in the TIF fund until expended on a qualifying project Use of increment for affordable rental or owner-occupied housing Identify projects/uses or retain balance in TIF account (estimated at $1.2M by 2028) Annual income verification Review of annual submittal by developer 7-8 (Quest Development) Redevelopment Modify TIF plan for additional 10% for tax credit eligible rental housing Review plan for budget capacity and type of amendment required (administrative or public hearing). Estimated $1.79M by 2029. 7-10 (Sands)Housing None at this time None at this time 7-11 (Doran)Housing None at this time None at this time 1-1 (Shops at Plymouth Creek)Redevelopment 1-3 (Plymouth Crossroads)Redevelopment 7-7 (Stone Creek Village) Housing 7-4 (Hoyt) Redevelopment 7-5A (Village At Bassett Creek)Housing 72 Regular Housing and Redevelopment Authority February 22, 2024 Agenda Number:7.1 To:Dave Callister, City Manager Prepared by:Grant Fernelius, Community and Economic Development Director Reviewed by: Item:Staff Updates 1. Action Requested: Receive update from staff on various projects and activities. 2. Background: Staff is providing the attached update on Community and Economic Development (CED) Department activities for January 2024. In addition, you'll find a copy of CED 2023 Annual Report and HRA 2024 Work Plan. 3. Budget Impact: N/A 4. Attachments: HRA Updates (February 2024) Econ_Dev_Annual_Report_2023 2024 Work Plan (HRA) 1-25-2024 73 MEMORANDUM DATE: February 16, 2024 TO: HRA Commissioners FROM: Grant Fernelius, CED Director/HRA Executive Director SUBJECT: Updates for February 2024 Dietrich Development Image courtesy of Kaas Wilson Architects On February 6th Dietrich Development received approval for a mixed-use (apartments and retail) project on a vacant site near 10th Avenue and South Shore Drive. This parcel is often referred to as the John Allen site, the developer who originally bought the property in the 1990’s. The project includes 330 units of apartments and a small amount of stand-alone retail. While the project will not involve any city financial assistance, the developer has indicated that 74 roughly 2/3 of the units will be affordable to households earning 80% of the area median income. The developer is still working through final details but hopes to break ground later this year. The project will serve as an important catalyst in the redevelopment of the Station 73 project area and help support various transit investments that are being made, including a pilot Bus Rapid Transit (BRT) project along Highway 55 from downtown Minneapolis to City Center in Plymouth. Prudential Redevelopment Image courtesy of Scannell Properties and Roers Companies 75 Scannell and Roers Co. have submitted their land use applications which will be reviewed by the Planning Commission at their February 21st meeting. The proposal includes a mix of apartments, restaurants, retail shops, a grocery store, med tech businesses and a medical office user. Summit Orthopedics has announced their intent to build a state-of-the art orthopedic surgery and rehab facility (shown as C402 on the above image). The developer has already started pre-demolition work which is expected to take 6 weeks. The building will be completely recycled and re-used on-site. Harbor Lane Proposal Image courtesy of Doran Companies Doran Companies has acquired four office buildings on Harbor Lane just north of Highway 55 and Fernbrook Lane. The developer presented a sketch plan concept to the city council on January 23rd. The project will include more than 300 units of housing. The city council provided feedback and initial support for Comprehensive Plan changes that will be needed for the project to move forward. More details will be shared in the coming months. 76 Wren on the Creek Apartments Photo courtesy of City of Plymouth (CED) Doran Companies is nearing completion of a new mixed-income apartment building (Wren on the Creek) near 6th Avenue and Highway 55 adjacent to the Waterford Plaza shopping center. The 176-unit complex with 20% affordable units is expected to open this June. Parkera Development (Former Dundee Nursery) The City granted a 2-year extension to the PUD approval for Parkera in October 2023. Staff has not received any updates from the developer on the status of the project. 77 The Brooks Apartments Enclave Companies has begun footing and foundation work on a new apartment building near Nathan Lane and Bass Lake Rd. The 219-unit complex is expected to open in late 2024 or early 2025. Four Seasons Mall Staff continues to talk with developers about the former Four Seasons Mall site. At least one developer has expressed more serious interest in the property. Additional details will be shared as those conversations proceed. Housing Updates Staff continues to administer approximately 290 Vouchers t hroughout the Plymouth Community. Staff is working to update the Administrative Plan to include required changes to the operation of the Program. The Housing Opportunity Through Modernization Act, (HOTMA) will go into effect January 1st, 2025, and will implement substantial changes to the income and asset calculations for program participants. In addition, the Housing Quality Standards (HQS) inspection format will change to National Standards for the Physical Inspection of Real Estate (NSPIRE). The new NSPIRE model prioritizes health, safety, and functional defects over appearance. It implements inspections that better reflect the true physical conditions of the property. Both HOTMA and NSPIRE changes will affect the process and implementation of our HVC and CDBG programs. Staff continues to wait for further guidance from HUD. Implementation for NSPIRE is scheduled for October 1, 2024 Staffing Updates We are pleased to report that new staff will join the housing division in CED. Denise Fletcher will serve as a Housing Specialist and report to Steven Schmidt. Denise has experience in housing management, including senior housing and HUD programs. Denise will start on February 26th. With Denise’s hiring the Housing Division is back to full-staffing. CED Annual Report Staff has published the 2023 CED annual report. The document is attached for informational purposes. It can also be found on the city’s website. Special thanks to CED staff members 78 Chloe McGuire and Tyler Parsons and Communications staff Brian Rosemeyer for their great work on the report. Inclusionary Housing Policy The Inclusionary Housing Policy is tentatively scheduled for discussion with the City Council on March 26th at 5:00 PM. HRA Work Plan Chair Soderberg will present the HRA’s 2024 Work Plan to the City Council on February 21st. The plan has been updated to reflect the feedback provided by the commissioners at the study session in January. Upcoming Meetings Staff has tentatively scheduled a presentation by Homes Within Reach for the March 28th HRA meeting to discuss a potential opportunity to sell two of the HRA’s scattered site rental properties (Garland Lane). Homes Within Reach is a housing land trust and operates in the western suburbs of Hennepin County. Plymouth has funded the organization in the past with CDBG dollars. In addition, staff met with representatives from ODC about their interest in the properties, however the organization does not have a specific plan at this point. If there is interest from the HRA in learning more, staff would recommend scheduling a separate date to discuss what ODC might propose. 79 Prepared by the City of Plymouth Community and Economic Development Department 80 1Plymouth Economic Development // 2023 Annual Report The Community Development Department is proud to help implement the City Council’s strategic priorities involving City Center 2.0, Redevelopment, Environmental Stewardship, and being a City of Choice. There were a number of key accomplishments in the last year that demonstrate progress made in these areas. For example, the City Council, Planning Commission and staff worked on policy changes that will make development in City Center more vibrant, including new design standards that promote a greater emphasis on housing, retail shopping, pedestrian connectivity/ safety, amenities, public art and improved livability. The city also recognizes that there is less vacant land, and future growth will focus on infi ll development and redevelopment of existing sites. In 2023, the city helped defi ne a new vision for redevelopment of the former Prudential site into a new mixed-use neighborhood that will include housing, retail, medical offi ce and med-tech businesses. Several other projects were approved that will result in additional housing and business investment in the community. The city continues to promote the value and importance of small businesses, which provide jobs and economic opportunity. And the city’s Housing and Redevelopment Authority (HRA) worked on developing policies to promote more affordable housing to serve all residents. Our 2023 Annual Report aims to not only share the city’s accomplishments in community, housing and economic development, but to highlight areas of opportunities and the foundation being established for continued economic growth in Plymouth. I am proud to serve with a dedicated group of professionals who strive to provide the highest quality of service to our community. We hope our work continues to positively impact the lives of residents and businesses throughout Plymouth. Sincerely, Grant Fernelius Community & Economic Development Director 81 2Plymouth Economic Development // 2023 Annual Report Plymouth is a nationally recognized city located just 12 miles west of Minneapolis. Plymouth has built a reputation as a thriving community offering an excellent quality of life, fi rst- rate park system, picturesque open-spaces, highly regarded school districts, and innovative companies and industries. Boasting Minnesota’s fourth largest economy, the city is home to an established commercial-industrial base, a thriving med-tech scene, and access to talent from University of Minnesota, Saint Cloud State University, and several other private universities. Plymouth is committed to being a trusted partner that provides resources, cultivates business growth, and fosters community identity through its economic development strategies. As the city continues its transformation to an industry leader in the region, the Community and Economic Development Department aims to present regular updates on projects, new business openings and expansions, and future opportunities. • Total population: 81,000+ • Daytime population: 95,175 • Total households: 32,118 • Median household income: $119,813 • Annual average wages in Plymouth: $86,120 • 4th largest economy in Minnesota • Lowest tax rate of peer cities • Total jobs: 55,000 • 63% of residents have a college degree Demographics 82 3Plymouth Economic Development // 2023 Annual Report • Over $500 million in new construction value in 2023 • Minnesota Investment Funds Completed in 2023: • Energy Management Collaborative • Silk Road Medical • 217 Jobs Created from MIF • Average salary of $50/hour* • 30+ business tours and site visits completed by city staff • 134 new residential home permits issued *per MIF reporting Community Investment Source: Quarterly Census of Employment and Wages, Minnesota Department of Employment and Economic Development, 2nd quarter data; Metropolitan Council staff have estimated some data points. The most recent data available from the Metropolitan Council is from 2022, which indicates steady job creation in Plymouth – especially in Construction, Administrative & Waste Services, and Wholesale Trade over the past 10 years. 83 4Plymouth Economic Development // 2023 Annual Report |Twin Cities Orthopedics The recently completed project features a 70,000-square-foot medical offi ce building located off Highway 55 and Rockford Road on the former Dundee Nursery site. An estimated $33 million was invested for the new TCO building, which is expected to bring roughly 90 new jobs. | CFMOTO CFMOTO moved into its new 120,000-square-foot U.S. headquarters on Nathan Lane after revitalizing the former United Hardware site. CFMOTO is a power sports company and intends to grow in Plymouth, adding new jobs to the community. | CARE Counseling CARE Counseling hosted a breakfast drive-through at its new location off Rockford Road with special guest Crunch, the mascot for the Minnesota Timberwolves. CARE Counseling is committed to providing accessible and compassionate mental health services to the local community. Fusion Soccer Fusion Soccer Club moved its operations to a multi-tenant building off Rockford Road and Highway 55. The new location provides 20,000 square feet of indoor recreation and fi eld space for its youth soccer programs, as well as offi ces and meeting rooms. 84 5Plymouth Economic Development // 2023 Annual Report | The Brooks Apartments & Commercial The Brooks is a mixed-use development consisting of a four- story, 220-unit apartment building and two new commercial buildings, in addition to upgrades to the existing fuel station. The estimated economic impact of this project is more than $53 million. Additionally, realignment of Nathan Lane to 56th Avenue benefi ts the community with improved traffi c fl ow and safety in the area. The formerly vacant site is just west of Superior Ford on the southwest corner of Bass Lake Road and Highway 169. | Hollydale The roughly 160-acre former golf course site was approved for 230 single-family lots. Located off Holly Lane and Old Rockford Road, the project has already added a total value of $80 million in new homes. The project also added more than $1.1 million in park dedication funds. The city is actively working on Schmidt Woods, a neighborhood park serving existing and new residents in this area. |The Wren Apartments Doran Companies constructed the Wren, a 176-unit apartment located on Highway 55 and Highway 169. This project boasts an investment of $54 million and will provide luxury housing units on the eastern edge of Plymouth, just off Highway 55. The site was previously an unused surface parking lot and sits just east of Cub Foods. The project received TIF assistance and 20% of the units are available for residents at 50% or less of area median income. | Blaze Credit Union After years of the city attempting to work with Burger King to demolish the dilapidated site off Rockford Road, Spire Credit Union, now Blaze Credit Union, purchased and demoed the building. Blaze Credit Union will construct a new 5,000-square-foot building, investing an estimated $4 million in the community. The city is seeing a renewed interest in this area along with excitement from residents. | Suite Living Suite Living Senior Care, located on Zachary Lane and Rockford Road, will feature 32 private suites for assisted living and memory care services. The project includes a connection to Zachary Playfi elds and boasts high-quality architecture for this much-needed use. The city also received a shared parking agreement for the entire property for Zachary Playfi elds. This project investment is estimated at $9 million. |Honeywell Additions Honeywell received city approval to build a new 5,000-square-foot detached facility on Honeywell’s Highway 55 campus to develop and build cutting edge weather measurement equipment. Honeywell also purchased the DRC building on the northeast corner of I-494 and Highway 55. The almost 13-acre campus is undergoing renovations for this new facility. 85 6Plymouth Economic Development // 2023 Annual Report | City Center The City of Plymouth is working to implement a long-term vision for Plymouth City Center to draw more people to the heart of the city and foster a more walkable, pedestrian- oriented district. Pending fi nal City Council approval, improvements slated for 2024 will pave the way for more community activities in City Center. Improvements include spaces for public art and food trucks, a newly designed entrance and signage for the Hilde Performance Center, seating and gathering areas along Plymouth Boulevard, a plaza, and more. For more information, visit plymouthmn.gov/citycenter. | Former Prudential Site A new construction, mixed-use redevelopment is set for the 75-acre, former Prudential Campus site off Chankahda Trail and I-494. The site will consist of residential units, mixed retail, dining, groceries and offi ce park space centered around nature trails and greenspace. The developers, Roers and Scannell, purchased the property for about $20 million. Learn more about the development at the former Prudential Site at plymouthmn.gov/prudential. | Dietrich Development Located to the north of Highway 55 between South Shore Drive and Revere Lane, this proposed development will create a new mixed-use community with apartment homes and retail that will help service the neighborhood. 86 1-City Center 2.0 2-Redevelopment Vision 3-Environment 4-City of Choice Commission Purpose The Plymouth Housing and Redevelopment Authority (HRA) promotes and contributes to the economic health of the community throu gh the creation and maintenance of affordable, workforce and life-cycle housing and active participation in the City’s development and redevelopment processes. 2024 Work Plan City Council Strategic Themes 1. City Center 2.0 - Reimagining Plymouth City Center – the city’s central area – remains a top priority for City Council. Known as City Center 2.0, the city's long-term vision involves exploring land uses and improving infrastructure to encourage redevelopment that will draw people to the area and support commerce, art, recreation, inclusion, and community vitality. 2. Redevelopment Vision - The primary objective of this theme is to consider how Plymouth can articulate its vision for long-range redevelopment citywide. The city will work to establish clear expectations for projects while partnering with developers to meet the desired outcomes. 3. Environment - Plymouth’s environmental efforts remain a priority, and the city will examine its impact and commitment to stewardship. 4. City of Choice - City Council determined that the city must build on its strengths in order to remain a city of choice for residents, businesses, organizations, visitors, and events. GOALS/PLANNING Strategic Priorities ON-GOING ▪ Monitor the HRA’s housing programs and services; the operations and finances of two senior buildings. ☐1 ☐2 ☐3 ☒4 ☐NA FIRST QUARTER ▪ Review HRA Strategic Plan ▪ Review TIF Program ▪ Review CDBG Annual Action Plan + Home Rehab Funds ▪ Review HRA’s scattered site rental program ☐1 ☐2 ☐3 ☒4 ☐NA ☐1 ☐2 ☐3 ☐4 ☒NA ☐1 ☐2 ☐3 ☒4 ☐NA ☐1 ☐2 ☐3 ☒4 ☐NA SECOND QUARTER ▪ Consider new programming for Naturally Occurring Affordable Housing (NOAH) ▪ Consider use of pooled TIF ☐1 ☐2 ☐3 ☒4 ☐NA ☐1 ☐2 ☐3 ☐4 ☒NA THIRD QUARTER ▪ Discuss HRA budget and tax levy ▪ HRA legislative priorities and recommendations ☐1 ☐2 ☐3 ☒4 ☐NA ☐1 ☐2 ☐3 ☒4 ☐NA FOURTH QUARTER ▪ Review annual Work Plan and new initiatives for 2025 ☐1 ☐2 ☐3 ☒4 ☐NA HOUSING AND REDEVELOPMENT AUTHORITY - HRA 2024 WORK PLAN 87