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HRAM 02/01/2018 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION FEBRUARY 1, 2018 Chairperson Gabel called the Housing and Redevelopment Authority Meeting to order at 7:00 p.m. MEMBERS PRESENT: Pat Gabel William Holm Stephen Eggert Kyle Mulrooney Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Wally Wysopal, City Manager Scott Hickok, Community Development Director Vickie Johnson, Development Consultant Action Items: 1.Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures. Seconded by Commissioner Eggert. Commissioner Holm asked what the payments were to Briggs and Morgan. Paul Bolin , HRA Assistant Executive Director, replied that is for the municipal bond advising for a potential bond issue for Hyde’s revenue notes; they did the work on that for the Authority. Commissioner Holm asked what the bank drafts and checks were. Mr. Bolin replied that the bank drafts are electronic transfers and paper checks are also issued. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of January 4, 2018 Meeting Minutes MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY Housing and Redevelopment Authority Meeting of February 1, 2018 2 3.Approval of Development Agreement – Locke Park Pointe Paul Bolin , HRA Executive Assistant Director, stated that Pulte Homes was selected through the RFP process and the redevelopment contract was developed over the past month. Pulte will pay $25K for each residential lot, construct the public improvements and in the event of default, HRA can recover the property. Staff recommends the Authority adopt the resolution authorizing the execution and delivery of the contract between the Authority and Pulte Homes. Eric Padget, VP Pulte Homes, said that Pulte is a broad group and has other brands including Centex, and Del Webb. Pulte is a national developer/builder and builds 500 homes per year in 18 Twin Cities communities. Patio home products have not been served in quite some time. 25 patio homes are proposed on this site and the target consumer group is the 55+ age. This age group will stay in the local market, they have an active lifestyle, and want a quality product in the right location where the economic value is strong. There is a demand in Fridley for this product. Mr. Padget noted that the homes will have 50’ lots and 40’ of product in front. This will be single level living with a total of 1,700-2,000 sq. ft. including 2-3 bedrooms and a two-car garage. The price will average $300,000. Although the homes will be on a slab, homes will be able to have a basement. There are 4-5 floor plans available, some with basements and ½ story option for an additional bedroom / loft area. The architecture styles are heartland, craftsman, northern craftsman, prairie and euro country. There will be a variety of home options for this community and there will not be two houses with the same style built side by side. The homeowner’s association will be professionally managed and take care of yard mowing/maintenance, snow removal of driveways/sidewalks and common landscape areas. The HOA fee is $176 a month. There is already a great demand and a list of VIP candidates has started. Once the road restrictions come off in May the plan is to get City Council approval on the preliminary plat May 14 to close on the property and then start construction. There will be a 4-5 week grading job and 6-8 weeks of infrastructure work. Construction of the model home will start after that and will be built in about 60 days. The plan is to open in October with a model home for sale. Commissioner Holm asked if each of the homes would have the same footprint; regardless of the architecture. Mr. Padget replied that the square footage of the homes will range from 1,700 to 2,000, all about 40’ wide. Any architecture will fit on any of the lots. The depth of the homes is what changes with the square footage. Commissioner Holm asked where the half level loft would be located in the home. Mr. Padget replied that it would be centrally located in the home, in the mid-peak of the roof. Housing and Redevelopment Authority Meeting of February 1, 2018 3 Commissioner Eggert asked if Pulte would do their own selling of the homes. Mr. Padget replied yes, internal sales consultants would be taking care of all the sales. Commissioner Eggert asked if the homeowner’s association would take care of the retaining pond or if the City would. Mr. Padget replied that is undecided yet; it needs to be discussed with the City. Commissioner Eggert asked about the default language and the Authority getting the property back and on page 20 where it talks about utilities in Schedule D, the language was confusing. Vickie Johnson , Development Consultant, replied that the requirements for public utilities platting process the City will include those utilities in the plans, where they are located and installed. This will be discussed in detail through the planning process. The events of default are defined and if the redeveloper failed to follow the terms, a reverter would be written up. Once the model home has certification of occupancy, they have met the requirements. Commissioner Eggert asked how much the public improvements would be. Mr. Padget answered $40,000-50,000 per lot to make public improvements, not including soft costs. Commissioner Eggert asked how much would be recovered in the case of default. Ms. Johnson replied that the $50,000 item in the Authority default is if the Authority defaults and doesn’t sell the property to the developer. In the event the redeveloper would infringe on the agreement, the HRA would retain the property back which would include any public improvements done by the developer. Commissioner Backlund asked about the setbacks and sidewalks. Mr. Padget replied that the setbacks would meet City standards of 25’-30’ back. There is a plan for sidewalks along where the public utility building is located. Sidewalks will be on one side of the street only. Commissioner Backlund asked if there would be cathedral ceilings in the larger rooms. Mr. Padget replied that the base on the lower level is 9’ and the loft will have higher ceilings; 10-12 ft. with roof pitches. Commissioner Backlund asked if the owners were allowed to do different things that are placed on the buildings. Housing and Redevelopment Authority Meeting of February 1, 2018 4 Mr. Padget replied that there is an architectural committee to take care of those requests. Standards are set up and if homeowners would like a modification they would send to the HOA for an architectural approval. Modifications to the landscape is fairly strict due to the maintenance of property. Commissioner Backlund asked if homeowners could hire their own contractors. Mr. Padget replied yes, but they would still have to pay the HOA fees. Commissioner Eggert asked if any engineering had been done to the site on the Cities behalf. Mr. Bolin replied that the City has done several borings on this site and provided all the information to Pulte. Commissioner Backlund asked what the warranty was on the house. Mr. Padget replied that quality is top priority and every home has a warranty package with a variety of warranties for different things. Warranties will be reviewed with the homeowner and is part of Pulte Homes. Ms. Johnson noted that in Section 2.1 regarding the soils, the Authority isn’t making any warranty with regard to the soil, rather Pulte will own due diligence with the soil. Commissioner Mulrooney asked when the construction timeline would be secured. Mr. Padget replied that Pulte is their financing bank, so they don’t have to seek financing. During the feasibility process a package is presented to corporate for their approval. This will be when we will get a preliminary plat so there will be no delays. Chairperson Gabel asked if in-floor heating was an option. Mr. Padget replied yes, and there is no concern from customers about the heat of the floor. They will still have to dig down 4-6 feet so there will be quite a bit of foundation between the ground and the floor. Chairperson Gabel asked if this would be a pet friendly environment. Mr. Padget replied that pets would be allowed but restricted per City ordinance. There is no size restriction. Commissioner Backlund asked if solar electricity was allowed. Housing and Redevelopment Authority Meeting of February 1, 2018 5 Mr. Padget replied that it is not restricted in the HOA documents but homes that do request solar must go through an architecture review process to make that decision. Mr. Bolin noted in the public improvement section sidewalks are included so that will need to be spelled out in that section. MOTION by Commissioner Eggert to approve the Development Agreement for Locke Pointe Park with the addition of the sidewalks in the public improvement section. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY Informational Items: 1.Housing Programs Update Paul Bolin , HRA Executive Assistant Director, reported that there were no loans in January, one remodel advisor visit and three home energy squad visits. The Home and Garden show was this past Saturday, so we should see results from that show. Adjournment: MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Mulrooney. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:37 P.M. Respectfully submitted, Krista Peterson Recording Secretary