HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 12-19-2002MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
December 19, 2002
PRESENT: Chair Susan Henderson, Commissioners Steve Ludovissie, Leon Michlitsch, and
Tim Bildsoe
ABSENT: Commissioner Sandy Hewitt
STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes,
HRA Specialist Tracy Jones, Office Support Representative Barb Peterson
OTHERS PRESENT: Grace Management Representative Jodi Boedigheimer
1. CALL TO ORDER
Chair Henderson called the Plymouth Housing and Redevelopment Authority meeting to order
December 19, 2002 at 7:00 p.m.
2. APPROVAL OF MINUTES
MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie, approving the
October 10, 2002 minutes.
Vote. 4 Ayes. Motion approved unanimously.
MOTION by Commissioner Michlitsch, seconded by Commissioner Ludovissie, approving the
Joint City Council and HRA Board of Commissioners Meeting Minutes on November 18, 2002.
Vote. 4 Ayes. Motion approved unanimously.
MOTION by Commissioner Ludovissie, seconded by Commissioner Michlitsch, approving the
November 21, 2002 minutes
Vote. 4 Ayes. Motion approved unanimously.
3. CONSENT AGENDA
A. Plymouth Towne Square – Accept monthly housing reports.
B. Plymouth Towne Square – Close two bedroom waiting list
C. Plymouth Towne Square – Approve Revised Utility Allowance Calculation
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, approving the
Consent Agenda items.
Plymouth Housing and Redevelopment Authority
December 19, 2002
Page 2
Commissioner Ludovissie asked if the utility allowance calculations are reviewed on a yearly
basis for Plymouth Towne Square. Housing Manager Barnes replied that Plymouth Towne
Square has not previously used the utility allowance, however, the Section 8 program does use it
and it gets reviewed annually. Commissioner Ludovissie asked when the adjustments will be
made for the recertification process. Housing Manager Barnes replied that both rents and utility
allowance will be reviewed at the time of recertification in 2004. He explained that the analysis
for the utility allowance is done by the Section 8 staff, not Plymouth Towne Square staff.
Vote. 4 Ayes. Motion adopted unanimously.
Housing Manager Barnes reviewed the two handouts which the Commissioners received. One
was an invitation to the 2003 Day at the Capital Minnesota Legislative Breakfast and Briefing on
February 11th. Chair Henderson asked if anyone has attended in the past. Housing Manager
Barnes said that last year was the first year it was held and staff did not attend. The other
handout was from Minnesota NAHRO containing the 2003 Legislative Agenda.
4. PUBLIC HEARING – There was not a public hearing on 12/19/02.
5A. PLYMOUTH TOWNE SQUARE – 2002 Resident Survey
Housing Manager Barnes said that Plymouth Towne Square conducts a resident survey every
year, however, this was the first year it was conducted by Grace Management. Grace
Management Representative Boedigheimer summarized the surveys that were received. Overall,
she felt that most of the residents are happy with the way things are going. There are still a few
residents who are unhappy with the rent increase, which was expected.
The survey indicated the largest problem is with the Beauty Shop. Housing Manager Barnes
asked if their lease was month to month. Grace Management Representative Boedigheimer
replied it was a one year lease that expired November 1, 2002, and they now are on a thirty day
notice. Housing Manager Barnes suggested looking at different incentives to get new providers
who would be responsive to the residents’ needs. Commissioner Ludovissie stated it might be
hard to find the type of provider seniors are looking for. Commissioner Bildsoe asked how much
of their business the residents provide. Grace Management Representative Boedigheimer stated
that it is hard for the residents to get an appointment because of outside clientele. The charges
for services were discussed. Commissioner Bildsoe feels that we are subsidizing a business.
Director Hurlburt said the reason we provide space for a beauty shop is to provide a convenience
for the residents. Housing Manager Barnes suggested holding a meeting with the residents who
would potentially use the business. Commissioner Ludovissie said it might be better to meet first
with the provider to determine their goal in satisfying the residents’ needs. Housing Manager
Barnes said staff will review the situation, meet with the provider and make suggestions.
Grace Management’s Boedigheimer reviewed the activities residents would like to have added.
They would like more speakers. The residents do not want to pay for more activities. Housing
Manager Barnes suggested using a volunteer program. Transportation to Plymouth Creek Center
for the activities held there was discussed. Commissioner Bildsoe asked how often they would
like a speaker. Ms. Boedigheimer responded not more than once a month. Grace Management
Representative Boedigheimer said that the residents have held discussions about dissolving the
Plymouth Housing and Redevelopment Authority
December 19, 2002
Page 3
Resident Council. Both Commissioner Ludovissie and Commissioner Bildsoe felt that it would
be a mistake to do so.
5B. PLYMOUTH TOWNE SQUARE – Refinancing of Existing Debt
Housing Manager Barnes stated that with current interest rates being so favorable, staff has done
an analysis and looked into selling the G.O. (General Obligation) backed Housing Revenue
Bonds, which were developed, but never issued when PTS was constructed, and pay off the
existing debt that the City internally financed through reserves. He said our financial advisor,
Springsted Inc., has reviewed the current financing and suggested two different scenarios for
refinancing. Housing Manager Barnes said the HRA is currently paying the City 5.7% interest.
Option 1 is the Level Savings Solution. This would be a reduction of the interest rate paid but
keep the term at twenty years which is the remaining time on the existing debt. The HRA would
see a savings of an average of $30,000 per year which could be used for other projects or to
reduce the subsidy provided for Plymouth Towne Square. The overall savings would be
approximately $412,760, present value.
Option 2 would reduce the term and provide a lower interest rate. It would also shorten the term
to 18 ½ years. We would not see any annual savings with this option. The City’s bond Counsel
has reviewed the existing documents and they are in good order. The City Council would need
to re-confirm their desire to pledge the G.O. to the HRA’s bonds. A public hearing would not be
required. The cost of issuing these bonds would be about $86,000.
Staff recommended looking at Option 1. Housing Manager Barnes said that Option would give
the HRA $30,000 to work with on an annual basis, which could be used to fund other affordable
housing programs. Commissioner Bildsoe suggested that the bonds will probably come up for
refinancing again. Director Hurlburt said she had been concerned that the City would lose
money by not receiving as high an interest rate on the funds they loaned the HRA with the
refinancing. However, the City’s Finance Director felt the City could probably get about 6% on
the money in a traditional investment over the long term so the refinancing would be a win-win
for both the City and the HRA. Chair Henderson asked who will pick up the bonds. Various
ways of marketing the bonds were discussed. Commissioner Bildsoe felt that a 1 point discount
was too high and that it should be negotiable. Commissioner Ludovissie said he was in favor of
Option 1. Housing Manager Barnes stated that these are preliminary runs so there is still time to
look at fees.
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to go forward with
Option l, recommending that Staff prepare documents for issuing the bonds for the refinancing of
Plymouth Towne Square to be approved at the January 16th HRA meeting and ask the City
Council to approve the resolution at their January 28th meeting.
Vote. 4 Ayes. Motion adopted unanimously.
Plymouth Housing and Redevelopment Authority
December 19, 2002
Page 4
5C. PLYMOUTH TOWNE SQUARE – 2003 Operating Budget
Chair Henderson asked if this is part of the HRA annual operating budget process. Director
Hurlburt said there is a line item in the general fund budget for the subsidy of Plymouth Towne
Square but not the actual operating budget for the facility.
Housing Manager Barnes stated that overall revenues for the 2003 budget have increased by
10,071 which is about a 1% increase. This is due partly to an increase in the HRA subsidy,
which is $6,128 more than the 2002 budget. It is also due to the restructuring of rents which
showed a 3% increase. On the expenditure side we saw a decrease of 7% or $24,534 from the
prior year. He explained that the building is getting older and repairs need to be addressed so the
line items for maintenance and repair have increased.
Housing Manager Barnes explained that the proposed capital expenditures are lower than last
years budget and include carry-over from the parking lot resurfacing which was not completed in
2002.
Housing Manager Barnes said the debt payments will be lower as there would be a reduction in
the subsidy of approximately $30,000 when the bond refunding is complete. Commissioner
Ludovissie asked about various line items such as trash and why the numbers are so different
from 2002. Housing Manager Barnes explained how the budget is prepared by Grace
Management versus Walker and said he wants to see a balanced budget. Commissioner
Ludovissie said he wants to see numbers that are real and this is what Housing Manager Barnes
said Grace Management has done. Grace Management Representative Boedigheimer said they
prepared the budget to be reflective of how Grace would do things going forward so they would
have real numbers to look at year after year. She said that is how Grace Management will
account for the budget rather than using Walker’s budget format.
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, that the Plymouth
Housing and Redevelopment Authority Board of Commissioners approve the 2003 budget for
Plymouth Towne Square.
Commissioner Ludovissie asked about replacing the HVAC supplies and repairs. Housing
Manager Barnes said it could be due to the use of mechanical equipment that was not as efficient
as it could have been.
Commissioner Bildsoe inquired about replacing the furniture in the activity room. Cosmetic
changes were discussed. Housing Manager Barnes said they did receive a replacement
suggestion from Walker for the common areas and he said staff would look at that document.
Director Hurlburt said that the budget could be amended at any time to address this issue.
Commissioner Ludovissie suggested that we review the cosmetic changes on a routine basis.
Vote. 4 Ayes. Motion adopted unanimously.
Plymouth Housing and Redevelopment Authority
December 19, 2002
Page 5
5D. STRATEGIC PLAN
Housing Manager Barnes explained that tonight we will continue to look at the Mission and
Vision Statements, determine the Stakeholder involvement which was tabled from the last
meeting, and review the Strategic Plan priorities.
Mission and Vision Statement Revisions
Housing Manager Barnes stated that at the November meeting there were no changes
recommended for the Mission Statement but the HRA did recommend changes to the Vision
Statement. He said a red-lined version of the Strategic Plan is attached to the Staff Report with
changes to the Vision Statement. Chair Henderson asked why the Action Plan is included with
the Vision Statement. She said it looks like there are revisions being made to the Action Plan
and suggested eliminating the strategies. Director Hurlburt said the current Action Plan was
included for information only and staff is not asking for approval of the Action Plan. Director
Hurlburt stated that for the January meeting a new draft will be included which will contain the
Mission and Vision Statement, draft long range goals and draft new action plan statements.
Determine Stakeholders and Involvement
Chair Henderson stated it was her understanding that Stakeholders would be discussed in
January. Director Hurlburt said she felt we should discuss Stakeholders tonight to see if there
was some Stakeholder involvement we needed in preparation for our meeting in January or as
part of the strategies staff will be drafting for the January meeting. Housing Manager Barnes
asked if the Commissioners wanted to talk about Stakeholders in more detail in January.
Director Hurlburt said that some of the strategies may need the consent of the City Council.
Chair Henderson felt there is a separate piece such as Public Relations and felt this was the
discussion we would have tonight. Director Hurlburt said that one goal could be communication
strategies. Discussion was held about how to communicate the information to the Stakeholders.
Housing Manager Barnes reiterated that his understanding is that tonight we would like to
identify those Stakeholders who are integral to the decisions that are going to be made on how to
go forward so we can engage them between now and the next meeting and make sure the lines of
communication are open.
Housing Manager Barnes suggested that we not discuss Stakeholders involvement at this time
and move to reviewing the opportunities and ideas. He said it would be helpful to condense the
votes in the Strategy categories. He discussed where the majority of the votes are focused.
Commissioner Bildsoe stated that housing advocates should be involved in the process and
discussion took place how to involve them. Chair Henderson suggested having our plan in place
and then inviting the Stakeholders to participate. Housing Manager Barnes asked if they would
prefer to invite written comments, perhaps on draft actions that will be presented in January, or
would the Commissioners prefer to ask the local Chapter of MICAH to send a couple
representatives on their behalf to be involved in the discussion. Director Hurlburt suggested
setting a separate meeting with reaction to the public draft before we get to the final plan for
adoption. Commissioner Ludovissie wants the housing advocates of the community to have
input into this plan but feels the goals need to be reasonable and concrete. Director Hurlburt said
Plymouth Housing and Redevelopment Authority
December 19, 2002
Page 6
the input from the Housing Forum was part of what created the list and now it’s time to ask more
concrete questions of the housing advocates such as prioritizing goals.
Review Strategic Plan Priorities
Human Services
Chair Henderson suggested having additional agencies to consider. Housing Manager Barnes
asked if there are any other agencies in the community that we should be sending information to
for the RFP (Request for Proposals.) Director Hurlburt asked if we want to put an item into the
action plan to evaluate the current mix of services as they relate to the other action plan priorities
to determine if there are gaps to be filled. Commissioner Ludovissie suggested investigating
other groups that serve the community. Director Hurlburt said that when we issue the RFP’s for
CDBG allocations we include a broader range of agencies. Director Hurlburt stated that Staff
will write some action plan steps for those two items.
Economic Development
Commissioner Bildsoe explained that he gave this topic so many votes because he feels that
without economic development the rest of the City won’t function correctly. Maintaining jobs,
etc. is a responsibility for the HRA and feels the HRA should take a more active role. Housing
Manager Barnes stated that because of the economic conditions right now, businesses are
changing and there are more vacancies at this time. Commissioner Ludovissie felt that the
economic stage Plymouth is in right now might not be the same when we want to consider some
type of economic development. Director Hurlburt stated that the question tonight is do we want
a strategy related to economic development. She said at the last meeting the answer would have
been no, but Commissioner Bildsoe seems to feel strongly in this direction. Housing Manager
Barnes suggested evaluating the need and whether a staff person should be added to cover this
topic. Chair Henderson suggested coming back to the Economic Development section at a later
date. She said one part missing is records of what businesses are currently in Plymouth.
Housing Manager Barnes said the City did do a study in the past but suggested we could have a
study done that would deal with the true makeup of the City for both housing and businesses.
Redevelopment
Housing Manager Barnes explained the votes in this category. Housing Manager Barnes said
that mixed-use development votes are heavy in redevelopment and also in new development. He
asked if mixed-use development should be a single category. Chair Henderson explained why
she felt she could not move her votes into a specific item. She felt we are not initiators but are
supporters of areas that have been picked by the Council. She said she could possibly move her
votes to the passive category. Director Hurlburt asked if the strategy of redevelopment should be
that the HRA does not see itself as an initiator of redevelopment projects at this point, but any
tools that the HRA has would assist the City’s priority towards redevelopment. The HRA could
be there in the supportive role and mixed-use development will be a goal. Commissioner
Bildsoe feels that the Council might like us to suggest ideas and make recommendations. Chair
Henderson asked what category housing redevelopment is under. Housing Manager Barnes
stated it would come under Preservation. Chair Henderson asked about the study that was done
in the Elmhurst area. Commissioner Ludovissie said maybe our role is to study areas of the
Plymouth Housing and Redevelopment Authority
December 19, 2002
Page 7
community to see if there is a potential for redevelopment in certain areas. Director Hurlburt
talked about the Elmhurst area and said there was a lot of good that came out of that study, and
there may be other areas in the city where we could make a similar effort. Commissioner
Ludovissie stated the HRA should be aware of how the first ring suburbs are dealing with
redevelopment. Housing Manager Barnes suggested the reason for lack of interest in the HRA’s
rehab program from the Elmhurst area was because the income levels may have been too high
and the residents didn’t meet income qualifications. Housing Manager Barnes stated that one
strategy could be working on identifying key areas to target. Chair Henderson said that we
should include housing in that redevelopment statement. Director Hurlburt said that to identify
key areas or opportunities to target such as housing or commercial could be the most important
item. She said we could start with compiling data and looking at some patterns. Chair
Henderson asked if Preservation could be combined with Redevelopment. Director Hurlburt
said Preservation is specifically targeted at improving the existing housing stock and making
sure it continues to be affordable.
Commissioner Bildsoe discussed the County Road 101 redevelopment project. Director Hurlburt
noted that infrastructure is an important part of redevelopment.
Chair Henderson asked for clarification regarding Redevelopment. Housing Manager Barnes
replied that staff would identify the key areas and would indicate areas that would tie into
existing redevelopment efforts with relationship to the infrastructure.
First Time Homebuyer
Housing Manager Barnes said there was interest shown in revising the guidelines, which is now
being done, and looking into the idea of administration of first mortgage products such as
MHFA’s. Director Hurlburt stated that votes were not put into specific categories and asked for
more direction from the Commissioners. She asked if there would be other suggestions that were
not listed that could be discussed. Housing Manager Barnes suggested keeping ideas for those in
mind while moving on to Preservation.
Preservation
Housing Manager Barnes said there was significant interest in the area of administering
programs such as MHFA’s Fix-Up Fund. Director Hurlburt proposed a strategy instructing staff
to go forward with an analysis of looking at contracting relationships with other agencies to
manage the programs, and bring a recommendation to the Board.
Rental
Housing Manager Barnes stated that not much interest was shown in the rental category by the
Commissioners. There were only three votes placed under the area of Section 8 to
Homeownership Program so no new strategies were proposed for the rental category.
Plymouth Housing and Redevelopment Authority
December 19, 2002
Page 8
Development of New Units
Housing Manager Barnes stated that only two Commissioners voted to act as a developer. He
also explained that being a developer could mean developing and selling or developing and
maintaining ownership.
Chair Henderson asked if we assist private developers at this time. Housing Manager Barnes
replied we do. Housing Manager Barnes asked if the HRA would want to increase the amount or
be more aggressive about it. Housing Manager Barnes said there are funds that are unused at this
time, such as the tax levy and reserves and questioned if we want to maximize these amounts.
Commissioner Bildsoe said he would like to see us maximizing our funds so we get the biggest
impact for the dollars the HRA commits towards projects and programs. Commissioner
Ludovissie asked how much impact we could have in offering flexibility in regulations.
Commissioner Bildsoe felt there would be a lot of support from the City Council on this issue.
Chair Henderson asked if the offer of reduced fees, park dedication, building permits, etc. would
be the same as the flexibility spoken about previously. Director Hurlburt explained the
difference between the two, stating that the HRA would have to cover the fees because the other
funds are not set-up to fund affordable housing projects.
Chair Henderson suggested having a comprehensive list of tools available to the HRA. Housing
Manager Barnes suggested that staff could put together a list that contains things such as
abatement, TIF, etc. Director Hurlburt said that could be a strategy. The strategy would develop
a comprehensive list of tools to assess where policies and procedures are lacking that make those
tools readily available, develop that list and compile a list of those we are going to work on
immediately.
Chair Henderson asked if we actively respond to the developers. Housing Manager Barnes said
we do. Director Hurlburt said we could identify a site, such as one that would use mixed-use
development, in which we could be much more proactive in initiating a project. Commissioner
Bildsoe discussed the property behind Cub which he felt would work for mixed-use
development. Commissioner Ludovissie felt the land would be so expensive it would be hard to
work something out. Director Hurlburt said there is a property by the library that could possibly
be used for mixed-use. Director Hurlburt explained what the first steps in a strategy would be to
identify potential sites for a mixed-use project, make some initial contact with landowners and
look at project feasibility. The Commissioners agreed that a strategy should be written including
mixed-use development.
Chair Henderson asked if the staff has information that will be provided to them on the MHFA
programs. Director Hurlburt said that will be a draft strategy in the Action Plan.
Chair Henderson suggested continuing looking at ways to address FTHB needs in the
community.
Recap
Under the Development area put together a list of all potential existing available tools available
and look at whether policies need to be created.
Plymouth Housing and Redevelopment Authority
December 19, 2002
Page 9
Under Mixed-Use Development staff will put policies together and put them forth as a strategy
looking at identifying key areas that might be potential sites for mixed-use developments and
doing the preliminary groundwork to see what interest there is in owners partnering with us,
selling or getting involved to take it to the next level.
There were no new strategies under the Rental area.
Under Preservation a suggestion would be to look at administering the MHFA’s Fix-Up Fund
and put together a strategy as to how would be the best way to do that.
Under FTHB keep an open mind as to new opportunities coming through, revise guidelines for
the program, increase the mortgage amount, or change the terms of the mortgage. Housing
Manager Barnes said he was unclear as to whether the HRA wants to look into offering the first
mortgage product of MHFA which is done by larger communities or at a County level right now.
Director Hurlburt said this would bring more resources than we currently have. Housing
Manager Barnes said maybe we just need to market these programs as they are available right
now. We could put dollars into a marketing campaign.
Chair Henderson suggested a strategy to contact newspapers and see if we can get free publicity.
Housing Manager Barnes said we will be doing that in the City Newsletter and we will look into
other publications such as the Sun Sailor.
Director Hurlburt stated that since there were not any votes under the Land Trust there will not
be a strategy to support this. The Commissioners concurred.
Chair Henderson asked when housing advocates would be included. Director Hurlburt said the
Commissioners need to see the draft first and suggested revisiting that question in January and
possibly schedule a meeting between the January and February meetings for involving them.
Chair Henderson suggested that staff keep the HRA Board informed on projects that are
currently in the pipe-line.
Commissioner Bildsoe suggested booking the Plymouth Creek Center for a meeting with the
housing advocates. Chair Henderson suggested booking the February or March regular meeting
night there. Director Hurlburt said staff will check into it.
6. ADJOURNMENT
Meeting adjourned at 9:30.
HRA/Minutes/2002/121902