HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 04-20-19931 MINUTES
PLYMOU 1'H HOUSING AND REDEVELOPMENT AUTHORITY
April 2.0,1993
A meeting of the Plymouth Housing and Redevelopment Authority was called to order by
Acting Chainmen John Edson on April 20, 1993 at 7:00 p.m.
PRESENT: Commissioners Brian Warhol, Phil Blott, Pauline Milner, and John
Edson
ABSENT: Chairman Dave Crain
STAFF PRESENT: Executive Director Chuck Dillerud, Housing Specialist Milt Dale,
and Senior Clerk/Typist Denise Hutt
MOTION by Commissioner Milner, seconded by Commissioner Blott to approve the
March 9, 1993 minutes.
Vote. 3 Ayes. MOTION carried unanimously. (Commissioner Blott abstained)
SENIOR HOUSING PROJECT UPDATE
Tim Getty of Walker Management gave an overview of the focus group meetings that
were held March 16 at Plymouth City Hall. Mr. Getty stated that the participants in the
focus groups were chosen randomly from the interest list maintained at City Hall. The
groups consisted of 85 percent females; 15 percent males; equal between homeowners and
renters; 80 percent were from Plymouth; and, an average age of 75.
Mr. Getty informed the Commissioners of the different topics that were discussed at the
focus group meetings which included why residents move into retirement buildings,
awareness of other senior projects; design layout and amenities in the units; amenities of
common areas; services that should be included; and, the concept plan.
Mr. Getty indicated that most seniors in Plymouth were not very familiar with other
retirement buildings in the area.
Mr. Getty stated that the amenities desired by focus group participants included amplestorageandcupboardspace, washer and dryer, cable t.v. hookups, linen closet, garbage
disposal, microwave, air conditioner, window blinds, balconies, pass-thru feature in
i kitchen, and units that allow pets.
The common area amenities desired included hand rails, guest suite, storage lockers,
craft/hobby room, large elevators, water in hobby room, dining room, card room with
kitchenette facilities, beauty/barber shop, attractive lobby, library, greenhouse, and
underground parking.
The services that were important to the focus groups were transportation, home health
care, tie-in with Plymouth senior service, and some type of meal program.
The site plan and artist renderings were also reviewed by the focus groups with only a few
concerns such as the lack of ongrade parking; the porte cochere being high enough for
buses to pass through; and, no indication of walking paths or balconies. The focus groups
were very impressed with the design of the building.
Janet Lindbo of Walker Management discussed the possibility of allowing pets in the
facility with the designation of a specific area in one of the first floor wings; creation of a
pet walking area; and, the "grandfathering in" of pets with a maximum poundage limit set.
Acting Chairman Edson asked about the current pet policy at Westwood Ridge.
Ms. Lindbo responded that all projects under Walker management have a "grandfather"
policy with specific regulations for pets.
Commissioner Blott asked if there should be a requirement of an additional damage
deposit.
Ms. Lindbo replied that the customary pet deposit is $125 to $150.
Greg Oppegard of Walker Management outlined the construction cost comparisons. The
total square footage as per the original concept drawing of March 17, 1993 was reduced
from 122,000 square feet to 99,000 square feet. This was done by eliminating lounges at
the end of the wings and of storage lockers on each level. Further, laundry rooms on each
wing were relocated to a facility in the center core on each level. Trash compactors were
reduced from three to one, the units were reduced in size, as was the central core area.
Mr. Oppegard explained that the original concept plan has 42 percent of the building's
total space in common area and this has been reduced to 25 percent. The typical common
area of a project is 20 percent.
Acting Chairman Edson asked if by using the 99,000 square foot plan, would it bring the
project in at the projected $7,300,000.
John Earney of Walker Management confirmed that the project would fall within the
7,300,000 target.
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Acting Chairman Edson questioned whether cutting down the center core area would
cause architectural problems.
Mr. Getty responded that the focus groups were more concerned with affordable rents
than larger common areas.
Commissioner Warhol asked if there was room for expansion.
Jay Nelson of Arvid Elness Architects explained that expansion is possible off the south
wing of the building.
Commissioner Milner questioned if the focus groups wanted patios.
Mr. Getty replied that the focus groups indicated an interest for balconies on the units, but
he explained that balconies were too costly.
Commissioner Blott stated he would like to see laundry rooms on the two side wings on
each level and lounges on the end of the wings.
Ms. landbo assured the Commissioners that the laundry facilities are adequate in the
center core to serve the residents. She informed the Commissioners that 90 percent of the
facilities do not use the smaller lounges on the wings.
Commissioner Blott asked about the length of the corridors.
Mr. Nelson responded that the corridor length is about ISO feet.
Commissioner Blott asked if SAC and WAC fees are required.
Director Dillerud stated that SAC would have to be paid as it is a Metro area charge;
however, he would check on WAC fees.
Commissioner Blott wanted the Commission to proceed with the 99,000 square foot plan.
He also noted his concern over the hard construction costlunit of $48,000.
Acting Chairman Edson asked if the Commission should authorize investing the
1,000,000 collected in tax levies to date to "buy down' the project.
Mr. Earney informed the Commissioners if they invest the $1,000,000 it would save
75,000 per year in debt service.
Mr. Emmy stated that on page 3 of the proforma the assumptions used were the 99,000
square feet project; bond proceeds will be used to reimburse; and, marketing expenses of
125,000 based on 25 percent market rate units. He stated that if Commissioners decide
to go with 100 percent subsidized units, the marketing costs would be minimal.
Acting Chairman Edson asked what marketing expenses include.
Mr. Getty responded that marketing casts include the leasing agent, advertising expenses,
and direct mailings.
Ms. Lindbo clarified that there would still be approrimately $15,000 in marketing costs
even if the project is 100 percent subsidized.
Mr. Getty stated that there would not be a problem leasing up 100 percent subsidized
units.
Acting Chairman Edson commented that he does not want to eliminate market rate units
for those citizens who would not qualify for a subsidized unit.
Dan Nelson of Best and Flanagan explained that in order for the Housing Authority to get
the commitment from the City, you have to project the 110 percent of debt service
coverage for G.O. Bond financing. He stated the annual pledge amount should be set for
a flat amount, i.e. $300,000 per year for the life of the financing. Mr. Nelson informed
Commissioners that if you do not build in reserves initially, you may run into problems
when the project is refinanced.
Y Mr. Eamey stated that the proforma assumes $300,000 per year base going up at 5
percent per annum. He commented that if the Housing Authority authorizes $1,000,000
in equity, the debt coverage ratio goes from 1.0 as stated in the proforma to 1.2.
Director Dillerud stated that the tax levy collected for 1993 amounts to $366,700, while
the 1994 tax levy is projected at $377,700.
Acting Chairman Edson commented he would not allocate the total $366,700 initially as
there is a need to build up an operating reserve. He stated $300,000 would be an
adequate amount.
Mr. Earney informed Commissioners that by committing one million dollars in fiscal year
1997 with an annual subsidy of $300,000, there would be a 1.10 debt coverage.
MOTION by Commissioner Blott, seconded by Commissioner Warhol to recommend
approval of the devised concept plan for a 99,000 square foot senior housing project with
a total of 99 subsidized rental units.
Roll Call Vote. 4 Ayes. MOTION carried unanimously.
MOTION by Commissioner Warhol, seconded by Commissioner Blott to recommend that
the Housing Authority make an equity contribution of one million dollars and an ongoing
annual subsidy amount of $300,000 for the senior housing project for the fife of the
financing.
Roll Call Vote. 4 Ayes. MOTION carried unanimously.
Acting Chairman Edson suggested that the topic be included on the May 3 City Council
agenda for the Councirs discussion..
Director Dillerud stated that it would be necessary to consider the bidding process for
construction of the project.
Mr. Nelson informed the Commissioners that the Housing Authority under state law, has
control over the bidding process and that open bidding is not required.
Mr. Oppegard suggested the creation of a "short fist" comprised of the largest general
contractors willing to quote the project without any commitment from the Housing
Authority that the job would automatically be awarded to a specific contractor. This
would allow the Housing Authority to get a more accurate estimate of projected building
costs.
Acting Chairman Edson stated he would like the "short list" of contractors to be presented
to the City Council at its meeting of May 3 for their input and approval.
CITIZEN PAILMEPATWH PLAN
Housing Specialist Dale gave an overview of the Citizen Participation Plan and presented
a revision to the April 12, 1993 memo.
MOTION by Commissioner Blott, seconded by Acting Chairman Edson to recommend
approval of the Citizen Participation Plan.
Roll Call Vote. 4 Ayes. MOTION carried unanimously.
Housing Specialist Dale gave an overview of the April 15, 1993 themo.
Acting Chairman Edson questioned the need for $2,000 from the Section 8 Operating
Reserve to create a non-profit corporation.
Director Dillerud replied that it would pay for the City Attorney to file for incorporation
of the "Plymouth Housing Alliance".
Acting Chairman Edson stated he would take care of filing for 5010 status for the
Plymouth Housing Alliance for no charge.
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MOTION by Acting Chairman Edson, seconded by Commissioner Blott to recommend
approval of the use of up to $2,000 of Section 8 Operating Reserve funds for the creation
of a 5016 non-profit corporation.
Ron Call Vote. 4 Ayes. MOTION carried unanimously.
TATION FTtM URBAN flENNEPIN COUNTY TO RMI N ASA
PtILRTIC ATQIG COMNENM
Housing Specialist Dale gave an overview of the April 9, 1993 memo.
MOTION by Acting Chairman Edson, seconded by Commissioner Warhol to recommend
retaining entitlement city status.
Vote. 4 Ayes. MOTION carried unanimously.
OTUR BUSINESS
Commissioner Blott voiced his concern over the 573,000/unit cost for the senior housing
project and the high land fin costs shown in. the financial proforma.
Acting Chairman Edson stated he would like the marketing expenses identified, and wouldlikeaquoteandfromseveralattorneysforattorneyandbondcounselfees.
Commissioner Blott stated the architect should make bi-weekly visits to the senior project
during construction.
Meeting Adjourned at 9-45 P. NL