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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 01-30-1992MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY JANUARY 30, 1992 A meeting of the Plymouth Housing and Redevelopment Authority was called toorderbyChairmanCrainintheCityCenterCouncilChambersonJanuary30, 1992, at 6:30 p.m. PRESENT: Chairman Crain; Commissioners Palmer, Ludovissie, Ricker and Edson ABSENT: None STAFF PRESENT: Community Development Director Dillerud, and Senior Clerk Typist Hutt. APPROVAL OF MINUTES: MOTION was made by Commissioner Ludovissie, seconded by Chairman Crain, to approve the January 9, 1992 minutes. NOTION carried, 5 Ayes. NOMINATION AND ELECTION OF OFFICERS: This item was tabled to the February 20, 1992 meeting pending appointment of one HRA Commissioner by the City Council. SENIOR HOUSING PROGRAM - PROPOSALS: Director Dillerud gave an overview of the January 23, 1992 staff report. Chairman Crain stated he did not see an indication of targeting rent subsidies. Director Dillerud replied that the Presbyterian proposal does target subsidy on the back end by showing about 1/3 of the annual HRA tax levy in their pro -forma. It could be applied by any formula. Director Dillerud stated the City of Bloomington's rent floors are $393/1 bedroom, $450/2 bedroom, and $556/3 bedroom. Commissioner Edson questioned if the Ehlers and Associates assumed its rents are before of after subsidy. Director Dillerud responded that the rents shown are after an assumed subsidy involving the site and the full HRA annual levy. Commissioner Ricker asked what these pro -formas offer that differs from any previous proposals in prior years. Commissioner Ludovissie stated the City should maintain control of the project, but by bringing in someone from the "outside", the City could reduce their risk. Commissioner Ricker concurred that the City should keep control of the project, but would need a firm to manage it. 4../ -1- The firms of Dominium Group, Presbyterian Homes, Elim Care, Inc. and Stuart04Corporationgaveabriefoverviewoftheirpro-forma/interest letter. Dominium stated their pro -forma includes a "turn -key" guarantee that the cost is a "not -to -exceed". Tl ey are willing to work in any capacity that the HRA would like. Presbyterian emphasized that they are a senior service organization, which means they provide needed services to tenants beyond the basic housing. They are guaranteed allocation for Greater Minneapolis Metropolitan Housing Corporation funds, which is a loan for project planning. Elim stressed that they serve seniors, which is an important aspect of this project. Stuart Corporation stated they would like to be the project coordinator, and have an interest in the development as they own two properties bordering the senior site. Chairman Crain stated that there needs to be a comparison of the proposals. He suggested that they start with an assumption that 100% of the units be subsidized. Commissioner Edson cautioned that if 100% of the units are subsidized that the interest for market rate units would be overlooked. Commissioner Ricker agreed that initially they should look at 100% subsidy. He stated that the HRA should help the lower income citizens, as they have the greatest need, and that is the purpose of the HRA. Commissioner Ludovissie stated that previously it has been suggested setting aside a portion of the units for "deep subsidy" and spread the remaining across the board. Commissioner Ludovissie agreed that the HRA needs to address the needs of the low and moderate income people first. Director Dillerud was directed by the HRA Commission to create pro -forma spreadsheets with the same split of apartments as in the Ehlers Analysis; full cost scenario including land and taxes; rents needed to make the project cost effective; and, add in various assumptions. Director Dillerud was also directed to do a comparison of the pro -formas that have been presented with the Ehlers Analysis. Commissioner Edson stated that Elim and Stuart Corporation could submit pro - formas to Director Dillerud as soon as possible so he would have the information for the comparison. He cautioned the developers not to spend a lot of time on the pro -formas, as this is not a formal proposal. Director Dillerud stated that this is only informal pro -formas, as it has not been advertised for proposals. YEAR END STATUS REPORTS: Director Dillerud listed what cities the portability clients are coming from. He stated that the Section 8 Program software has been loaded on the system. ti. w -2- OTHER BUSINESS: Commissicner Ludovissie stated that he has enjoyed serving on the HRA Commission for the last five years. Chairman Crain and Comwissioner Ricker stated that they would like Commissioner Ludovissie reappointed for another term. Meeting Adjourned : 15 p---