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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 02-20-1992MINUTES PLYMOUTH HOUSING BRND D V LOP ENT AUTHORITY A meeting of the Plymouth Housing and Redevelopment Authority was called toorderbyChairmanCrainintheCityCenterCouncilChambersonFebruary20, 1992, at 6:30 P.M. PRESENT: Chairman Crain; Commissioners Ludovissie, and Edson. ABSENT: Commissioners Ricker and Palmer. STAFF PRESENT: Communi Secretary DeveloWatsonpment Director Dillerud, and Planning APPROVAL OF MINUTES: MOTION was made by Commissioner Ludovissie, seconded by Commissioner Edson, to approve the January 30, 1992 minutes, with a change to paragraph 5 under the Senior Housing Pogram stating that, "The City could reduce their risk on this project by maintaining control along with bringing someone in from the outside to assist with the project". MOTION carried, 3 Ayes. NOMINATION AND ELECTION OF OFFICERS This item was tabled to the March 19, 1992 meeting. SENIOR HOUSING PROGRAM Director Dillerud gave an overview of the February 18, 1992 staff report. He stated that he had a computer set up with a spreadsheet that would allow himtochangefiguresonthepoformastoshowtherevenue/expense scenario using various assumptions. He said that he had sent a copy of the staff report to all the firms that have shown an interest in this project. CissioneWAC for the ect and whetherrthe aPresbyterian tHomes spproforma statehould be a dwwhat htheedebt ratewouldt ld be. Directorded hat uld be a Homes. charge and that he Cammissioner Edson stated that the Presbyterian Homes proforma assumed a 20 year debt term. He questioned what would determine what the rents should be after the subsidy. Commissioner Edson stated that the Commission should rel-- on those in the market place to determine what the rents should be. He said that more research was needed on some of the assumptions being made before this item is bought to the City Council. rI= Commissioner Crain stated that he wondered how detailed the Commission needed to be to bring this issue to the City Council. He said he favored having the City control the project along with an outside corporation as an advisor. Commission Edson asked that the word "control" be defined and whether control" meant policy control, controlling subsidy amounts, residency priority, or day-to-day operations. Commissioner Ludovissie stated that he felt the HRA was competent to put together a plan along with the help of an outside consultant. He said he did not favor a partnership arrangement because he.thought the City would lose some control of the project. Commissioner Edson stated that if the City did take on a partner they would have alternatives such as the City leasing the land to the partner for 99 years with revocation clauses. He said the need to discuss services for the site were as important as "brick and motar" issues. Commissioner Ludovissie stated that a partnership arrangement would need to be a benefit to the City. Commissioner Edson stated that the Commission needed to determine what its objective is and whether all the available levy amount should be used for this project, or whether some of the monies should be used on other projects. Commissioner Crain stated that with some outside expertise the project would move faster, giving the City more flexibility to use some of the levy for y other projects. The Commissioners asked the developers who were present (Dominium Group, Elim Care, Inc. and Stuart Corp.) to state how they would perform if they became a partner with the City on this project. They stated that a procedures manual which covered all the details would need to be developed and this had been done previously with other cities. Commissioner Ludovissie stated that another option could be for the City to establish a team consisting of a developer, architect and management consultant. He stressed it was important to determine what a partner or partners bring to the table as a benefit to.the City, i.e., guarantee of no losses, compared to a partner who brings cash to the development. The representative from Stuart Corporation stated that a management company will get a team together for all aspects of the project. Commissioner Edson asked what the financial benefits were to the City in hiring a management team. He asked what detail the HRA should provide to the City Council to begin processing this project. Director Dillerud stated that the City tried for many years to find a company that would put together a plan for a senior site with public assistance. He said those that contemplated such a project all indicated that additional public funds would be needed to develop the site on this premise. Director Dillerud stated that the Council direction was to talk to citizens to determine need and determine whether the project was financially feasible. 0 Commissioner Crain stated that the need is there and outside entities have said the project would work. He stated that the HRA should go forward with a recommendation to the City Council stating these determinations to find out if the City Council wants the HRA to go forward with the project. He suggested that if the Council gives the go ahead, the HRA could return to the Council in 60 days with a proposal with the City a; the developer, or a partnership. Commissioner Ludovissie stated that the HRA needed to decide how involved they want to be in the project. F%.z. said that if the HRA took in a partner it would lessen the load for the amount of staff time required. Director Dillerud stated that an option would be for the HRA to act as the developer of the project and then hire a firm as a consultant and, upon completion of the project, this firm would act as the project manager of the site. Commissioner Ludovissie stated that the City would benefit by taking an aggressive role in the project and it would be valuable experience for any future projects. MOTION by Commissioner Edson, seconded by Commissioner Ludovissie directing staff to prepare a draft resolution for the HRA for their next meeting on March 19, 1992, stating its recommendation to proceed with a City -owned senior project to include the need of services to seniors, and the concept of hiring a consultant to assist the NRA with the project. Roll Call Vote. 3 Ayes. MOTION carried unanimously. ANNUAL CONTRIBUTION CONTRACTS FOR SECTION 8 Chairman Crain introduced this agenda item per the February 13, 1992 staff report regarding Annual Contributions Contract for Section 8 Program. MOTION by Chairman Crain, seconded by Commissioner Edson to adopt Resolution 92-01 to continue the Section 8 Program at its current level of 87 certificates and approve the new ACC through October 11, 1993. MOTION by Chairman Crain, seconded by Commissioner Edson. Roll Call Vote. 3 Ayes. MOTION carried unanimously. CDBG - TRANSFER OF.GRANT FUNDS AGREEMENT Chairman Crain introduced the above agenda item per the February 14, 1992 staff report. MOTION by Commissioner Edson, seconded by Chairman Crain to recommend approval of the CDBG - Transfer of Grant Funds Agreement. Roll Call Vote. " Ayes. MOTION carried unanimously. M a ATTORNEY TO REPRESENT PLYlMUTH NRA MOTION by Chairman Crain, seconded by Commissioner Ludovissie to adopt Resolution 92-02 to appoint Robert Meller of the firm of Best & Flanagan be the legal counsel for the HRA. Roll Call Vote. 3 Ayes. MOTION carried unanimously. OTHER BUSINESS Commissioner Edson stated that it may be valuable for the Commission to toursomeseniorsitesinthearea, once direction to proceed is given by the City Council. The unan9 ouslyithatsthes3rdsThursdaynofteachemonth would berthe9HRA meetingreed dates. Director Dillerud discussed the Section 8 audit and stated that the City has made changes in their procedures as suggested by HUD. Meeting adjourned at 8:20 p.m. 0