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09-20 HRA Regular HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting September 20, 2021 CALL TO ORDER The meeting was called to order by Chair Supple at 7:00 p.m. in the Council Chambers. HRA Members Present: Mary Supple, Chair; Maria Regan Gonzalez; Sue Sandahl; Lee Ohnesorge and Erin Vrieze Daniels HRA Members Absent: None Staff Present: John Stark, Community Development Director/Executive Director; Julie Urban, Housing Manager; and LaTonia DuBois, Administrative Assistant. Others Present: Mike Burnett; Cedar Point Investments, LLC; Adam Seraphine, Cedar Point Investments, LLC; NCF representative; Tim Pabst, Metro Campus 1; Kevin Larson, homeowner 6331 Blaisdell Avenue South. OPEN FORUM No callers. APPROVAL OF THE MINUTES M/Regan Gonzalez, S/Sandahl to approve the minutes of the regular Housing and Redevelopment meeting of August 16, 2021; and the joint City Council and Housing and Redevelopment Authority meeting/tour on September 7, 2021. Motion carried 5-0 Item #1 APPROVAL OF THE AGENDA M/Regan Gonzalez, S/Sandahl to approve the agenda. Motion carried 5-0 HRA Meeting Minutes -2- September 20, 2021 Item #2 CONSENT CALENDAR Executive Director Stark presented the Consent Calendar: A. Consider an adjustment to the payment standard for the Section 8 Housing Choice Voucher Program. (Staff Report No. 28) B. Consider the adoption of a resolution approving amended and restated documents related to the Chamberlain Project. (Staff Report No. 29) HRA RESOLUTION NO. 1406 RESOLUTION APPROVING AMENDED AND RESTATED DOCUMENTS IN CONNECTION WITH THE CHAMBERLAIN APARTMENTS PROJECT M/Vrieze Daniels, S/Sandahl to approve the Consent Calendar. Motion Carried 5-0 Item #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT CALENDAR None Item #4 CONSIDER A RESOLUTION SUPPORTING AN INFRASTRUCTURE GRANT APPLICATION TO MINNESOTA HOUSING FOR WOODLAWN TERRACE. (S.R. NO. 30) Housing Manager Urban presented Staff Report No. 30. Commissioner Vrieze Daniels expressed excitement for the development of the park. Commissioner Regan Gonzalez spoke of the sense of community in the Park and thanked the Cooperative leaders and community members, Northcountry Cooperative Foundation and Minnesota Housing. Chair Supple spoke of the use of the pooled TIF for this project meeting the spirit of what the HRA is trying to accomplish by preserving affordable housing. HRA Meeting Minutes -3- September 20, 2021 M/Regan Gonzalez,S/Vrieze Danielsto adopt the attached resolution approving support for an infrastructure grant application to Minnesota Housing by the Woodlawn Terrace Cooperative in support of utility improvements at Woodlawn Terrace. Motion carried 5-0 HRA RESOLUTION NO. 1407 RESOLUTION APPROVING SUPPORTING INFRASTRUCTURE GRANT APPLICATION FOR WOODLAWN TERRACE MOBILE HOME PARK CONSIDER A PRELIMINARY DONATION AGREEMENT WITH METRO CAMPUS 1, LLC TO EXPLORE THE DONATION OF THE OFFICE BUILDING AND Item #5 PROPERTY AT 1600 78TH STREET EAST TO THE HOUSING AND REDEVELOPMENT AUTHORITY. (S.R. NO. 31) Executive Director Stark presented Staff Report No. 31 Commissioner Vrieze Daniels inquired about what types of uses the property may be used for. Executive Director Stark explained potential opportunities to explore and the next steps that would occur. Commissioner Regan Gonzalez inquired about the Metro Sales property. the property to Metro Sales. Commissioner Regan Gonzalez expressed appreciation for the donation and the potential for the area. Commissioner Sandahl asked for clarification about the Metro Sales location and the property to be donated. Executive Director Stark explained building locations and previous construction delays on the property being considered for donation. Chair Supple inquired about demolishing and the TIF rules. Executive Director explained the time constraints that go along with TIF rules and demolishing the property. Commissioner Vrieze Daniels inquired about a billboard on the property. Executive Director Stark explained the requirements and the preferences of the future positions of the billboard. M/Sandahl, S/Regan Gonzalez to approve the attached Preliminary Donation Agreement with Metro Campus 1, LLC to explore the acceptance of property at 1600 78th Street East. HRA Meeting Minutes -4- September 20, 2021 Motion carried 5-0 HRA RESOLUTION NO. 1408 RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF A PRELIMINARY DONATION AGREEMENT WITH METRO CAMPUS 1 LLC CONSIDERATION OF PROPOSED CHANGES TO THE CONTRACT FOR PRIVATE DEVELOPMENT WITH CEDAR POINT INVESTMENTS, LLC, Item #6 EXTENDING THE CONTRACT DEADLINE AND ALLOWING FOR THE SALE OF MARKET-RATE TOWNHOMES. (S.R. NO 32) Housing Manager Urban presented Staff Report No. 32 Commissioner Regan Gonzalez asked Housing Manager Urban to walk through the financing changes. Housing Manager explained how the expenses would be covered and the different scenarios. Executive Director Stark explained the HRA would not incur any additional costs and that an entire eight unit pod would have to be sold as affordable in order to be put back into the TIF District. Commissioner Vrieze Daniels inquired asked for clarification regarding the initial 32 units. Housing Manager Urban explained the initial 32 units have been sold. Commissioner Vrieze Daniels inquired about how the additional 32 units could be sold at a higher rate than the identical previous units. Mike Burnett, Cedar Point Investments, LLC explained the uncertainties with the outcome, but stated that there are buyers out there. Commissioner Vrieze Daniels inquired about the effect of the additional units being market rate and the shift in balance of market rate and affordability. Housing Manager Urban explained. Housing Manager Urban also explained this item would be brought before the HRA at the next meeting. Commissioner Vrieze Daniels stated she would like to refrain from extending the deadline in order to incentivize bringing the project to completion. A experienced and problems with supply chain, but they are moving sales along as quickly as possible within their control. M/Sandahl, S/Regan Gonzalez to provide feedback for the proposed changes to the RF64 townhome development and direct staff to prepare an amendment to the Contract for Private Development with Cedar Point Investments, LLC. HRA Meeting Minutes -5- September 20, 2021 Motion carried 5-0 CONSIDERATION OF A REQUEST FOR A SUBORDINATION OF A HOUSING Item #7 AND REDEVELOPMENT AUTHORITY TRANSFORMATION PROGRAM LOAN AT 6331 BLAISDELL AVENUE SOUTH. (S.R. NO. 33) Housing Manager Urban presented Staff Report No. 33 Commissioner Regan Gonzalez thanked the applicant and staff for working together to bring this item to the HRA. M/Vrieze Daniels, S/Sandahl to approve the request for a subordination of a Housing and Redevelopment Authority Transformation Program loan at 6331 Blaisdell Avenue South. Motion carried 5-0 Item #9 HRA DISCUSSION ITEMS Chair Supple thanked staff for their work at Penn Fest and encouraged listeners to read an creative solutions to the issue. Item #10 EXECUTIVE DIRECTOR Executive Director Stark provided an 65 development. Executive Director Stark reported the retirement of Chief Building Official, Rick Regnier to the HRA and spoke of the diligent inspections work he completed throughout the years and thanked him for his years of service and dedication. Item #11 CLAIMS M/Sandahl, S/Ohnesorge that the following claims be approved: U.S. BANK 9/20/2021 Section 8 Checks: 133103 - 133191 $ 177,999.10 HRA Checks: 34072 - 34084 $ 91,622.36 $ 269,621.46 TOTAL Motion carried 5-0 HRA Meeting Minutes -6- September 20, 2021 Item #12ADJOURNMENT The meeting was adjourned by unanimous consent at 7:55 p.m. Date Approved: October 18, 2021 Mary B. Supple HRAChair LaTonia DuBois John Stark Administrative Assistant Executive Director