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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 01-16-2003MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY January 16, 2003 PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, Leon Michlitsch, Tim Bildsoe and Jenny Hibbard ABSENT: None. STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes, Office Support Specialist Ranelle Gifford OTHERS PRESENT: Grace Management Representative Jodi Boedigheimer 1. CALL TO ORDER Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order January 17, 2003 at 7:00 p.m. 2. OATH OF OFFICE Housing Manager Barnes administered the Oath of Office to new HRA commissioner Jenny Hibbard. 3. APPROVAL OF MINUTES MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, approving the December 19, 2002 minutes. Vote. 5 Ayes. MOTION approved unanimously. 4. CONSENT AGENDA A. Plymouth Towne Square — Accept monthly housing reports. MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, approving the Consent Agenda item. Vote. 5 Ayes. MOTION approved unanimously. 5. PUBLIC HEARING A. Elim Homes, Inc. — Application to issue housing revenue bonds. Housing Manager Barnes gave an overview of the January 9, 2003 staff report. Commissioner Bildsoe asked if purpose of the letter of credit was for the differential of interest rate between bank qualified vs. non-bank qualified. Housing Manager Barnes answered affirmatively. Plymouth Housing and Redevelopment Authority January 16, 2003 Page 2 Executive Director Hurlburt stated it is in the form of a letter of credit, not cash. Housing Manager Barnes stated Elim Care is aware of the possibility of the City drawing on those funds. Commissioner Ludovissie asked how the $76,000 letter of credit amount was arrived at. Housing Manager Barnes stated Springsted, our financial advisor did a cash flow comparison at 3.833 % for non-bank qualified vs. 3.97 % on a bank qualified for a million dollar issue. Commissioner Ludovissie asked if this item has to be approved by the City Council. Housing Manager Barnes answered affirmatively in that the City Council would authorize the Mayor to sign the required documents. Executive Director Hurlburt stated the Finance department is comfortable with this issue. Chair Henderson asked if the HRA has it's own 10 million of bank qualification along with the City's 10 million threshold. Mark Beese with Northland Securities stated the HRA has its own 10 million dollar limit but that amount does count against the City's limit as well. Executive Director Hurlburt stated the City has a 10 million dollar limit. Executive Director Hurlburt stated if the City Council issued the bonds, the City would still have the same problem. Chair Henderson asked if we can use up the 10 million without City Council approval. Executive Director Hurlburt stated we could look at more projects but they would have to be non-bank qualified. Commissioner Hibbard asked if the bank qualified interest rate is a set amount. Housing Manager Barnes stated the interest rate might fluctuate based on the market and credit rating. Chair Henderson opened the public hearing. Dan Fair of Elim Care, Inc. stated this would be the last phase of this project. He stated the building will be a four story building with the appearance of a three story building from the front. He stated they are providing housing with assisted living services. Mr. Fair gave an overview of the building layout and services that will be provided. Commissioner Ludovissie asked when construction would start and be completed. Mr. Fair stated they hope to begin construction by March 1, 2003. He stated they are looking at bids at this point and are on schedule. He stated the construction would be a 12 month building process. Commissioner Hibbard asked what they would do if the City only supported half the request. She asked if there were other options they could pursue. Kathy Youngquist with Elim Care, Inc., stated with half the support they would have to look at an entirely different approach. She stated without the City's support the bank wouldn't look at the project at all. Chair Henderson asked if 10 million is the complete amount of the request. Ms. Youngquist stated the amount has changed from 10 million to 9.9 million. Plymouth Housing and Redevelopment Authority January 16, 2003 Page 3 Chair Henderson closed the public hearing. Housing Manager Barnes stated the bond amount has changed from 10 million to 9.9 million. He stated they are only going to issue 1 series in the amount of 9.9 million. Housing Manager Barnes stated Elim Care, Inc. has been able to work with the change. MOTION by Commissioner Michlitsch, seconded by Commissioner Hibbard to approve the attached resolutions authorizing the sale and issuance of bank -qualified tax exempt Housing Revenue Bonds, in an amount not to exceed $9,900,000 on behalf of Elim Care, Inc. Vote. 5 Ayes. MOTION approved unanimously. 6. NEW BUSINESS A. PLYMOUTH TOWNE SQUARE Housing Manager Barnes gave an overview of the January 10, 2003 staff report regarding the issuance of G.O. backed Housing Revenue Bonds for Plymouth Towne Square. Chair Henderson asked about the approximate $100,000 difference from the original proposal to this proposal. Housing Manager Barnes stated the amount actually decreased from the original proposal. Housing Manager Barnes provided an explanation of the financial estimate. Executive Director Hurlburt stated all of the amounts are estimates until we sell the bonds. MOTION by Commissioner Bildsoe, seconded by Commissioner Ludovissie to approve the draft resolution to issue G.O. backed Housing Revenue Bonds for Plymouth Towne Square. Vote. 5 Ayes. MOTION approved unanimously. B. STRATEGIC PLAN Housing Manager Barnes gave an overview of the January 7, 2003 staff report in regards to the HRA Strategic Plan Recommendations for 2003/2004. Commissioner Bildsoe stated he would like to have the HRA identify potential sites in the City Center area and add this to the Action Plan under New Development. Chair Henderson stated she would like to change goal number 1 to read all of our programs not just the ongoing programs. Chair Henderson stated that under the Action Plan, she would like to see a brief description of what each individual programs objective is and what we hope to accomplish. Executive Director Hurlburt stated that may help with people who are not in the housing industry to understand the programs. Chair Henderson asked if we could address the preservation of existing affordability under the item of Preservation of Existing housing units. Executive Director Hurlburt stated there could be a separate strategy for the issue of preservation of existing affordable housing. Commissioner Bildsoe stated maintaining affordability might limit equity. Plymouth Housing and Redevelopment Authority January 16, 2003 Page 4 Commissioner Bildsoe stated he would like to see a list of proposed updates to the Plymouth Towne Square. Ms. Boedigheimer stated the updates are in the works, they have some fabric samples etc. She stated she will provide a better update at the next meeting. Executive Director Hurlburt reviewed the importance of the language of item 6 under goals. Chair Henderson stated the timeline for item 4b should be changed to 2nd quarter. Chair Henderson stated the timeline for all items under Redevelopment should be addressed. She stated a specific date rather than ongoing for the timeline is needed. Commissioner Bildsoe asked to add a statement under Economic Development that the HRA will coordinate efforts with Twin West Chamber of Commerce. Chair Henderson stressed the importance of initiating communication with businesses to market our HRA programs. Chair Henderson asked if we could initiate a list of businesses. Executive Director Hurlburt stated at this time we can research and identify ways to market and reach businesses and their employees with our programs. Chair Henderson stated we could add a section after the Action Plan titled the Communication Plan. Commissioner Hibbard stated a 7' goal could be added stating we will explore the avenues of communication with interested stakeholders. The Commissioners discussed the coordination of a meeting date with the stakeholders to obtain feedback on the Strategic Plan. The proposed date of February 10, 2003 for the meeting with stakeholders was agreed upon. 7. OTHER BUSINESS — PLYMOUTH TOWNE SQUARE Jodi Boedigheimer of Grace Management stated she met with the beauty shop stylists in regards to the salon operation at Plymouth Towne Square. She stated they are very concerned about meeting the residents needs. She stated the residents don't make appointments, they just walk in. She indicated the residents don't see it as a business. She believes it would be helpful if appointments were made. She stated the lease amount for the beauty shop is $200. Commissioner Bildsoe asked what our intention was, to keep the beauty shop or not. Ms. Boedigheimer stated it is a service worth providing. She stated the stylists want to stay and work it out. Commissioner Bildsoe stated his concern that if we increase their lease amount, they will pass that cost onto the residents. Ms. Boedigheimer stated she will continue to work with them to reach a solution to existing concerns. 8. ADJOURNMENT Meeting adjourned at 9:00p.m. HRA/Minutes/2003/11603