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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-22-2024APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY FEBRUARY 22, 2024 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Wayne Peterson, James Williams, Ronald Kelner Joel Spoonheim, Kim Vohs and Tony Kuechle ABSENT: None STAFF PRESENT: HRA Executive Director Grant Fernelius, Housing Manager Steven Schmidt, Housing Coordinator Shelonda Marie-Alves and Permit Technician Michelle Bast OTHERS PRESENT: Mayor Wosje 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 p.m. 2. PUBLIC FORUM Chair Soderberg opened and closed the Public Forum as there was no one present to speak. 3. APPROVE AGENDA MOTION by Commissioner Williams, seconded by Commissioner Kelner, to approve the Agenda. Vote. 7 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approved minutes from January 25, 2024. 4.2. Metropolitan Housing Opportunities Program (MHOP) Conversion. 4.3. Plymouth Towne Square. Accept Monthly Housing Reports. 4.4. 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 5.1. Program Year 2024 Community Development Block Grant (CDBG) Annual Action Plan Housing Manager Schmidt gave an overview of the staff report. Approved Minutes Plymouth Housing and Redevelopment Authority February 22, 2024 Page 2 Chair Soderberg opened the public hearing. Mike Vraa, HOME Line, commented the HRA makes an annual contribution to HOME Line for which the organization is thankful. He explained the organization works with tenants in Plymouth that may have an issue with their landlord and need assistance. He relayed the top reasons renters from Plymouth call HOME Line is because of needed repairs, evictions, people trying to get out of their lease, and security deposits. He stated he is present tonight to answer any questions the HRA may have. Commissioner Spoonheim expressed appreciation for the services that HOME Line provides to residents and that the service is available to residents in Plymouth. Commissioner Williams echoed the appreciation. He asked for more information on the number of evictions in Minnesota in the past year and whether there is reasoning behind the increase. Mr. Vraa answered in the decades prior to COVID, Minnesota averaged 13,000 to 15,000 residential evictions per year. He stated during COVID there were moratoriums in place preventing evictions from happening for almost any reason, which were lifted in the summer of 2022. He said there was a huge spike in evictions after that time and since that, the same level has continued. He noted there is a new rule in place where a 14-day notice must be provided to a tenant before filing the eviction and explained that would allow the tenant time to pursue outside funding or assistance through emergency assistance sources. John Burkhow, Senior Community Services, commented his organization has also partnered with the HRA for a number of years. He reported in 2023 they helped 78 older adults in Plymouth, a total of about 900 hours of services. He explained the goal is to allow older residents to remain in their homes by assisting with different chores and services. He said the organization also engages volunteers to assist with things such as yard projects. He stated they also partnered with the local Lowes in Plymouth and noted the company provided a new dryer and range in a resident’s home at no cost. He relayed that in the next year they are expanding their technology programming and provided some examples. He thanked the HRA and welcomed any questioned the group may have. The HRA expressed their appreciation. Sarah Squillace, PRISM, commented the organization focuses on basic needs and also refers participants to other sources that could provide assistance with their basic needs. She provided more details on their homelessness prevention program, which utilizes CBDG funds and other funds, to assist participants in crisis to remain in their homes. She said the organization serves five cities, including Plymouth. She stated that 12 participants from Plymouth are served through the organization every three months, explaining that the organization helps about 25 people in total each month. She commented there is a dramatic need for their services and the demand exceeds their ability to assist therefore they are very grateful for the funding the HRA provides. She provided details on eligibility for participants. She stated that the organization screened about 1,500 more calls during the last year but unfortunately did not have the funding to support more participants than they did the year before. Approved Minutes Plymouth Housing and Redevelopment Authority February 22, 2024 Page 3 Commissioner Kelner asked the number of residents that utilize the organization. Ms. Squillace commented that in one month the organization sees about 1,700 participants, and 350 are Plymouth residents. Commissioner Peterson asked if the service area is primarily the Robbinsdale school district. Ms. Squillace replied that the organization does service that area but also serves residents in other school districts. She stated that the organization does have a partnership with the Robbinsdale school district for the food shelf program. Chair Soderberg closed the public hearing. Commissioner Spoonheim commended staff for the thorough staff report. He recognized that in addition to the CBDG allocation, the group will also be discussing TIF allocation noting that those sources are highly related. HRA Executive Director Fernelius commented that he would prefer to keep those issues separate noting that TIF generally applies to more brick-and-mortar purposes while CBDG is more appropriately used for service programs. Commissioner Spoonheim commented there are funds within the CBDG allocation that could be used for a downpayment on a home, noting that pooled TIF funds could also be used as a source for that activity. He recognized there were both brick and mortar recommendations along with service recommendations within the CBDG allocation. He stated there are excess pooled TIF funds that could be used for housing purposes, such as construction and rehabilitation. He noted most of the service organizations are asking for $1,000 or less per month to serve many Plymouth residents. He stated Prism is asking for $2,500 per month to serve 350 Plymouth families. He said his recommendation would be to adjust the funding proposed to raise the amount allocated to the social service agencies very close to their requested amounts. He reviewed his recommended increases for each of the public service organizations which would total an additional $25,000. Chair Soderberg commented these are CDBG funds that need to be allocated in this action. HRA Executive Director commented that the CBDG has a limitation of 15 percent of funds for public service programs, therefore funds could be moved around between the organizations proposed but the total allocation cannot increase. Chair Soderberg understood the desire of Commissioner Spoonheim but perhaps there is another way to accomplish that. Commissioner Peterson asked for clarification on what 15 percent of the current year’s program Approved Minutes Plymouth Housing and Redevelopment Authority February 22, 2024 Page 4 income would be, as it states the limit is 15 percent of the CBDG allocation plus 15 percent of the current year’s program income. Housing Manager Schmidt commented that the allocation already factors in the $80,000 in program income. Chair Soderberg clarified that $80,000 is already allocated to housing rehabilitation and first-time homebuyer programs. Housing Manager Schmidt confirmed that 15 percent of the current year’s program income was already included with the 15 percent of the allocation in the proposed recommendation as well. Commissioner Kuechle said in his experience there has been so much staff time and thought put into the recommendation he would be hesitant to change that recommendation. Commissioner Vohs asked for information on the utilization of rehab loans and grants, as it appeared there were only a few last year. He asked if there should be additional outreach to advise residents of the programs. He noted a mobile home park in the community where multiple homes could benefit from rehabilitation and stated that area would benefit from outreach about the programs as there is a need. Housing Manager Schmidt replied that type of housing would not be eligible for the rehab loan program. Chair Soderberg stated the packet includes details on the utilization of the programs, noting that there are currently seven rehab loans in progress. Commissioner Vohs asked if the program restriction is local. Housing Manager Schmidt replied that restriction is of CDBG. MOTION by Commissioner Vohs, seconded by Commissioner Williams, to approve Resolution No. 2024-2. Vote. 7 Ayes. MOTION passed unanimously. 6. NEW BUSINESS 6.1. Presentation on Plymouth Tax Increment Financing (TIF) Program HRA Executive Director Fernelius gave an overview of the staff report. Stacey Kvilvang, Ehlers, provided a presentation on TIF basics and the annual TIF status report for the City of Plymouth HRA. Commissioner Peterson recognized maintaining a AAA bond rating is important for the City. He asked if Approved Minutes Plymouth Housing and Redevelopment Authority February 22, 2024 Page 5 there is threshold you cannot go beyond a certain level and maintain that bond rating. Ms. Kvilvang replied there is not a threshold of that nature as agencies like to see the community reinvesting in itself. She stated if the city is reinvesting to increase its market value and tax capacity, that is also good for the bond rating. She reviewed her recommendations to decertify Housing TIF District 1-2 (Vicksburg Crossing), keep Housing TIF District 7-5A (Village at Basset Creek) open through legal term of district, and to make an election to retain an additional ten percent for affordable housing in TIF Districts 1-3 (Plymouth Crossroads) and 7-8 (Quest Development). Commissioner Peterson referenced the pooling percentage the ability to pool 25 percent for other purposes. He asked if the ten percent for administration would come off of that 25 percent. Ms. Kvilvang confirmed that to be true. She stated most cities do not fully utilize the full ten percent in administration and therefore use the remainder for other housing or redevelopment purposes. Commissioner Vohs stated his concern would be that as a property is developed into a larger use, the need for public services and infrastructure also increases. He said it seems the cost for those additional services would then be paid by the public in general if TIF is being collected. Ms. Kvilvang commented the law requires fiscal implication and provided details on that process and the findings it provides. She stated for a larger city there are typically not impacts on public safety from a larger development as the public safety departments are already established and able to handle any additional demand on services. Commissioner Williams referenced demolition and decontamination that occurred for Four Seasons Mall and asked if TIF was used. Ms. Kvilvang replied the purchase of the property was covered by transportation funds and the demolition was covered by grant funds the city received. Commissioner Kuechle asked for additional details on what would happen or need to occur prior to a note being paid in full. Ms. Kvilvang commented the city would have up until the time the note is paid in full to make the election. She stated the election could also be made when the district is established. Commissioner Spoonheim asked if the HRA is making decisions tonight. HRA Executive Director Fernelius replied that part of the case tonight was the presentation which was informational. He stated staff would like input on the recommendations from Ehlers, noting that if there is support for those items staff would draft the necessary resolutions for future consideration by the HRA and City Council. Approved Minutes Plymouth Housing and Redevelopment Authority February 22, 2024 Page 6 Commissioner Spoonheim thanked Ms. Kvilvang for her great presentation. He stated he does support the second and third recommendations but would like more information on the first recommendation. He asked the cost of collecting the $11,000 in the first recommendation and whether it would ultimately cost money to collect those funds. Ms. Kvilvang replied that if the dollars are kept those could be used for rental housing or owner-occupied housing. She stated that at the end of the day, collecting $11,000 may not be worth administering the district and reporting on it, especially when there will be additional dollars coming to the city for affordable housing. Commissioner Spoonheim asked for more clarification on the cost to keep the district open and whether there would still be a net gain from keeping the district open. Ms. Kvilvang replied it is not a large cost to administer the district. Commissioner Spoonheim stated if they leave the district open for the remainder, that could be $100,000 which is still a benefit. He recognized that there is an annual cost to keeping the districts open and would like to have more complete information before making the decision whether or not to decertify. HRA Executive Director Fernelius commented there is an administrative cost and provided details on the income verification and annual reporting that is required. He stated he could tally the different costs to bring back. He said in his opinion it would make sense to decertify as there would be better use of staff time. Chair Soderberg commented it is not just the cost but the staff time as well, noting staff time is a limited resource and therefore she would support better utilization of that time. Commissioner Vohs stated tht he gets the impression that the available sources for affordable housing funds are being maximized. HRA Executive Director Fernelius confirmed the consensus of the HRA to direct staff to bring back resolutions to consider related to the recommendations from Ehlers. He noted that at a future meeting they could also discuss how pooled TIF could be used. Mayor Wosje noted upcoming council workshop topics and advised that the two city owned senior apartments were identified. HRA Executive Director Fernelius confirmed the City Council would like to learn more information on the HRA programs as well as the long-term plan for the two senior buildings. He also noted additional topics that staff would like to discuss with the HRA this coming year. Chair Soderberg commented they need to develop a list of capital improvements needed for the two buildings and recognized TIF may need to be used for that purpose, depending on the cost. Approved Minutes Plymouth Housing and Redevelopment Authority February 22, 2024 Page 7 Commissioner Vohs commented that often reserve funds are used for maintenance purposes and asked if the reserves would be sufficient to address ongoing maintenance rather than using TIF. HRA Executive Director Fernelius stated it has been a number of years since the capital project list has been updated. He noted there is storm damage at both properties and therefore it is most likely that both roofs would need to be replaced. He stated staff will be compiling a list more specifically. He stated they will also review how adequate the reserve funds are after those capital needs are identified. 7. UPDATES HRA Executive Director Fernelius provided a summary of his report and update. Mayor Wosje reported that Councilmember Davis has resigned due to ongoing health concerns. He stated that the council would like to fill the position with someone that would not be interested in running in the election in November. 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:21 p.m.