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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 01-22-2015APPROVEDMINUTES PLYMOUTH HOUSING ANDREDEVELOPMENT AUTHORITY January 22, 2015 PRESENT: Chairman Kulaszewicz, Commissioners JimWillis, ToniJelinek, andMichelle Soderberg ABSENT:Commissioner Katie Black STAFFPRESENT: HRAManagerJimBarnes, HRAExecutiveDirector SteveJuetten, City ManagerDaveCallister, HousingSpecialist Spencer Agnew, and OfficeSupportRepresentative Tina Beckfeld OTHER: GraceManagement Representative Jody Boedigheimer 1.CALLTOORDER ChairmanKulaszewiczcalledthePlymouth Housing and Redevelopment Authority meeting toorderat7:00p.m. Thecommittee welcomed newcommissioner Michelle Soderberg. 2.CONSENT AGENDA A.ApproveHRAMeetingMinutes for October 23, 2014. B.PlymouthTowneSquare. Accept Monthly HousingReports. C.Vicksburg Crossing. AcceptMonthly Housing/Marketing Reports. D.HRA ProgramUpdates. Update. CommissionerJelinek requested thisitem be moved toNewBusiness as 3.E. MOTION byCommissioner Jelinek, seconded by ChairmanKulaszewicz, to approvethe amended consentagenda. Vote. 4 Ayes. MOTION passed unanimously. 3.NEWBUSINESS Sand Companies. Potential mixedincome development.Housing Program ManagerBarnesintroduced Jamie Thelen, Sand Companies, Inc., who gave anoverview ofthepotentialmixedincomemulti-family development.Mr. Thelen stated currently Sand Companies doesnothavecontrol oftheproperty, but they areinnegotiations withthebankthatownsthe site. The siteisverychallenging asextensive soilcorrection would be required. He also notedthat only2.99acres ofthe11 acresite isbuildable. SandCompanies would applyto Hennepin Countyfor funding bytheend ofFebruary.SandCompanies isproposing amulti-family four- story buildingproviding 90- 110unitswithunderground parkingand potential retail onthefirstfloor. Thesite appealisthetransitcenter. Theyareproposinghalfof thebuilding tobemarket rateunits withtheother halfbeing affordablehousing units. TheywillapplytotheMinnesota Housing FinanceAgency (MHFA) forfunding throughLow IncomeHousing Taxcredits. The nextstep would betogetan indicationofinterest from the commission andthen theywouldbringback specifics.Chairman Kulaszewicz askedwhoownstheland.HRA ExecutiveDirector Juettenstated thatthebanktook theproperty back fromOppidan because they weren’tmoving fastenough. Hesaidoriginally the property wouldpotentially be developedasoffice, medical, orretail.CommissionerSoderberg asked howthepropertyiscurrently zoned.HRA Executive Director Juetten answered itis aPlannedUnitDevelopment (PUD). Commissioner Jelinekaskedwhowouldbe responsible forthesoilcorrections.Mr. Thelenanswered thatSandCompanies.CommissionerWillis askedif Sand Companies would askforcityassistance with thesoilcorrections.Mr.Thelenstatedfunding could potentiallycome fromthecounty, city, or Minnesota Housing, andwouldnotnecessarily betiedtosoil corrections. Headded they arealso negotiating the landpricebasedonthe required soilcorrections.Housing Program Manager Barnesstated different HRA sourcesoffundinghavedifferent restrictions, whichwoulddictate the useoffunds.Chairman Kulaszewicz said thisTIF districthasfunded about amillion dollars inroadimprovements anddemolition oftheoldbuilding.HousingProgram Manager Barnes clarified wearejustunder $1.9 million onapay-as-you-gonotethatis committed tothe existingproject. The existing tax incrementhasbeenspokenfor. Publicimprovements thusfar includetrafficflowrealignment, increased stackingatintersections, somesoilcorrections, anddemolition oftheold building. ChairmanKulaszewicz asked ifthisproject would beadded to theTIF district.Housing ProgramManagerBarnes explained thereis apotential forexcess increment ifthevalue ofthebuildingishigherthanthepotential usesconsidered in2012. Wehave the abilitytopool fundsforaffordable housing throughother existing tax incrementdistricts. Funding couldbe acombinationofcityandHRA funds, including the HRAgeneral fundreserve.Commissioner Willisasked how muchfunding Sand Companies is requesting.Housing Program Manager Barnesstated itisunknown. TheHRA wouldprobably notbeabletohelpwiththemarket rateportionoftheproject. Afinancialanalysiswould bedonetodetermine iftherequestis prudent fortheutilization of publicdollars. Staffwouldlook tomaximize Hennepin County andMHFAfundsthey would be applying for. Housing Program Manager Barnes saidsubsidizing sewerandwateraccessfeescould helptheirapplication. Hesaidforthe West ViewEstates project Plymouth provided $4,000 offunding topaytowardthesewerandwaterfees andthathelped themearnadditional pointsontheirapplication totheState. Mr. Thelenaddedthe newestpushistowards ending long-termhomelessness. Sand Companiesisproposing5% or4unitsbe designated forthe long- termhomeless. On-site staffwould beonsite toassistthem.Chairman Kulaszewicz asked who wouldpaythe rentonthose units.Mr. Thelenanswereditcould be aSection8orproject based voucher.Chairman Kulaszewicz askedifthey would beofferingworkforceproject based units. Housing ProgramManager Barnesstatedtheywouldrequest acertain number of projectbasedvouchersfromtheHRA, ofwhichthe HRAhastheability touse30% forproject based vouchers. Iftheyaskedforsix, fourofthose units would befor thelong-termhomeless, the other twowould befilled fromour waitinglist.HRA Executive DirectorJuetten added thatthere wouldbeotherunitsthat hadaffordablerates sothatotherworkforce applicants would qualify.CommissionerWillisstatedthe originalintent was forcommercialuse, notmore housing. Hesaidheis concernedthattheoriginal TIF expenditures aretied totheexisting coststhathavebeenoccurred. Hesaidhewould notcommithis support untilheseesall theprojectdetails.Chairman Kulaszewicz and Commissioner Jelinekconcurred withCommissionerWillis. ChairmanKulaszewicz asked about thefuture property taxon this TIFdistrict. Housing ProgramManager Barnes respondedthetaxeshavebeen calculated basedon ahypothetical 35,000-squarefoot, two-storyofficebuilding. Thefinancial consultant wouldcomparethe proposeduses to determinewhatthe difference wouldbe. Commissioner Jelinek askediftherewere other multi-familyunitsinthe area.Housing Program ManagerBarnes saidTheWaters SeniorLiving isnextdoor, andStoneCreekVillage isacrossHighway55. He addedtheBrown’s Market developmentwith157market rateunits isnotconstructed yet.Chairman Kulaszewicz askedwhat impact the straightening ofCountyRoad 73 would have. StaffexplainedhowCountyRoad73could potentially beredesigned.Housing Program Manager Barnes summarized SandCompanies’ application isdue tothe countyonFebruary 26thwhichis the samedayas the nextHRAmeeting. Heproposed a specialHRAmeetingorrescheduling theFebruary26thmeetingto help SandCompaniesmeettheirdeadline. HousingProgram Manager Barnessaid he istalkingtoHennepin County regardingthedeadline. Thecommission asked thatstaffnotify themtopropose achange inthemeeting date.ConsiderHomeEnergy SquadEnhancedAuditProgram. Housing Specialist Agnewgave anoverview of the HomeEnergy Squad Enhanced AuditProgram.Chairman Kulaszewicz hadsuggested lookingintothisprogram ashe hashad theCenter for Energy andEnvironment (CEE) enhancedanalysis andmadeenergyefficientimprovements tohishome. Henotedthatif the citywereapartner withCEE, residentscould beeligible for a $400-500rebatefor makingcertain improvements.Commissioner Jelinek said althoughtheprogram haspotential, she hasreceived callsfromtheCEE andfeltitdidnotseemlike a gooddeal.Shequestioned ifresidents wouldactually use itorunderstand itsworth.Commissioner Soderbergasked howresidents wouldbemade aware ofthisprogram.Housing Specialist Agnew suggested advertisement withutilitybillinsertsand onthecitywebsite.Housing ProgramManagerBarnes mentionedtheHRA hasusedCEE foralighting retrofit, analyzing anicedam problem atPlymouth TowneSquare (PTS) andthey alsowere advisors intheVicksburg Crossing project toavoidthesame issues. Commissioner Soderberg asked wherethefundswould comefrom or mightthere beabetter useofsuchfunds.HousingProgram ManagerBarnes respondedstaff would fundthisprogram fromthe HRAGeneral Fundreserves.CommissionerJelinek askediftheBoard decides how much wouldbeallocated toward theprogram.Housing SpecialistAgnewanswered affirmative. HRAExecutive DirectorJuetten added theBoard could capthebudgeted amount.Commissioner Jelinekcommentedthatthis isagoodtimetofocus on energysavings andsuggested a one-yearpilottoseeiftheprogram would be used.Chairman Kulaszewicz saidthe program wouldbefunded throughthegeneral fund reserves, whichispartofthetaxlevy, andquestioned ifthe residents ofPlymouth wanttopayforthis.HousingProgramManager Barnes clarifiedthis wouldnot raise thetaxlevy. Healso statedthe program wouldbe evaluatedafteroneyearand thefunding wouldbediscussed as partofnextyearsbudget.Commissioner Willisstatedhisownbias isthatthereal bonuswould beifaresident wereabletotakeadvantage ofthe rebates. Hesaidhedidn’t feeltheprogramwouldmotivate manyresidents andsuggested amodest costparticipation. CommissionerSoderberg asked what themeasurement forsuccess is.HousingProgram Manager Barnessaidstaff would reportbackto thecommission aroundbudgettimeifresidentswere usingtheprogram.HRAExecutiveDirectorJuetten addedstaff would alsolookto seeif permits wereobtainedforadditionalworkatthoseaddresses.MOTION byCommissioner Jelinek, seconded byChairmanKulaszewicz, to approve aone year pilotpartnershipwith theCEEHome Energy SquadEnhanced Audit Program limiting thecity’sparticipation to $30perunitwithamaximum amountof $6,000available for the firstpilotyear subject torenewalbased ona positiveoutcomeas determined bystaff. Vote. 3 Ayes. CommissionerWillisvotingnay. MOTIONpassed. TIF1- 1. ApprovePayingOffBonds andPledge Agreement withthe City foran Inter-fundLoan.HousingProgram Manager Barnes submitted areplacementResolution No. 2015- 02 included under item3.C. andgaveanoverview ofthe staff report. Commissioner Jelinek asked ifthe commission wasasking thecity tolend the HRAthemoneytopay offbondsat alowerinterestrate.City Manager Callister statedtheinterest ratewillstaythesame. Theadvantage istheinterest earnings willgoto thecityratherthan anoutside source. Chairman Kulaszewicz askedwhatthecurrent bond ratesare.HousingProgram Manager Barnes answeredtheremaining bondratesrangefrom3.75% to4.25%. Thenewloanschedule isat4% interest.CommissionerJelinek asked ifbond ratingwouldbeimpacted bypayingoff the loan.Commissioner Willisstated thecity’sbondrating iscurrentlyAAAandcannot getanybetter.MOTIONby Commissioner Willis, secondedbyChairman Kulaszewicz, toapprovetheattached resolution authorizing theredemptionof General Obligation TaxIncrement Bonds, Series2005A andenter intoaPledge AgreementwiththeCity of Plymouth. Vote. 4Ayes. MOTIONpassedunanimously.Plymouth TowneSquare. Amend2015 OperatingBudget. Housing ProgramManagerBarnes submitted a replacement Resolution No. 2015-01included underitem 3.D andgavean overviewofthestaff report.Commissioner WillisaskediftheHRAdidnotdo this, what wouldhappen to theexcessTIF.Housing ProgramManagerBarnesanswereditcould bereturned tothecountyfor redistribution oritcouldgotoward anotheraffordable housingproject. Hesaidfunds would beswitched fromPlymouth Towne Squaretaxlevydollarsfor taxincrement debt inordertousethetaxlevy dollarstohelpestablishtheneweconomic developmentprogram.CityManager Callisterstateda similaramount ofmoney wouldbeneeded for next year, however, theywillexplore otherfundingsources.Housing ProgramManagerBarnesstated therewould be noimpact onreplacement reserve account ApprovedMinutes PlymouthHousing andRedevelopment Authority January22, 2015 Page 7 HousingProgram ManagerBarnesstated therewouldbenoimpactonreplacement reserveaccount becauseno money isbeingtakenoutthisyear. Hesaidinsteadofusing themoney fromthereserveaccount, thecontractors would bepaid directlyfrom the excessincrement thatisheld atthecity. HRAExecutive Director Juettenstated staff willpresenttheHRAcommission areserve schedule forreviewinthe springestimating thenext 15-20yearsforeach of thesenior buildings. Commissioner Willissaidtheeconomic developmentprogram isanewprogram andthe planisto hiresomeonetomanage theprogram through theHRA structure. Hestated inevitablycostswillincreasewiththe success oftheprogram. CityManager Callister explained the purposeoftheeconomic programistohire apoint persontobealiaisonwith thebusinesscommunity. Hesaidthe challenge andpurpose fordoingthisistoenhance whatwehave asa communityandPlymouth needsto be proactiveratherthatreactive. MOTION byChairmanKulaszewicz, secondedby Commissioner Willis, to approve the Vote. changesdiscussedforthePlymouthTowneSquare Budget for2015. 4Ayes. MOTION passed unanimously. E.HRA ProgramUpdates. Commissioner Jelinek noted thelackofactivityinboththeEmergency Repair Assessment Program andtheEmergencyRepair LoanProgram, andaskedifthe programsshould be continued, discontinued, orchanged. HousingProgram ManagerBarnesexplainedtheprograms aredoingnoharm andare not costinganything. Headded theyarestop-gapprograms forindividualswho mayfall outside theregularly fundedfederalprograms offered bytheHRA. Commissioner Jelinek askedifstafftimeisrequiredtomaintain oradministerprograms that arenotbeingusedorthatnooneknowsabout. HousingProgram ManagerBarnessaidstafftimeisforinquires atthispointandonly addsuptoafew hoursperyear. ChairmanKulaszewiczstated hedoesnotseethedownside ofhavingtheprograms. Commissioner Willisstatedtheprogramsprovide asafety net forresidentsasalast resort. ApprovedMinutes PlymouthHousing andRedevelopment Authority January22, 2015 Page 8 Commissioner Soderbergaskedwhatthedefinitionofhouseholdmedianistounderstand whyresidentswerenot usingthe programs. Commissioner Willisasked thatthosefigures be included in future staff reportsfortheir reference. 4. ADJOURNMENT MOTION byCommissioner Jelinek, seconded byChairmanKulaszewicz, to adjourn the meeting at8:32 p.m.