Loading...
HRA 05/07/2009 - 29544^, CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORTTY COMMISSION MAY 7, 2009 CALL TO ORDER: Chairperson Commers called the Housing and Redevelopment Authority to order at 7:41 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Larry Commers Steve Billings John Meyer MEMBERS ABSENT: Pat Gabel OTHERS PRESENT: Mike Jeziorski, Accountant Jim Casserly, Development Consultant Paul Bolin, HRA Assistant Executive Director Scott Hickok, Community Development Director Richard Pribyl, Finance Director ACTION ITEMS: 1. Approval of F,xpenditures MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 2. Approval of March 5, 2009 Meeting Minutes MOTION by Commissioner Holrn to approve the minutes as presented. Seconded by Commissioner Billings. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 3. Approval of Income Limit Increase for Home Loan Program Paul Bolin, HRA Assistant Executive Director, said the income cap for the Home Loan Program has not changed since 2004. In 1996 the income limit was $58,000; in 2001 the limit was $60,000; and in 2004 the limit changed to I 15% of the median income with a cap of $80,000. Staff is proposing increasing the cap to $96,485, which is consistent with 115% of the median income for a four-person household. HUD annually creates median incomes based on diff'erent metropolitan areas. These numbers are updated in March. Using these figures, a single-family household would increase from $61,755 to $67,563, a two � • person would increase from $70,610 to $77,165, three person from $79,350 to $86,825 and a four person household from $80,000 to $96,485. Mr. Bolin said that staff looked at what neighboring communities are doing and the 115% of inedian income seems to be fairly consistent. Some of the cities give those with lower income the lower interest rate. Staff recommends moving forward and authorizing staff to utilize the new income limits of 115% of this year's household median income. Staff would like to go two steps further; 1) Take the cap off of $96,000, in order to accommodate larger families. 2) Allow the 115% continue into future years and automatically readjust each March or April, as HUD updates area median income. Commissioner Meyer said that he was not in favor of increasing the limits but doesn't think the loan program is used that much. Commissioner Holm agreed but it may be worthwhile to approve the program and see what happens. The goal is to improve the housing market through home improvements and it would be worth giving it a try. Chairperson Commers asked how many outstanding loans were on the books and the volurne of loans. Mr. Bolin said that the total loans are about $1.2M. The default is very minimal, about three loans or $12,000 in past due payments. When people apply for the loans, the check goes directly to contractor. MOTION by Commissioner Holm to approve the Income Limit Increase for Home Loan Program, adopt the motion for the cap to be eliminated and annually adjust limits per HUD household income. Seconded by Commissioner Billings. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED 4. Approval of 2009 Mowing Contract Paul Bolin, HRA Assistant Executive Director, said that HRA has contracted with Complete Grounds Maintenance since 2004. City Planning Staff developed a RFP for mowing services and weed abatements. They asked to provide separate quotes for mowing HRA properties. The hourly rates ranged from $32 to $101 /hr. Complete Grounds Maintenance provided lowest hourly rate. Staff Recommends the HRA continue with CGM for 2009. The service has been reliable and rates low Chairperson Commers asked what properties were being mowed. Mr. Bolin answered that there are some properties along University Avenue (both sides), some odd lots in Riverview Heights, and other miscellaneous properties. MOTION by Commissioner Billings to approve the 2009-mowing contract. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. 5. Approval of Moore Lake Drive Landscape Improvements Scott Hickok, Community Development Director, said that this is a good faith and friendly contribution from the HRA to spruce up the area. The new landscape and planter boxes create a good image for the City. The properties need to be irrigated, weeds pulled and kept in neat order. The recommendation is for HRA to contribute $4,900 for this improvement project. If HRA chooses to support this project, staff would set up the tear out and landscape to begin the week of May 18, 2009. MOTION by Commissioner Holm to approve the Moore Lake Drive Landscape Improvements. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. INFORMATIONAL ITEMS: 1. Columbia Arena TIF Request Paul Bolin, HRA Executive Assistant Director, said that the Planning Commission held hearing last night and approvals unanimously granted. Attorney Casserly met with developer earlier this week. The developer is gathering additional information needed for TIF analysis. Scott Hickok, Community Development Director, said that this project is a 176 unit senior complex on the north side of the site that will consist of an L-shape four story building and a one level nursing home. The south side will house a 50,000 sq. ft. medical facility offering service on weekdays and Saturday. The facility will have a high-end finish and a nice quality. Mr. Hickok said that they have heard from two industries from the north as it relates to their business. The businesses are concerned that they will be asked to limit their daily activity because of having residential neighbors. The developers assured the industry that they will develop the project to mitigate noise. Chairperson Commers asked what kind of assistance they were looking for. Jim Casserly, Development Consultant, said that in order to have a better understanding more documents would need to be presented. They are in the process of getting the purchase agreements and contracts together. This is a project that the developer has been working on for a couple of years. There are several problems with the site; there is a worthless building that needs to be taken down, there are nominal asbestos issues, soil issues, high water table, and a series of utilities have to be moved and relocated. Sidewalks, trails etc. are being soried out and staff is trying to understand what the additional costs will be. Staff hopes to have the information in the next week and to bring back a complete report at the June meeting. Chairperson Commers asked how the business would be structured and if there were any non-profit agencies involved. Mr. Casserly said that the nursing home component will be nonexempt (35 units) and the rest will be market rate senior rental housing. The advantage of this project is that there are no relocation costs but lot of demolition costs. There will be a lot of strange costs associated with this project. 2. Fairview / Columbia Park Sign Lease Agreement Paul Bolin, HRA Assistant F.xecutive Director, said the City was approached by Fairview clinics and as part of a merger they are re-branding their sign. Currently the clinic leases and is using part of one of the city's parking lots south of city hall. As the clinic was looking for more visibility for a sign on University Avenue, Fairview found out they cannot put up a new sign because we own the property. The City talked about getting rid of the community billboard by fire department because it is not an easy changeable sign. With budget shortfall, the project to replace that sign was put on hold. Staff had a discussion with Fairview and Fairview would like to pay for, maintain and share the sign, which would take care of their needs as well as the city needs. Mr. Bolin said that staff had a good meeting with the administrator, sign contractor and legal team to discuss this idea in more detail. Fridley's legal counsel put together a contract and would like to come back with an agreement and recommendation at the June 4t" meeting. The community billboard would come down and the sign that that says City of Fridley with the logo would also be taken down. Details need to be worked out but discussions have been very positive. 3. Legislative Update — Housing RePlacement Program Jim Casserly, Development Consultant, said that a bill was staried to help Fridley but by the time it was done, it was a statewide bill. In order for Fridley to have 100 units, it would have to be a statewide bill. As units are completed others will get started so this will be an ongoing program. The focus will be on vacant .foreclosed housing. Paul Bolin, HRA Assistant Executive Director, said that right now 44 vacant homes could be purchased through this program and 15 of the homes are under $100,000. 4. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Directar, said that in April one loan was closed so that makes three loans year to date. This past week CE sent out a mailing to try and generate more interest in our programs. As of March 31, 2009 there was one delinquency 60-90 days late for the amount of $906 and three delinquencies that are more than three months totaling $11,237. The remodel advisor visits were zero in April and total visits are two year to date. NONAGENDA UPDATE: Gatewav West - Paul Bolin, HRn Assistant F,xecutive Director, said that there has been some performance problems with �3lueprint Homes. With the overall economy today, Blueprint Homes hasn't been able to deliver on our project as they are out working on other homes. Staff recommends cutting the contract with Blueprint I-Iomes and terminating the agreement. Jim Casserly has a draft letter regarding this issue. Once the city terminates the agreement staff will come back next month with recommendations on how to move forward. ' Chairperson Commers asked what the collateral would be in the event of a default. Mr. Bolin said that Blueprint Homes only purchased one lot at a time so there is not a lot of collateral involved. Commissioner Meyer recalled that Blueprint Homes was originally was going to buy all of the lots but came back to buy one at a time. Mr. Bolin said that there is still a home in the area that doesn't have siding on it. That home will now be back in the hands of the lender. In the recent past six months, staff hasn't been able to get any performance out of Blueprint Homes. A citation has been issued for the lack of siding on that home and it is unlikely Blueprint Homes will be coming back to put on the siding. Jim Casserly, Development Consultant, said that the concern is that there is no way to work with Blueprint Homes without revising the agreement. The defaults can't be cured and Blueprint Homes has gone beyond the time they were to provide performance. Staff has put a lot of effort to try and work things out with Blueprint Homes. It wouldn't be a good decision to construct the remaining nine lots with Blueprint Homes. This is a serious matter and staff is looking for the Authority to give direction on this matter. Commissioner Meyer asked what the hurry is to move on this item. Mr. Casserly said that other agreements could not be made before the current agreement was terminated. Anything new would have to be under a new agreement as the current agreement is in default. Blueprint Homes isn't capable of performing so this matter needs to be taken care of before staff can move forward. Commissioner Meyer asked if staff has had any conversation with Blueprint Homes. Mr. Bolin said yes and lately the conversations have been furiher and further apart. The owner of Blueprint Homes is embarrassed they haven't been able to follow through and meet the terms of our agreement and city codes. For six months Blueprint Homes has promised to put the siding on that home and just recently the lender ended up purchasing the siding. It should have been installed 2-3 days ago and today the siding is still not on the house. MOTION by Commissioner Billings for staff to execute the letter to Blueprint Homes. Seconded by Commissioner Holm. UPON UNANIMOUS VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIF.D Sikh Society - Paul Bolin, HRA Assistant Executive Director, said that the Sikh Society has been having trouble getting the majority of inembers on any given Sunday to hold the vote needed to purchase and sell properties. They are trying to obtain church properiy in Blaine but that did not work and now they are looking at the site behind Super T�arget and it seems they are still planning to sell to HRA but need to do more fund raising to make the project happen. ADJOURNMENT: MOTION by Commissioner Holm to adjourn. Seconded by Commissioner Meyer. UPON UNANIMOUS VOICE VOZ'E, A1,L VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRTF.D AND THE MEETING ADJOURNED AT 9:15 P.M. Respectfully Submitted, . � Krista. Monsrud, Recording Secretary el . . � CITY OF FRIDLEY SIGN-IN SHEET HOUSING & REDEVELOPMENT AUTHORITY MEETING Name and Address �Q � Agenda Item of Interest