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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-21-1992XXNUTS8 PLYNOUTB HOOSXNG AM A7®8V8LOPXNNT AUTBORITr JULY 21, 1992 A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chairman Dave Crain in the City Center Council Chambers on July 21, 1992, at 6:30 p.m. PRESENT: Chairman Crain, Commissioners Edson, Blott and Milner ABSENT: Commissioner Ricker STAFF PRESENT: Community Development Director Dillerud, Housing Specialist Dale, and Senior Clerk/Typist Hutt. APPROVAL OF BERM= MOTION by Commissioner Edson, seconded by Commission Milner to approve the Junk, 16, 1992 minutes. Rmmmov- 'M Start CerpaVtia Kristen Rieser, reptesendng Stuart Corporation, stated that Stuart Corporation has over 20 years of experience. She outlined their role would be to work side-by-side with Chuck Dillerud and staff, attend meetings, and provide written periodic updates. Stuart Corporation would act as a management entity for the first two years. Currently they have 3,500 units in their management portfolio. Ms. Rieser stated that it would be important to target Plymouth residents, and was confident Stuart can accomplish this goal. She further emphasized Stuart Corporation would not just turn over the keys once they are issued a Certificate of Occupancy but have the capability to perform all necessary management functions. Ms. Riser stated that the contract could be terminated upon a 30 day written notice from the HRA with a two month guarantee. The HRA could veto any change orders. Commissioner Edson questioned what role Stuart Corporation would assume. Ms. Rieser staled that Stuart Corporadon would act on behalf of the HRA. Commissioner Edson asked if Stcpart has ever worked with another contractor in this role. Mr. Nolan responded that Stuart lows both sides of the issues, as they have acted as both contactor and project coordinator. Attorney Nelson wgnted to know if Stuart would be the general contractor resulting in a possibility of doubling on fees. Mr. Nolan stated that Stuart would not be the general contractor but would be representing the HRA. Commissioner Edson asked if the marketing fee equals 50% of each unit. Mr. Sovell stated that it is 50% for one month per unit, which compensates for all marketing costs. Commissioner Edson asked if the initial rent up should be established. Ms. Rieser stated that will be done up front. Commissioner Edson questioned if the monthly management fee of $33.50 per occupied unit would be fixed regardless of the rent for the unit. Mr. Sovell stated the typical fee is 5% of rent. Commissioner Blott asked what is the industry standard per unit construction cost for senior housing. Mr. Sovell stated that it depends upon the level of finishing, common areas, architect foes, and soil tests costs. He stated it could be done for about $40,000 per unit. Commissioner Blott asked what is the estimate on the rest of the costs. Mr. Sovell stated without land costs, but including architect foes, bond issuance, legal fees, and interest during construction, it would be about $50,000 per unit. Commissioner Edson asked if they built Westwood Ridge. Mr. Sovell answered affirmatively. He said this project cost about $60,156 per unit, which included land and development costs. Chairman Crain asked what would the consultant suggest as the next steps. Ms. Rieser responded they would take all information the City has gathered internally; determine staff goals; review all reports and determine which need to be updated; decide costs and go from there. Chairman Crain stag that the HRA desires involvement from seniors in the community and wanted to know if Stuart has worked with senior groups. Mr. Sovell responded they have worked with senior groups from implementation through completion on projects. Ms. Rieser indicated she knows the HRA wants to be actively involved and that they want input from the seniors. 0 Ms. Rieser emphasized that an architect should be selected immediately. Stuart would work with the HRA in this selection process. Mr. Rieser stated that it would be important to work with the seniors to get their input as to services and layout of the building. Chairman Crain asked what Stuart meant by "quality engineering" in their proposal. Ms. Rieser stated they would determine in the planning stage if a design element is very expensive, and figure out a way to accomplish the same affect at a lower cost. She cited a project in St. Paul that had a chandelier with many small light bulbs which kept needing replacement. Wasm Maoegen"M Walker presented a video stressing that the needs of seniors today are met by Walker Management. Walker's success comes from caring for seniors. Mr. Grant stated they would begin a two step analysis which would involve making sure there is a market for the project. If there is insufficient interest they would, either change the project or stop the project. The second phase would be to see what the community thinks about the project intended. Does the senior population like it, are they interested, and would they move in? The next phase would be to look at other aspects in the feasibility study. A further phase would be to work with the design staff to conceptually visualize the project. When that is done, they would run that design through the senior focus groups. Finally, they would try to determine what that project would cost, and how it would be financed. Mr. Obegard stressed that his primary concern is that the constructiop is completed on time and within budget. Ms. Morgan described how they can help with the space design, and marketing early in the development process. She indicated it was necessary to create an awareness of the facility in the community. They would also provide management orientation for staff on site. Chairman Crain wanted to know why their fees are higher than other firms, and asked if that includes the architect fee. Mr. Crain wondered if they have had experience involving seniors in discussion groups. Mr. Grant responded they like to have input from seniors. He stated they are flexible on fees. Chairman Crain asked if there was the possibility of other organizations supporting fund raising. Mr. Grant stated Walker has always done fund raising for projects owned by Walker. Commissioner Edson asked for clarification of their fees. Mr. Grant stated if it were a $5 million construction contract, Walker charges 5% and they pay the architect. Commissioner Blott queried if Walker is "non-profit". 0 Mr. Grant stated that Walker Management is making the proposal and they are "for-profit". Commissioner Blatt asked if Walker Management has represented other housing authorities. Mr. Grant responded that Westwood Ridge was a project with the Dakota County. Commissioner Edson asked if there is a flat fee for marketing. Mr. Grant explained that marketing costs are related to how hard it is to fill the building. Director Dillerud questioned if that can be determined on the front end. Mr. Grant stated that Walker would work with staff and the HRA to develop that budget item and have it in the project costs. Commissioner Edson queried where the cut off point is between "interim management" and full service management". Ms. Morgan responded that "interim management" is about six months from when project is due to open and continues until about four months after opening. "Full service management" starts after 95% occupancy of the building is achieved. Attorney Nelson asked if Walker bines out subs or do they see themselves as the representative of the owner. Mr. Obegard stated they would act as the owner's representative. Commissioner Edson questioned if they include any resident services in the basic management fee. Chairman Crain called for a recess at 8:15 p.m. Reconvened at 8:25 p.m. WESTWOOD PROFESSIONAL SERVICES, INC. Mr. Krier stated that Westwood would work as an extension of the HRA staff. He indicated be has 26 years of experience working with housing authorities. Westwood would work with REM Development as a team. Mr. Krier detailed how there would be three phases to the project. Phase One would be to develop the product and senior services. Within this phase, the HRA could give a 15 day notice to Westwood if the HRA decided to terminate the project. Phase Two would be the pre - construction phase. Phase Three serves as the implementation phase and consists of marketing, property management, and leasing of units. Mr. Yurick of REM Developmem stated the concept is to develop and manage a project for seniors. The seniors have to be involved and REM would be involved in training leasing agents on how to relate to seniors and other management functions. 0 InCommissioner Milner asked about financing. 1 Mr. Krier responded it would be fnimced through issuance of bonds. Commissioner Edson asked if they build -in a fee for services in the project budget. Mr. Krier answered that direct costs are listed in the proposal and that there are no hidden foes. The management fee is S%. Chairman Crain commented that Westwood has a small stats. Mr. Krier confirmed that there would be only two people that would handle this project, himself and Mr. Yurick, and they would be available to the HRA at any time. END OF INTERVIEWS Commissioner Edson requested that the board interview Dunbar at a future meeting. Commissioner Blott requested that the board also interview Dominium as it is a Plymouth based firm. The board directed Director Dillerud to set up interviews with Dunbar and Dominium for July 29, 1992 at 7:00 p.m. Director Dillerud stated that applications for Section 8 waiting list are complete. Meefiog Adjourned at 9:30 p.m. PA