HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 11-19-1987MINUTES OF REGULAR MEETING
HOUSING AND REDEVELOPMENT AUTHORITY OF PLYMOUTH, MINNESOTA
NOVEMBER 19, 1987
A Regular Meeting of the Housing and. Redevelopment. Authority of Plymouth, was
called to order by Chairman Neils on the 19th day of November, 1987 at 6:38
p.m. at the City Council Chambers in the City of Plymouth, Minnesota.
The following members of the Authority were present: Chairman Neils,
Commissioners Cutzman, Ludovissle, and Crain who arrived at 6:44 p.m. Also
present were City Manager Willis,. Planning Director Tremere, Housing
Specialist Dale and City Clerk Brandt. Commissioner Hillstrom was absent.
MINUTES
MOTION was made by Commissioner Ludovissle, seconded by Commissioner Gutzman,
to approve the minutes of the October 13 public hearing/special meetinq as
presented.
Motion: carried, three ayes.
ELDERLY HOUSING SITE
Manager Willis introduced Michael Grossman from Ehlers and Associates.
Michael. Grossman, stated three development proposals were received, i.e. from
or t13ge, Stuart Corporation, and ASP Construction Co., Inc. One proposal,
from ASP Construction Co., was based on the City's owning and operatinq. the
project. Mr. Grossman did not believe the City was favorable to ownership nor
did the proposal meet the intent of the Request for Proposal. He summarized
the two remaining proposals as to the anticipated costs each developer
believed would be needed to develop the site. It was his opinion that both
developers needed to provide more cost figures.
Mr. Grossman provided a "Recap of Developer Proposals" that showed Stuart
Corporation's total costs would be about $600,000 less than that of the North
Ridge proposal. However, the Stuart Corporation proposal failed to show
operating costs during the start-up phase.
Discu.3sion followed on the amount of subsidy the developers expected and that
even though these are initial proposals, they are a long way from firm,
realistic numbers. The possible use of additional Community Development Block
Grant (CDBG) funds, and how long the City would have use of those funds were
also discussed.
Chairman Neils stated a lot of City time and money have gone into research on
this project over the past several years. He asked whether the Commissioners
were willing to consider either doing -the project or acknowledging that it is
unfeasible and return the COBG money for the site back to HUD. The property
could then be developed for market rate rental elderly housing with some lower
cost housing.
RIEGULAR HRA MEETING
November 19, 7
Page Two
40
Commissioner. Gutzman asked if the Authority has levied the full amount allowed
for housigg authorities.
Chairman. Neils answered that the HRA doesn't levy the full amount. The
Council has levied an amount for support of HRA activities.
Discussion continued on whether the Council would approve subsidy payments to
the developer, how many of the units would have to be subsidized, market value
of the property, and if the City could purchase the land and sell It to a
developer for predominately market rate senior housing.
Director Tremere asked if the Commissioners would want to meet with the
prospective developers.
Chairman Neils answered that he didn't believe the HRA or Council would be
Interested. Both the proposals require a local subsidy that is too high.
NOTION was made by Commissioner Gutman, seconded. by Commissioner Ludovissle,
to adopt HRA RESOLUTION NO. 87-06 RECINMENDING REJECTION OF ALL PROPOSALS FOR
ELDERLY HOUSING DEVELOPMENT due to the substantial and excessive local
financial commitment requirements.
Motion carried on a Roll Call vote, four ayes.
NOTION was made by Commissioner Gutzman, seconded by Chairman Neils, to
recommend that staff be directed to determine opt! -)-is of site disposition and
assemble and prepare options and evaluations of how market rate housing might
be de-eloped with some support by the City but without CDBG program
constraints.
Notion carried, four ayes.
The meeting adjourned at 7:50 p.m.
T*Wo VA
fretary