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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 04-21-1994MII 'UTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY APRIL 21,1994 A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chairman David Crain on April 21, 1994. PRESENT: Chairman David Crain, Commissioners Marjie McFarland, John Edson, Brian Warhol and Thomas Rugh ABSENT: STAFF PRESENT: Executive Director Anne Hurlburt, Housing Specialist Milt Dale, Housing Secretary Denise Hutt APPROVAL OF MINUTES MOTION by Commissioner Warhol, seconded by Commissioner McFarland to recommend approval of the March 17, 1994 minutes. Vote. 5 Ayes. MOTION carried unanimously. SENIOR HOUSING PROJECT UPDATE Donna Flaata of Walker Management presented Commissioners and staff with weekly updates for the senior housing project. She informed Commissioners that Sarah Miller, manager, has received 450 telephone calls and 46 walk-ins since April 1, 1994. A total of 653 applications have been mailed out with 323 received through April 21, 1994. All applications were held until the end of the day on April 11, at which time they were randomly drawn and reviewed for preferences. Ms. Miller is processing 30 applicants per week and making appointments for applicants to interview starting the first week in May. The majority are Plymouth residents over the age of 62. Director Huriburt asked how many of the applicants responding to date are homeowners. Ms. Masts was not sure of the exact number of applicants that were h ameowners, but the market value of the majority of their homes ranged from $80,000 to $100,000. Commissioner Edson believed while the building could be filled with very low income applicants, he wondered if the budget could accommodate only very low income residents. Ms. Flaata responded the budget could not handle all very low income residents and therefore, low income renters would also be approved. 0 Housing and Redevelopment Authority April 21, 1994 Page #24 APN Greg Oppegard of Walker Management stated the project is progressing on schedule with favorable weather allowing them to complete the roof trusses and make up some of the time previously lost. Frana and Sons are still asking for an extension, but Mr. Oppegard will request them to put together a revised schedule. Sheet rocking will begin a provided building inspections are completed. By the end of May the roof should be capped and the building sheet rocked, allowing for the project to be back on schedule for an October 1 opening. Walker has accepted a brick panel and will have a complete mock up done for Commissioners to look at on site. Walker has received a warranty from Minnesota Brick to hand sort "seconds" to allow only the best to be used. If Walker rejects any of the bricks, Minnesota Brick will have to supply replacements free. Mr. Oppegard stated NSP needs to install a switch gear and transformer next to the generator, which is to be located in front of the dining room area. The transformer is about five feet tall. This locations places it in the closest proximity to the electrical room. They have looked into the possibility of relocating it to the back of the building however, this would bring it too close to the buildings next door. A possibility would be to move it farther away, but this would be an additional cost of $15,000. The generator, off-white incolorwouldbescreenedbyafenceandlandscapingandwouldnotdetractfromthe building, but with the addition of the transformer, the visual impact would be too large. Commissioner- Rugh asked if it would be feasible to have the transformer and generator recessed in the ground on concrete and have it surrounded by landscaping. Mr. oppegard responded that it may be a good idea to have it recessed, but he was not sure of the cost involved. He will obtain a cost proposal from the electrician and get approval from Director Hurlburt before proceeding. Chairman Crain commented that if the generator and transformer can not be recessed, it would be preferable not to locate both together. Mr. Oppegard stated he needed direction on the issue of the stairwell. Did Commissioners want to proceed with the domed stairwell as proposed by BRW Elness Architects. The cost involved would be $8,000 as proposed, or $5,800 if the curves in the dome are eliminated. He informed Commissioners there is sufficient funds to cover the proposed dome. Commissioner McFarland commented she would prefer the concept BRW Elness Architects proposed, as it is more aesthetically pleasing. Commissioner Edson asked what a person would see from the third floor corridor. Housing Specialist Dale replied they would see the walls enclosing the dome. 0 Housing and Redevelopment Authority April 21, 1994 Page #25 Chairman Crain and Commissioner Edson suggested Walker go ahead with the dome as proposed by BRW Elness Architects. MOTION by Commissioner Edson, seconded by Chairman Crain authorizing staff to execute a change order for the curved dome as proposed by BRW Elness Architects. Vote. 5 Ayes. MOTION carried unanimously. COMMUNIW BUILDERS PROPOSAL Housing Specialist Dale gave an overview of the April 15, 1994 staff report. Bruce Larson, President of Community Builders, stated they are requesting $40,000 of Community Development Block Grant (CDBG) funds in 1994 to use for a Lease to Purchase Program. The Lease to Purchase Program is for low to moderate income families to allow them the transition into homeownership. He explained how many low to moderate income families face considerable barriers in achieving homeownership. This program allows a family to lease for two years until the family resolves bad credit or obtains a stable working environment. After that time, they would take on the responsibility of homeownership. Mr. Larson stated St. Louis Park, Minnetonka and Mound are willing to participate in providing funds for this program. Community Builders is looking to purchase two homes in Plymouth, rehabilitate as necessary, and then lease for two years, at which time the family would take over ownership of the home. Chairman Crain questioned if two years is a reasonable amount of time for the family to become homeowners. Mr. Larson responded that over a longer time period, the family will more likely revert into the role of a renter. A time period of two years is more realistic and is an obtainable goal for most families. Minneapolis currently has a one year time period for their program. Chairman Crain asked if there is a recovery process for funds if the family sells the home, as we currently have in our Rehabilitation GranVUan Program and our First Time Homebuyer Program. Mr. Larson replied that there would be a fund recovery process. Chairman Crain questioned if Community Builders would be looking at the entire area of Plymouth for purchasing the homes. Mr. Larson responded affirmatively. Housing and Redevelopment Authority April 21, 1994 page #26 Commissioner Rugh asked if any studies have been done to show there is a need for this type of program. S st Dale commented that only one of six applicants for our First TimeHousingpHomebuyerProgramin1992couldgetpre -qualified for a mortgage due to either poor credit or inability to find an affordable home in Plymouth. Mr. Larson stated in his conversations with Interfaith outreach Interfaith and Community chh nd mmunity there is a definite need in Plymouth for this program• Partners serves seven different Pus an residents. as 400 families in Plymouth, with 50-55% of their fimding going Plymouth Chairman Crain asked how marry families have dropped out of the program offered by Minneapolis. Mr. Larson was not sure, but he would get that information for the Commissioners. Commissioner McFarland questioned if Plymouth has homes available that would be suitable for the Lease to Purchase Program. Hong Specialist Dale stated a survey has not been done, but he believed not many Plymouth homes would need to be rehabilitated. Commissioner Warhol commented that some homes may need to be handicapped accessible. Mr. Larson stated that Community Builders looked at housing lists approximatelY eightmonthsago, and at that time there would be an adequate housing stock to pull from forthisprogram. The targeted purchase price for homes would be $50,00-$75,060, with a limit of $80,000. Chairman Crain thought maybe more homes would be available from seniors who lease up at Plymouth Towne Square. Commissioner Warhol suggested Plymouth's First Time Homebuyer applicants receive preference for the Lease to Purchase Program. Mr. Larson responded preference would go to Plymouth residents who have barriers to overcome to secure homeownership. Commissioner McFarland wondered if Community Builders' schedule may be tooambitious, i.e. acquiring homes in July and moving families in by September. She asked if other programs move this quickly. 0 Housing and Redevelopment Authority April 21, 1994 Page #27 Mr. Larson replied Community Builders plans on purchasing eight homes this year and 12 homes next year. He responded that by proceeding with two or more homes at a time, they are able to move forward quickly. MOTION by Chairman Crain, seconded by Commissioner Edson to hold a public hearing on reallocating Community Development block Grant (CDBG) funds in May to discuss the proposal by Community Builders. Vote. 5 Ayes. Motion carried unanimously. Director Huriburt stated that due to the need to expend CDBG funds promptly, more public hearings were being held than normal. She would like to see that changed. She believed two public hearings per year would be sufficient. Commissioner McFarland asked where the funds would come from if this request was approved. Chairman Crain replied the funds might be taken from the First Time Homebuyer allocation as this program would achieve the same goal. Director Hurlburt suggested using the $20,000 previously allocated to the senior services planning to cover part of the request by Community Builders. Chairman Crain commented it is possible Community Builders may come back annually requesting additional funding. TAX F-021MMME LOT Housing Specialist Dale gave an overview of the April 13, 1994 staff report. Chairman Crain asked how this lot could be a tax forfeiture lot when there were no delinquent taxes shown on the Assessing Division's Tax Forfeit Land Analysis form. Housing Specialist Dale replied the property has $188.52 in unpaid specials. Director Hurlburt commented she believed the developer went bankrupt. Commissioner McFarland wondered if the family that was chosen for the lot on Fernbrook and County Road 9 would be willing to trade for this lot. Housing Specialist Dale stated he has talked with the Plymouth Housing Alliance regarding the possibility of swapping lots. The lot on 53rd Avenue would be more preferred even though there is railroad tracks behind the property. The City can get this Housing and Redevelopment Authority April 21, 1994 Page #28 lot at no cosi Lad it would help the Plymouth Housing Alliance to reduce its front end costs. Commissioner Warhol asked if the City always has first chance of 0taining a tax forfeiture lot. Commissioner Edson replied the City has the opportunity to acquire any tax forfeiture property prior to public sale. He commented if the Plymouth Housing Alliance was to build the house on the tax forfeiture lot, it would have to be designed to fit. into the aesthetics of the existing neighborhood. Chairman Crain voiced his opposition of swapping the Fernbrook lot for the 53rd Avenue lot for the Plymouth Housing Alliance. He stated he would like to see the house built on the Fernbrook lot as it is more visible, and the 53rd Avenue lot would make an excellent second lot for a Plymouth Housing Alliance project. Commissioner Warhol stated it would cost more to build on the 53rd Avenue lot, as there is the requirement for triple pane windows and thermal insulation because of the railroad tracks located behind the property. Commissioner McFarland wondered if the surrounding neighbors of the 53rd Avenue lot wadd voice objections to this project. Director Hurlburt responded if the house plans meet zoning and building code requirements, there should not be a problem. Commissioner Edson agreed with Chairman Crain that the Plymouth Housing Alliance should build on the Fernbrook Lane/County Road 9 lot first. MOTION by Commissioner Edson, seconded by Commissioner McFarland, requesting the Plymouth City Council take action to secure tax forfeiture Lot 25, Block 1, Pine Ridge at Bass Lake. Roll Call Vote. 5 Ayes. MOTION carried unanimously. METRO COUNCEL HOUSING AMVIT1ES SURVEY Director Hurlburt asked Commissioners for their comments on the Housing Activities Survey sent by Metropolitan Council. Chairman Crain suggested emphasis be placed on removing state and federal barriers now laced on cities to enable communities to provide more affordable housing. He suggested the following items be ranked higher: Evaluate and recommend ways to streamline the Housing development review process, Develop and conduct an affordable housing 0 Housing and Redevelopment Authority April 21, 1994 Page #29 public information program; and, Provide general obligation backing of qualified housing bonds. He commented Analyze the need for changes in work force doming should be ranked lower. He suggested success stories be emphasized and indicate how they were accomplished. Commissioner Edson commented cities have no control over the free market. Chairman Crain generally agreed with the top five ranking of the issues currently impeding the development of low and moderate income housing in Plymouth. Commissioner Edson commented the issue of Poor access to services and employment because of the diansportadon&ansit system should be in the top five. Commissioner McFarland concurred the transportation issue is of high importance. ri OiRMATION ITEMS Chairman Crain asked what other property would be available for Hammer Residences. Housing Specialist Dale replied the City owns property at the end of Black Oaks Lane near Fire Station Number 3 that may be sub-livided into one or more lots. d' Director Hurlburt asked if Commissioners would like the Hammer Residence proposal on the May agenda. Chairman Crain questioned what role the Housing Authority would have with Han -ter Residence. Housing Specialist Dale replied the involvement of the Housing Authority would to donate the land. Hammer Residence is looking at building a $200.000 home having six bedrooms. Commissioner McFarland questioned if the land available on Black Oaks Lane would be large enough to handle this project. Housing Specialist Dale responded the land could accommodate the project provided wetland issues/requirements are met. Housing Specialist Dale informed Commissioners that the Plymouth Housing Alliance met with the Interfaith Outreach board. Interfaith Outreach has agreed to donate $12,500 to the Housing Alliance provided they match that amount. Commissioner Warhol stated Interfaith Outreach would be willing to donate $25,000 if the Housing Alliance would agree to a joint venture on this project. 0 Housing and Redevelopment Authority April 21, 1994 Page #30 Commissioner Edson suggested the joint venture between the Plymouth Housing Alliance and Lrterfaith Outreach be pursued. MEETING ADJOURNED AT 8:50 P.M.