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HRA 02/04/2010 - 29807CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION FEBRUARY 4, 2010 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:30 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Pat Gabel Larry Commers Stephen Eggert John Meyer NONMEMBERS PRESENT: Scott Hickok, Community Development Director Richard Pribyl, Finance Director William Burns, City Manager ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of January 7, 2010 Meeting Minutes MOTION by Commissioner Gabel to approve the minutes as presented. Seconded by Commissioner Holm. Commissioner Gabel asked for correction on page four, the last sentence, change compatible to competitive. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED AS AMENDED. 3. Approval of Fina12010 Budget Richard Pribyl, Finance Director, said that at the January 7, 2010 meeting staff provided highlights of the 2009 financial activity and an overview of the proposed 2010 budget. Since that meeting there is just one minor change to the draft. The Housing Demonstration Capital Outlay changed to $130,000 and the Center City TIF Fund had been adjusted to actual. Staff recommends a motion approving the 2010 HRA Budget. Chairperson Commers asked if by increasing the amount up to $130,000 there should be an increase for CEE. Mr. Pribyl said that there is an increase under home contractors for home remodel demo. Chairperson Commers asked if funds could be transferred from the housing replacement fund. Mr. Pribyl answered yes. Chairperson Commers asked if the property on old central was in a district anymore. Mr. Pribyl answered no. Approve subject to clarification — pat/William MOTION by Commissioner Gabel to approve the fina12010 budget. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. CEE Loan Program Administration Contract Extension Scott Hickok, Community Development Director, said that HRA has contracted with the Center for Energy and Environment (CEE) for loan program administration since 1996. The Program Administration includes: marketing the program, processing loan applications, determining eligibility, and customizing loans to individual needs. CEE also provides residents with technical assistance on topics such as remodeling, energy conservation, and indoor air quality. The CEE-HRA partnership allows residents to access other loan dollars (MHFA & Met Council) and there have been no changes to the fee structure. Staff and residents have been pleased with CEE. Staff recommends that the HRA approve the contract e�tension thru December 31, 2010. Commissioner Gabel asked about the inspection process and under what circumstances would both inspectors show up. Mr. Hickok said that if the building inspector is out there for an inspection they will check out other items. The home owner has already paid for a permit and wouldn't be charged if an inspector was sent out. Commissioner Gabel asked about the remodeling visits and if there is a charge for that. Mr. Hickok said no, that is one of those things HRA does and it is a quality experience for home owners. It is a free service and homeowners can call to have someone come out and give remodeling advice. Commissioner Meyer commented that the rates are very competitive. Mr. Hickok said that is correct. MOTION by Commissioner Holm to approve the CEE Loan Program Administration Contract E�tension. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1. Home Improvement Demonstration Project Update Scott Hickok, Community Development Director, said this program will bring to life some of the upgrades showcased in remodeling handbooks. It will showcase upgrades/improvements to make older homes more livable, demonstrate home energy efficiency, encourage reinvestment in single family housing stock, promote our loan program and promote remodeling advisor services. Mr. Hickok said that HRA is set to close on the Demonstration House on February 5, 2010. The home is located at 831 Mississippi Street NE, has three bedrooms, two baths, and a finished basement. There is approximately 1,028 square feet. The property was built in 1959 and the average list price for comparables is $179,959. The average sales price for recent comparable homes is $156,333 and the average list price for zip code 55432 is $176,882. The home at 871 Mississippi listed for $194,900 and HRA acquired property for $128,573.29. Mr. Hickok said that a Remodeling Contractor will be selected through a formal process. Contractors will provide their qualifications, ideas and costs. HRA will select a Contractor at the March meeting. A real estate broker will be selected after soliciting statements of qualifications/interest from area realtors and a pre-remodel open house and kick-off event will be held in Mid March. As the remodeling work moves forward, open houses will happen after key upgrades are completed and other open houses will be held after completion and the home is listed for sale. After the sale, staff and HRA will evaluate the market and determine if another home should be purchased and remodeled. Commissioner Gabel asked if there was enough room for a double garage. Mr. Hickok answered no, the garage could be taken off and another garage could be built behind but we think the budget will be better spent inside the home rather than on a double detached garage. It is perfectly located for the bus and a single car garage points to emphasis for other transportation opportunities. Many homes in the area have single garages and if the home quality and finish is good it won't be severely harmed by a single garage. The market is based on single garages and that did not hamper the price. Commissioner Meyers asked what staff saw as the major entity to emphasize on remodeling. Mr. Hickok said that they are looking at opening up the main living area of the home. Typically in this generation of houses small kitchens are featured and the kitchen/dining could be opened up to feel like one large space and remove the wall. This generation also works well with a great room, kitchen and dining area. This home has a bay window but limits the ability to enjoy an expanded space outdoor and makes the dining room feel smaller. A french door may be installed to enjoy a patio or porch. The bathrooms are in nice shape, ceramic but the colors need to be updated. The home in general is very solid and there is no indication of moisture damage which will save funds. Commissioner Meyer asked about the furnace, electrical, heating, insulation, and other practical things. Mr. Hickok said that this home has a new furnace and modern upgrades to those amenities. An energy efficient furnace was installed and is one that duct upgrades were also made. The building official was very impressed with what was done when they took out the old and put in the new. Chairperson Commers asked if CEE will look at the home. Mr. Hickok said that CEE hasn't been in the home yet but will ask them for some remodeling advice and other energy and conservation features. Commissioner Meyers said that it is interesting how staff will proceed with selecting a broker; to select the contractor first and then the broker. He asked if it would be more profitable to select the broker first for advice on what to do first as far as remodeling goes. Mr. Hickok said that they do plan to bring in the realtor at the same stage because then they see it and are able to speak knowledgably about the before and after which will be a marketable selling point. Dr. Burns said that many times upgrades are a matter of personal taste. He asked what kind of parameters will be used to make decisions on the personal taste items. He also asked if the fireplace would be converted from wood to natural gas and if the home would have wind turbines or solar panels. Mr. Hickok said that staff is not ruling anything out at this time. There may be some solar that could be built into this home. The front door would be another nice opportunity for daylight and solar and it has a solid panel front door right now. There will be an opportunity to bring in natural day light and warm up the interior surfaces with the south face of the home. Commissioner Meyers asked if new windows would be installed. Mr. Hickok said that all of the windows have been replaced in the home and the e�terior was resided in the late 90's. 2. Housing Loan Program Update Scott Hickok, Community Development Director, said that in January one "other" loan was closed making it a total of one year to date. There have been no remodeling advisor visits yet this year. NONAGENDA UPDATE: MOTION by Commissioner Holm to add the Gateway Northeast Property Acquisition to the agenda. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED Scott Hickok, Community Development Director, said that the HRA entered into property purchase negotiations with Mr. Kim, owner of the Tae Kwan Do gym in early 2007. Past negotiations failed to result in a signed purchase agreement. In early January, Mr. Kim stated that he had a real interest in moving forward with a sale to the HRA. Staff worked with Dan Wilson to negotiate a potential sale, earlier today Mr. Kim signed agreement. Staff recommends the HRA approve the purchase agreement in the amount of $375,000. ($320K for bldg/land, $SOK for business reestablishment, and $SK in moving expenses.) MOTION by Commissioner Meyers to approve the Gateway Northeast Property Acquisition. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED ADJOURNMENTS: MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:45 P.M. Respectfully Submitted, Krista Monsrud, Recording Secretary