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HRAM 04/03/2014 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION April 3, 2014 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:04 p.m. ROLL CALL: MEMBERS PRESENT: Larry Commers William Holm Pat Gabel Stephen Eggert Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Darin Nelson, Finance Director Jim Casserly, Development Consultant Vickie Loher, Development Consultant ACTION ITEMS: 1.Approval of Expenditures None presented 2.Approval of February 6, 2014 Meeting Minutes MOTION by Commissioner Gabel to approve the February 6, 2014 Meeting Minutes. Seconded by Commissioner Backlund. Commissioner Gabel noted on page two, second paragraph from the bottom should read “Mr. last Hickok stated that over the few months…” MOTION by Commissioner Holm to approve the minutes as amended. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED AS AMENDED 3.Public Hearing and Authorization of Sale of 587 Ironton Street NE MOTION by Commissioner Backlund to open the public hearing. Seconded by Commissioner Gabel. Housing and Redevelopment Authority Meeting of April 3, 2014 2 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:06 P.M. Paul Bolin, HRA Assistant Executive Director, stated that Prestige Custom Homes of Blaine have submitted a lot reservation agreement to build a new home on the lot located at 587 Ironton Street. This home will be custom designed to fit on this 50’ wide lot. Prestige Customer Homes, Inc. has over 40 years of experience in constructing homes. Prestige builds everything from small starter homes to large executive homes. The builder has also done a number of remodel projects in conjunction with the Twin Cities Community Land Bank. Mr. Bolin stated that Prestige plans to build a two-level home with approximately 1,144 square feet of living area. The home will have two finished bedrooms and two finished bathrooms with room for an additional bedroom on the lower level. The exterior of the home will utilize a blend of maintenance free materials and will incorporate shakes and stone on the front of the home. This home meets the design requirements of the Housing Replacement Program, while fitting on a smaller 50’ wide lot. Staff recommends approval of the resolution, authorizing the sale of the lot to Prestige Custom Homes for $27,000. Commissioner Gabel asked what the approximate selling price would be of the home. Mr. Bolin replied that the values have gone up recently and the price will be in the $160,000-$175,000 range. Commissioner Holm asked how deep the lot was. Mr. Bolin replied 110’ deep. MOTION by Commissioner Backlund to close the public hearing. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC CLOSED AT 7:11 p.m. MOTION by Commissioner Gabel to authorize the sale of 587 Ironton Street NE to Prestige Custom Homes in the amount of $27,000. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4.Approval to Offer Home Energy Squad Program (CEE) Paul Bolin, HRA Assistant Executive Director, stated that at the last meeting Center for Energy and Environment (CEE) provided information on the new “Home Energy Squad” program. The new program is an improved version of the “Operation Insulation” program Housing and Redevelopment Authority Meeting of April 3, 2014 3 that the HRA and CEE offered some time ago. Stacy Boots-Camp is here to talk about that program. Stacy Boots-Camp , CEE, stated that she was here in February and touched briefly on the Home Energy Squad enhanced program. CEE is able to deliver this program at an affordable cost to residents. The cost is only $50 to the homeowner and the HRA pays $70 for each home visit. Commissioner Gabel asked if someone can just call for names of contractors or if they have to go through the process before contractors names are shared. Ms. Boots-Camp said that the contractor names are only given out to people in partner cities. Commissioner Holm was impressed with how thorough the system is; from when the initial visit happens to when the team comes into the home with upgrades to be installed. The homeowner will save $100 or more per year, in utility bills, which will offset the cost of the visit. Ms. Boots-Camp replied that the low end of savings is $81 per household and the high end is $121 per household. This savings is due to installation of upgrades such as door weather stripping, water heater blanket, programmable thermostats and compact fluorescent light bulbs. Chairperson Commers asked if this was all installed at no cost to homeowner. Ms. Boots-Camp replied that the homeowner would pay $50 for the visit, but the upgrades are included in that fee. Commissioner Eggert asked if this also involved an attic insulation inspection. Ms. Boots-Camp replied that they do an inspection of insulation if the home is older than 1970. They don’t install insulation but would connect the homeowner with a contractor, if interested. They would also give the homeowner a ball park estimate as to what it would cost to add additional insulation. Commissioner Backlund asked if they use a blower to cut off the air intake coming in to offset the oxygen used by the furnace and water heater; otherwise the air goes to the vent. Ms. Boots-Camp replied that they use a combustion air tube and that air intake should be part of every household and is taken into account as a design of the formula. Commissioner Backlund didn’t think it made sense that it only cost $50 from the homeowner and $70 from the HRA for this large expense. Housing and Redevelopment Authority Meeting of April 3, 2014 4 Ms. Boots-Camp said that it is a big expense but the program is highly subsidized by Xcel and Center Point and is one way to re-coup the saving of energy. Commissioner Backlund asked if they do infrared heat loss. Ms. Boots-Camp replied no. Commissioner Eggert asked if they install LED lights. Ms. Boots-Camp replied that they sell them but this program doesn’t pay for them. MOTION by Commissioner Holm to approve to offer the Home Energy Squad to residents through CEE. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Informational Items 1.Update on Northern Stacks Project Paul Bolin , HRA Assistant Executive Director, stated that Mr. Hyde is re-platting the property into three separate lots, allowing him to begin construction of the first building early this summer. He anticipates that the first building will be completed by December of this year. The utility work and installation of a new traffic light will also be completed this ndrd summer. Mr. Hyde anticipates that starting construction on the 2 and 3 building, yet this year, is a real possibility based on discussions he has had with potential tenants. Mr. Bolin stated that Mr. Hyde is receiving so much interest with people looking for space that it is causing staff to make changes to the redevelopment agreement. Right now the market is better than anticipated so Mr. Hyde would like to come to the Authority in May and provide an update on some of the tenants he has been working with. Chairperson Commers asked if the changes would have an effect on the TIF funding. Jim Casserly, Development Consultant, replied that when the project goes along faster then there is a problem with the grant. So much of the work has to be done and grant funds would need to be released earlier. The banks are looking for revenue notes to be used as security for some of the notes. The changes are concentrated on the time periods, not the values. These are good changes. 2.Housing and Loan Program Update Paul Bolin , HRA Assistant Executive Director, stated that the loan program started fairly slow this year. One loan closed last month making a total of three year to date and there have Housing and Redevelopment Authority Meeting of April 3, 2014 5 been no remodel advisor visits so far this year. The Home Energy Squad program has no income limit so anyone can participate in that new program. Chairperson Commers noted that the Rosenberg Rules of Order was adopted by the City Council but HRA is established under a separate statute. He asked if this applied to the HRA. Wally Wysopal , City Manager, replied that the HRA would be able to adopt the Rosenberg Rules of Order or decide what parliamentary procedures the HRA would like to use. Chairperson Commers asked staff to put that on the agenda for consideration at the next meeting for discussion. ADJOURNMENT\ MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:40 P.M. Respectfully Submitted, Krista Peterson, Recording Secretary