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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 06-15-1993MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY . JUNE 15, 1993 A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chairman David Crain on lune 15, 1993 at 7:00 p.m. PRESENT: Chairman David Crain, Commissioners John Edson, Pauline Milner, and, Brian Warhol ABSENT: Commissioner Phil Blott STAFF PRESENT: City Manager Dwight Johnson, Housing Specialist Milt Dale, Acting Community Development Director Joe Ryan, and Housing Secretary Denise Hutt PUBLIC MEETING 'PO DISCUSS HOUSING PROGRAMS FOR LOWATM LOW INCOME HOUSEHOLDS Housing Specialist Dale gave any overview of the June 8, 1993 staff report. Charley Warner, Housing Programs Manager for Community Action for Suburban Hennepin County, informed Commissioners that there is a Home Line program that formed in January, 1993 that provides tenant information and advocacy; tenant organizing; access to legal assistance; and, home mortgage foreclosure prevention. There is no cost to the tcnant. He explained Home Line relies on trained volunteers and they are funded by the federal government to primarily provide assistance to low and very low income persons. Mr. Warner stated that out of 3500 cases of tenant advocacy, 202 calls were from Plymouth residents. Home Line is currently assisting seven Plymouth families with home mortgage foreclosure prevention. Chairman Crain asked the name of the parent organization for Home Line. Mr. Warner replied that Home Line is a subsidiary of Community Action for Suburban Hennepin County and is eligible for funds from Hennepin County through the Health and Human Services Organization. Kathy De-herty of the Minnesota Housing Program emphasized the need for affordable housing in Plymouth. She stated as per the 1990 Census Report that there are 4800 rental households in Plymouth. 1 Chairman Crain responded that new projects in Plymouth involve the senior housing project and the Plymouth Housing Alliance. SENIOR HOUSING UPDATE/ADMISSION AND OCCUPANCY POLICIES/FULL FAITH AND CREDIT GUARANTEE David Grant of Walker Management informed Commissioners that the financial Pro Forma has been completed. He stated that the project can continue on schedule subject to approval of the conceptual layout by BRW Elness Architects (Arvid Elness Architects). Jay Nelson of BRW Elness Architects presented the conceptual layout of the housing project. He stated there will be two driveway entrances that are two-way. The underground parking will be one-way with an exit and entrance. There will be a walking trail or path around the building that can serve as a fire lane. Mr. Nelson stated that a decision needs to be made on whether laundry rooms should be on each wing, and if more than one trash chute should be installed. John Eamey of Walker Management stated that it would cost $67,000 for nine laundry rooms and the debt coverage would still be sufficient if the Commissioners decide to add the additional laundry rooms. Chairman Crain asked what two additional trash chutes would cost. Mr. Nelson responded that with additional trash chutes, you would loose a couple of parking spaces. Greg Oppegard of Walker Management estimated it would be about $40,000 for an additional two trash chutes and trash compactors. Mr. Nelson stated the units will include tub/shower combinations and the handicapped units will have showers. In the two bath units, one bath will have a shower, and one will have a shower/tub combination. The kitchens will have front controls on stoves; frost free refrigerator; and, garbage disposal. There will be pull out windows; one -inch mini blinds; alarms of some type; cable t.v. hook-ups; and, an air conditioner. He stated that the building itself will have a security panel in the front of the building. Chairman Crain questioned how many handicapped units are planned. Mr. Nelson responded that most project are about five percent. He stated they have not been designated yet, but there will probably be five units with five out of the 68 parking spaces designated for the handicapped. V+ Commissioner Warhol asked if one parking space is designated for a car wash facility. 0 01-., Mr. Nelson replied affirmative. Commissioner Warhol asked if the workshop is still in the pian on the parking level.. Mr. Nelson responded that the workshop was deleted because of the cost and the building code requirements for such a room. That area is now designated for tenant storage lockers. Mr. Nelson stated there will be 28 parking spaces located in front of the building with some island spaces with access to heater plug -ins. Mr. Earney gave an overview of the financial pro forma. He stated that with the inter - fund loan, there is $100,000 of additional money left. The assumptions of the financial pro forma includes that the City of Plymouth will contribute one million dollars up front; along with a $300,000 annual subsidy for the fife of the project. The pro forma also assumes the proceeds from the equity contribution will be expended on the project fust, before loan proceeds are applied. Expenditures are anticipated to increase by four percent and revenues by three percent annually. Chairman Crain voiced his concern over the fees for legal and bond counsel. He believed the HRA should not be paying double attorney fees. He questioned how the loan interest rate of 5.7 percent was determined. He thought the amount listed for yellow pages advertising was excessive. He stated he did not know if SAC/WAC/PRAC fees will be waived. Chairman Crain also questioned item #6230 Real Estate Taxes/5 percent of Shelt& Rent. He wanted to know how they came up with five percent. Commissioner Edson questioned item #8005 Cash - Beginning of the Year as to why there is a negative cash flow for all years. Mr. Earney replied that he would check into it and respond back to the Commissioners. Mr. Grant informed Commissioners that Walker Management was not prepared to discuss the issue of rent subsidy and how it should be allocated at this time. Commissioner Edson stated he would like the revised pro forma in a more timely manner to give Commissioners more review time before a meeting. Chairman Crain asked if Commissioners were in agreement to add additional laundry rooms to each wing. Commissioners responded that they were in agreement. 0 Mr. Oppegard stated he would do some additional figuring on the trash chutes and discuss it with Janet Lindbo. Chairman Crain and Commissioner Edson stated they would rather preserve the parking spaces than adding additional trash chutes. Mr. Oppegard stated the unit layouts will be refined and passed on to the Commissioners. He informed the Commissioner that Request for Proposals were sent to four firms for soil borings with three firms responding. Braun Engineering was selected. Mr. Oppegard presented the draft Request for Proposal to the Commissioners for a general contractor. He asked them to review and to contact him directly should they have any comments. The kitchen consultant will begin plans and specs for a future fidl service kitchen. The PUD application process will begin in July. Chairman Crain called a recess at 9:07 p.m. Reconvened at 9:24 p.m. MOTION by Chairman Crain, seconded by Commissioner Edson to direct staff to set a hearing date of July 20 for the financing of this project. Roll Call Vote. 4 Ayes. MOTION carried unanimously. ti Chairman Crain stated a sign should not be placed at the site yet since there was no name for the project. A suggestion was made to solicit suggestions from persons on the "interest list". Chairman Crain stated they should be informed of the theme of the project and that it would be nice if the project name included "Plymouth". EARLY CHILDHOOD EDUCATION UPDATE Jim Nicholie of Greater Minneapolis Day Care Association (GMDCA) stated the $12,000 that was allocated to GMDCA would not be adequate to cover the costs of the aurettt Plymouth clients through the end of the year. He stated that waiting fists are frozen and that the State has not been coming through with anticipated funding. Chairman Crain commented that the allocation was reduced from $25,000 to $12,000 because GMDCA was not able to expend that amount. Commissioner Edson stated the $12,000 was allocated this year because that was the amount that was spent last year. MOTION by Commissioner Edson, seconded by Chairman Crain to transfer money from Early Childhood Education and increase the total allocation to $21,000 for GMDCA. Roll Call Vote. 4 Ayes. MOTION carried unanimously. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) - SELECTION OF CONSULTANT Bill Thibault of Thibault Associates gave an overview of his proposal to prepare the CHAS. He stated that the CHAS program is about three years old, and a new five year plan is required this year. He explained that the details are much more demanding and requires early consultation with non-profit groups that are involved within the City. Mr. Thibault indicated it is yet to be decided how to blend the Plymouth data with Bloomington and Hennepin County data to produce a consortium CHAS. Chairman Crain stated that the requirements for CHAS continue to escalate and he is frustrated with the amount of money spent doing paperwork when it should be going to assisting low income persons. Commissioner Edson asked why the CHAS is being done with a consortium, as Bloomington and Hennepin County are developed, while Plymouth is a developing community. Housing Specialist Dale responded that this is a requirement of joining the Urban Hennepin County Consortium. He stated he was assured by Doug Benson with Hennepin County that the County would be more involved producing the CHAS than in the past. MOTION by Coisunissioner Edson, seconded by Commissioner Warhol to enter in to a contract with Thibault Associates to prepare the City of Plymouth's portion of the 1994- 99 99498CHAS; a one year CHAS; and, a CHAS Performance Report for 1993 on an hourly basis not -to -exceed $16,000, and not -to -exceed $2,500 for the CHAS Performance Repo-. portion. Roll Call Vote. 4 Ayes. MOTION carried unanimously. APPROVAL OF MINI]TES MOTION by Chairman Crain, seconded by Commissioner Milner to recommend approval of the May 11, 1993 minutes. Vote. 4 Ayes. MOTION carried unanimously. SELECTION OF ACTING EXECUTIVE DIRECTOR Commissioner Edson commented that Charles E. Dillerud was appointed Executive Director in January, 1992 as part of the Management Services Contract that was approved. 0 Chairman Crain suggested that Dwight Johnson, City Manager be appointed as Executive Director for the interim period. MOTION by Commissioner Edson, seconded by Chairman Crain appointing Dwight Johnson as Acting Executive Director. Roll Call Vote. 4 Ayes. MOTION ciu-ried unanimously. SECTION 8 FMR MOTION by Chairman Crain, seconded by Commissioner Edson to petition the Department of Housing Urban Development (HUD)/Minneapolis Office to increase Fav Market Rents (FMR) for the City of Plymouth.. Roll Call Vote. 4 Ayes. MOTION carried unanimously. Plymouth Housing Alliance Update Housing Specialist Dale suggested the Commissioners should no, request a construction loan for the Plymouth Housing Allisnce project until such time as more details are worked out. 10 Commissioner Edson asked when a decision would have to be made on the constaxtion loan. Housing Specialist Dale stated construction was originally slated for June IS. Chain -tan Crain suggested the Plymouth Housing Alliance might want to reconsider its decision of lowering family member size to four. Originally, it was intended to assist a family with five or more members. He thought a qualified buyer should be found -before the HRA recommends an inter -fund construction loan. Commissioner Edson commented it was his understanding that the buyer would have to put in some time (sweat equity) on the house as it was being built. He stated he is working with Dan Nelson of Best and. Flanagan on getting the filing for incorporation and applying for tax exempt status. After the corporation is established it takes 60 to 90 days for approval of a tax exempt status, he believed. Chairman Crain asked if any Commissioner would like to serve on the Board for the Plymouth Housing Alliance. MOTION by Commissioner Edson, seconded by Chairman Crain to appoint Commissioner Warhol to the Board for the Plymouth Housing Alliance. Vote. 4 Ayes. MOTION carried unanimously. FIRST TIME HOMEBUYER PROGRAM Housing Specialist Dale commented that interest in the program is picking up and the deadline for applications is June 18, 19:3. Meeting adjourned at 10:45 p.m.. RJ