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HRA 12/02/2010 - 29815CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION DECEMBER 2, 2010 CALL TO ORDER: Vice Chairperson Gabel called the HRA Meeting to order at 7:15 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Pat Gabel Stephen Eggert John Meyer MEMBERS ABSENT: Larry Commers NONMEMBERS PRESENT: Paul Bolin, HRA Assistant Executive Director Jim Casserly, Development Consultant Darin Nelson, Finance Director, Treasurer Becky Kiernan, Accountant ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of November 4, 2010 Meeting Minutes MOTION by Commissioner Eggert to approve the minutes as presented. Seconded by Commissioner Meyer. Commissioner Gabel noted changes on page 5. UPON VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON GABEL DECLARED THE MINUTES APPROVED AS AMENDED AND THE MOTION CARRIED UNANIMOUSLY 3. Approval of Scattered Site Phase V TIF District Paul Bolin, HRA Assistant Executive Director, said that Special Legislation reauthorized the Housing Replacement Program allowing the HRA to purchase up to 78 more properties. The properties are to be demolished or rehabbed and placed into a multi-phased scattered site TI District. Properties can be constructed or improved up to 150% of the average home value. The restated Housing Plan will streamline addition of future phases (addition of homes) to the program. Future phases can be added by HRA Resolution, provided the parcels meet required criteria. Mr. Bolin said that City Council will hold a public hearing and take action on this item at their December 13th meeting. Staff recommends approval of the resolution amending and restating the Housing Replacement Program for Phases I— IV; and; adopting Phase V. Commissioner Gabel asked if the exhibits were projections as they don't have concrete figures. Jim Casserly, Development Consultant, answered that is correct. The numbers reflect what would happen if all parcels were included. The two parcels, currently in the works, have a total budget of around $75-80,000 for both. Those costs are actually incorporated into the larger budget. Commissioner Holm asked if there was a date in terms of when these parcels can be added and if some parcels expire from the district if others can be added in place of it. Mr. Casserly said that is how the document is drafted. The interpretation is that there cannot be more than 100 parcels at one time. Commissioner Holm asked what constitutes a house; a four-plex, apartment building, town home etc. Mr. Casserly said that the statute states that for the parcel to be eligible for inclusion it has to be a vacant site that contains a vacant house or the house that is located on the parcel is structurally substandard. If there is more than one unit on that site that would be okay as long as it meets the criteria for market rate housing. The market value for 2011 would not exceed $262,000. Commissioner Gabel asked if it could be an apartment building. Mr. Casserly answered no; the parcel has to be owner occupied housing. Commissioner Holm asked if it could be a town home. Mr. Casserly answered yes. Commissioner Eggert asked about vacant land and if it had to be zoned residential; and if something was rezoned or changed to residential if it would be eligible. Mr. Casserly answered yes. Commissioner Holm said that this is a good program and will help with issues regarding substandard housing and foreclosures. Mr. Bolin said he would come back in January with parcels to include in phase six. If approved by the City Council, future parcels can be added through a resolution. The homes that are currently in the remodel program can also be included in this program because the homes are vacant. MOTION by Commissioner Holm to approve the scattered site phase V TIF District. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY INFORMATIONAL ITEMS: 1. Home Remodeling Demonstration Program Paul Bolin, HRA Executive Assistant Director, said that the home on 4757 2"d Street was closed on this week This home is a rambler and will feature one level living remodel ideas which will be great for Fridley residents who want to stay in their homes longer. There was an article today in the Star Tribune talking about the ne�t generation 65+, and that their desires and wants are different than those who turned 65 twenty years ago. Staff will be working with Lennox Builders to come up with ideas for the remodel. On January Sth staff and Lennox Builders will meet with seniors and will have a focus group to talk about remodel ideas. Mr. Bolin reviewed the Open House Schedule: Pre-remodel open house: January 9tn Mid-remodel open house: February 26 & 27 Finished open houses: Starting March 27tn Mr. Bolin said that the house in Mississippi Street had one showing a week ago. A lot of positive comments have been heard about the home but there are just no buyers out there right now. No one has commented that the price is too high but after the holidays we will look at the market to see if it should be lowered. Staff continues to look for a two story or split level home but nothing has come up on the market at this time. Commissioner Meyers asked about the photos of the home and if the steps could be eliminated making the front of the home handicap accessible. Mr. Bolin said that the back of the home has a perfect level grade from the garage up to the back door. Commissioner Eggert asked if there was access to the house from the garage through the sliding glass door and if the sliding glass door could be locked from the outside. Mr. Bolin said that the door can be locked from the outside. Commissioner Gabel asked why they did not choose to create two bedrooms and larger bath. Mr. Bolin said the plan is not set in stone; they will get comments from the seniors and the realtor on where the most beneficial changes to the floor plan would be. 2. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that in November two RLF and one other Loans were closed which brings the total to 191oans year to date. There was one Remodeling Advisor Visit for a total of 16 year to date. NONAGENDA ITEMS: Faulkner Development Relocating the sewer line took some time, but once the sewer line work was completed, construction started immediately. Mr. Faulkner will not make the January lst opening but should be ready to open in April. GWNE The Tae Kwan Do property was closed on Tuesday, November 30. Mr. Kim can rent back from the HRA until the end of February, but hopes to be out in mid January. The ne�t step is to demolish this building, Sikh Society and Select Products building in late February or early March. The plan is to go out for bids for demolition and bring estimates back to the February meeting. ADJOURNMENT: MOTION by Commissioner Holm to adjourn. Seconded by Commissioner Eggert. UPON VOICE VOTE, ALL VOTING AYE, VICE CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:05 P.M. Respectfully Submitted, Krista Monsrud, Recording Secretary