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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 08-17-1989S MINUTES OF REGULAR MEETING HOUSING AND REDEVELOPMENT AUTHORITY OF PLYMOUTH, MINNESOTA AUGUST 17, 1989 The Rogular Meeting of the Housing and. Redevelopment Authority ras called to order by Chairman Neils on August 17, 1989 at 6:40 p.m. at the City Center Council Chambers in the City of Plymouth, ttinnesota. PRESEAT: Chairman Neils, Commissioners-LuJovissle, Palmer, and Crutzman ABSENT: Commissioner Crain STAFF PRESENT: Assistant City Manager Boyles, Planning and Community Development. Director Tremere, Housing Specialist Dale, and City Clerk Rauenhorst APPROVAL OF MINUTES MOTION was made by Commissioner Ludovissie, seconded by Commissioner Palmer, to approve the minutes of the June 1, 1989 fleeting. MOTION .tarried on a Roll Call vote, four .iyr.s. NWHHSC t'UNDING REQUEST FOR RUNAWAY YOUTH INITIATIVE O The Con-sission received a report from Hou2ing Specialist Dale on the status of the Northwest Hennepin Human Services Council (NWHHSC) goal to secure $35,000 In fund Ing from other communities and sources for a planning study on the problem of runaway youth in Northwest Hennepin County by Ouly 1, 1989. Several weeks following a $5,000 Year XV funding allocation, recommended by the NRA and approved by the City Council, NWHHSC reduced their goal to 24,000. They have kept staff apprised of their fund raising efforts to date. Housing Specialist Dale suggested that the HRA recommend to the City Council to retain the appropriation of $5,000 to NWHHSC at such time as the subrecipient agreement with Hennepin County has been executed. In response to a question by Commissioner Gutzman as to why other communities did not contribute to the NWHHSC request, Housing Specialist Dale stated that NWHHSC has indicated it will attempt to obtajn long-term funding from those communities once the Runaway Youth Program is underway. He stated that one reason NWHHSC lowered their initial funding i;oal was that most cities had already held their public hearings for allocation of CDBG funds at the time NWHHSC was looking for funding. MOTION was made by Commissioner Gutzman, secort.Jed by Commissioner Palmer, to adopt RESOLUTION NO. 89-04 RECOMMENDING APPROVAL OF $5,000 of YEAR XV COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO NORNWEST HENNEPIN HUMAN SERVICES COUNCIL FOR THE RUNAWAY YOUTH INITIATIVE. Motion carried on a Roll Call vote, four ayes. 0 HRA Meeting August 17, 1989 Page 2 The Commission considered the request of Twin City Federal Financial Services Inc. for the City to take a third position on a mortgage on a home owned by a recipient of a CDBG scattered site homeownership grant, in order for Twin City Federal to take the second position. The staff report, includit+g the input from the Authority's attorney, was reviewed. Chairman Neils stated that the intent of the grant program is to provide an opportunity for long-term home ownership and expressed concern that this request, if approved, could provide an opportunity for the owner to obtain an unearned windfall equity and then sell the home. Commissioner Ludovissie noted that this decision could set a precedent for future similar requests. He also expressed concern that this particular owner is apparently behind in mortgage payments.. Chairman Neils agreed and stated that approval of the request could allow the owner to become further in debt. It was his opinion there are other options available to the owner; at least ones where the HRA would not be asked to subordinate its interests. Commissioner Palmer stated he would not support the request. NOTION was made by Chairman Neils, seconded by Commissioner Palmer, to adopt RESOLUTION NO. 89-05 DENYING SUBORDINATION REQUEST OF TWIN CITY FEDERAL FINANCIAL SERVICES INC. on the basis that there are other options available to the owner and it is not consistent with the original purpose of the program. notion carried on a Roll Call vote, four ayes. BEACON HEIGHTS ELEMENTARY SCHOOL SITE Housing Specialist Dale repotted that application was made on June 21 with Hennepin County staff and the Citizens' Advisory Committee for CDBG Discretionary Account Grant funds for the purchase and demolition of the present Beacon Heights Elementary School and eventual construction of 8 single family houses on the site. The request is in keeping with the Scattered Site Housing Program. He recommended that CDBG years XIV and XV Scattered Site monies be utilized to develop the Beacon Heights Elementary School site should this proposal be favorably received by the County. Housing Specialist Dale stated the Citizens' Advisory Committee recommendation did notinclude the City's application, and the County Board usually accepts their recommendation. HRA Meeting August 17, 1989 Page 3 Director Tremere stated there is a basis for pursuing the possible development Of single family housing at the Beacon Heights School site even If Discretionary monies are not now available. MHFA funds, tax increment financing, or usee of funds from the possible sale of the "downtown Plymouth" senior housing site .nay be available for this effort. The School District is not interested in reopening the school. He rec,"nended that the Commission direct staff to pursue this development. The Commission discussed the various problems with the site such as unknown liability and costs involved for asbestos removal, removal of underground tanks and related inspection and correction of any soil contamination.. Chairman Neils stated he would not support the resolution proposed by staff because there are too many unknowns at this point to make a firm recommendation to the City Council to negotiate for acquisition of the site. He preferred to direct the HRA staff to further research development of the site, recognizing the possible liability and costs of acquisition. The Commission concluded they were uncomfortable making a firm recommendation for acquisition of the site with so little information. Director Tremere reminded the Commission that $239,706 in Year XIV CDBG funds must be spent or encumbered l December 31, 1989. This Is one possible use of the funds. The Commission's ..ptions are limited to using the funds for thts program or shifting the funds to another existing program. Otherwise the funds will revert to Hennepin County. Commissioner Gutzman suggested that preliminary plans or soil tests of the site could be done on a 50/50 cost share basis with the school district. It is to the City and School District advantage to determine, through experts, the extent of the liability and costs for demolition and development on the site. He suggested that staff be directed to prepare a plan including costs to address the areas of concern outlined above. Once estimated costs for asbestos removal, underground tank removal, soil correction, and demolition are received, a decision can be made on whether to proceed with the project. The Commission indicated that when the plan is completed, a public hearing will be held on the feasibility of the project. The Commission indicated that it views the Beacon Heights Elementary School site as a problem area. Chairman Neilz noted that one of the functions of the HRA is redevelopment, whether or not It is for le:. or moderate income persons. Staff was directed to proceed with negotiations for the site, keeping in mind Vie issues of asbestos, underground tank removal and related potential soil problems, and to develop a plan which would address the liabilities and costs Involved, recognizing CDBG Year XIV funds may be utilized for this purpose. J HRA. Meeting August 17, 1989 Page 4 SCATTERED SIVE HOUSING PROGRAM The Commission received information on the Scattered Site Housing Program in Eden Prairie whereby funds are used to assist qualified homebuyers with financing. The City's protection is a second mortgage which is satisfied when the property is sold. Director Tremere stated staff could study the program and report back on how the Eden Prairie program could be adapted for use in Plymouth. It was the consensus of the commissioners that staff should do that. Commissioner Ludovissie also asked that staff include information on what percentage of foome sales in Plymouth are first-time home buyers. The meeting was adjourned at 7:35 p.m. 0 City Clerk