HomeMy WebLinkAboutMay 2011min
HOUSING & REDEVELOPMENT AUTHORITY
MINUTES OF THE SPECIAL MEETING
OF May 24, 2011
Call to order –
1.The meeting was called to order by Chair Diehm at 7:00 pm
Oath of Office-
2.Irene Sufka could not be sworn in as shewas not present at this meeting.
Roll Call
3. – Members present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Tammera
Diehm, and Bobby Williams.
Staff Present: Executive Director-Walt Fehst, Community Development Director-Scott Clark,
Assistant Community Development Director -Sheila Cartney, and Secretary-Shelley Hanson
Parkview/CommonBond staff: Laura Sheak, Jennifer Eels, Laura Frost, and Lisa Wilcox-
Erhart.
4.Pledge of Allegiance - Recited
CONSENT AGENDA
5.Approve Minutes from January 25, 2011(regular and special meeting) and the special
meeting of April 7, 2011.
6.Approve Financial Report and Payment of Bills for January, February, March and April
2011 on Resolution 2011-03.
Questions from members:
There were no questions.
Motion by Williams, seconded by Nawrocki, to approve the consent agenda items as listed and
to adopt Resolution 2011-03, Resolution of the Columbia Heights Housing and Redevelopment
Authority (HRA) approving the Financial Statement and Payment of Bills for the months of
January, February, March, and April 2011. All Ayes. MOTION PASSED.
HRA RESOLUTION 2011-03
RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY
(HRA) APPROVING THE FINANCIAL STATEMENT FOR JANUARY, FEBRUARY, MARCH AND
APRIL, 2011 AND PAYMENT OF BILLS FOR THE MONTHS OF JANUARY, FEBRUARY, MARCH,
AND APRIL 2011.
WHEREAS,
the Columbia Heights Housing and Redevelopment Authority (HRA) is required by Minnesota
Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and
disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the
HRA's credits and assets and its outstanding liabilities; and
WHEREAS,
said Statute also requires the HRA to examine the statement and treasurer's vouchers or bills and if
correct, to approve them by resolution and enter the resolution in its records; and
HRA Minutes
Page 2
May 24, 2011
WHEREAS,
the financial statement for the months of January, February, March, and April of 2011 and the list
of bills for the months January, February, March, and April 2011 are attached hereto and made a part of this
resolution; and
WHEREAS,
the HRA has examined the financial statement and the list of bills and finds them to be acceptable
as to both form and accuracy.
NOW, THEREFORE BE IT RESOLVED
by the Board of Commissioners of the Columbia Heights Housing
& Redevelopment Authority that it has examined the attached financial statements and list of bills, which are
attached hereto and made a part hereof, and they are found to be correct, as to form and content; and
BE IT FURTHER RESOLVED
the financial statements are acknowledged and received and the list of bills as
presented in writing are approved for payment out of proper funds; and
BE IT FURTHER RESOLVED
this resolution and attachments are to be made a part of the permanent records
of the Columbia Heights Housing & Redevelopment Authority.
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Passed this 24 day of May, 2011.
BUSINESS ITEMS
7.Report of the Management Company
Laura asked if there were any questions on the newsletter items or on the maintenance reports.
Nawrocki asked what the status was for hiring an architect for the second floor remodeling. Lisa
explained that CommonBond went to BWBR who has done the previous floors to see if they would
adjust their price. They came back with the same fee as last year. So CommonBond put it out for bids
which resulted in four companies bidding on the project. Two came in higher and one came in
approximately $3,500 lower than BWBR. The contract has not been awarded yet since Lisa wanted to
discuss this with the HRA Commission members. The low bidder was WAI Continuum. Staff has
been reviewing the bids and she will do a “HUD scan” on the company also before proceeding to
award the bid. She stated they have found BWBR very good to work with, but wanted feedback from
the Board on whether they wanted to award the second floor to the low bidding company.
Nawrocki stated if they are qualified, then the decision should be to go with the low bidder. Peterson
said he felt comfortable going with the low bidder also since the scope of the project is basic updating
that has already been defined.
Schmitt asked if the HUD scan does show anything detrimental about the new company if we could
just go back to BWBR without re-bidding. Lisa said yes, they would go back to BWBR and that the
amount of this project for the architectural services is within CommonBond’s limit for entering into a
contract.
HRA Minutes
Page 3
May 24, 2011
Nawrocki then asked about the number of police calls recorded for April. He said the report indicated
an increase that month. Laura stated that two of the calls were welfare checks on residents and a report
was made on property damage, but the details of that are unknown. She also noted that police calls
generally increase in the warmer months once residents have their windows open and call about noise
coming from the Star Bar’s bands.
Resident Council Minutes
8.
Rita Nelson reviewed the minutes from the Resident Council Meeting with HRA members. She also
introduced the other officers of the current Resident Council and said things around the building
seemed to have settled into place.
9. Citizen Forum
Vernie Harper-Unit #408- asked if the building was for sale. Diehm explained that the City opened a
dialogue with various companies to establish what interest there is for the possible sale of the
buildings. She said they will be entering into a Memo of Understanding later in the meeting with Aeon
to further explore this possibility. Diehm told residents that this is a complicated process due to many
HUD requirements and the HRA wants to ensure the transition is as smooth as possible for the tenants.
Perry Miller-Unit #803-asked what the ramifications are for residents if the building is sold. Diehm
said the Board set goals in the Memo of Understanding to limit the impact on residents. She reviewed
them with the residents. She stated this a priority for the City and that the company they have chosen
to partner with is in agreement with this goal.
Lyn Miner-Unit #202-Residents are concerned that they be kept informed as the process moves
forward. They don’t want to receive move out notices without prior warning. Diehm assured her that
would not happen. She said this will be openly discussed at the meetings and that residents will be
kept up to date. She encouraged residents to call staff or Board members with any questions or
concerns. She reminded residents that rumors get started, and often times they are false, and she
doesn’t want any residents to get upset or panic about the process the City is exploring.
Clark introduced Winifred Smith and James Lehnhoff, representatives from Aeon, and explained they
will be present at future meetings and also strive for a smooth transition if the ownership changes. He
said it may take up to two years for this to be complete, but communication with the residents is a
priority.
Diane Powell-Unit #905-told members she had served on the entertainment committee for the building
and had arranged for several outings that never happened because she couldn’t get 90% vote to
approve. She said it is because many residents don’t come to the meetings and don’t want to get
involved, but that limits the entertainment options for those who do want planned activities. She asked
for suggestions on how to change this.
HRA MINUTES
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MAY 24, 2011
Nawrocki responded that is a Resident Council issue and that they may have to change the by-laws to
possibly adjust the percent needed for approval or change the language to reflect that a majority of
those present would decide. Diehm encouraged people to participate in activities in the building and
also through the City’s Senior Center.
Barb Camp-Unit #608-believes CommonBond has been very good managers and their staff is
wonderful. She would like to see them kept on.
Lois Pap-Unit #323-asked who the residents make the rent checks out to. Diehm said nothing has
changed, and they continue to make them out to the City of Columbia Heights.
Ken Bloch-Unit #315-He said there will probably be more calls about the noise from the Star Bar now
that it is warmer out. Clark said he will be in contact with the Police Chief and if this becomes a
constant problem, staff will contact the owner since there is a mitigation plan in place with him.
10. Procurement Policy, Resolution 2011-04
HUD has brought to our attention that “PHAs are required to establish and follow a written
procurement policy that is consistent with 24 CFR 85.36” And furthermore, “The policy need not
contain detailed working-level procedures, but should require establishment of such procedures to
carry out the policy.” HUD provided a sample procurement policy and sample supplemental forms
that will ensure that the policies in the HRA procurement policy are followed in a consistent manner.
Management staff has made the revisions to the HUD sample form that will be submitted to HUD for
approval after a board resolution is passed. This is formalizing the procedures currently being followed
as required by HUD.
A copy of the proposed procurement policy and the supplemental forms were provided to members.
Clark said the HRA attorney had reviewed the plan and found no issues with it.
Questions from members:
Schmitt asked about page 5-evaluation-she wanted to know who the evaluation committee was. Lisa
said that refers to the management staff who make the initial evaluations of situations. She then asked
about page 6-justification-who is responsible Contracting Officer? Lisa said that she would be the point
of contact, but that Mr. Fehst would be the final signatory on any documents.
Nawrocki commented on page 3-Adminstration Costs-he said he hopes there would be a savings in this
category.
Lisa told members that HUD had provided a sample policy and once this one was prepared, they
reviewed it and suggested it be approved. This will fulfill the obligation as required. She further
explained that the guidelines that we currently have in place will continue. This document is only a
supplement to our present policies.
HRA Minutes
Page 5
May 24, 2011
Motion by Peterson, seconded by Williams, to move to waive the reading of Resolution 2011-04, there
being ample copies available to the public. All ayes. MOTION PASSED.
Motion by Peterson, seconded by Williams, to move to approve Resolution 2011-04, being a Resolution
of the Columbia Heights Housing and Redevelopment Authority approving the HRA Procurement Policy
dated May 24, 2011.
HRA RESOLUTION 2011-04
RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT
AUTHORITY APPROVING THE PROCUREMENT POLICY
Whereas
, the City of Columbia Heights Housing and Redevelopment secures goods and services as part of its
operation as a Public Housing Agency; and
Whereas
, the Department of Housing and Urban Development (HUD) , who provides operational subsidy to
Parkview Villa North, seeks to memorialize a procurement policy per their established guidelines; and
Whereas
, past operations at Parkview Villa North have been consistent with these guidelines; and
Whereas
, in order to satisfy HUD’s regulatory and policy requirements.
Now Therefore Be It Resolved,
The Columbia Heights Housing and Redevelopment Authority adopts a
Procurement Policy dated May 24, 2011 and authorizes its submittal to the Department of Housing and Urban
Development.
Passed this 24th day of May, 2011.
Motion by: Peterson
Seconded by: Williams
Ayes: All ayes
______________________
Chair
_________________________
Secretary
11. Memorandum of Understanding between Aeon and City of Columbia Heights
In 2010, the Housing and Redevelopment Authority gave staff direction to determine if there was
private market interest for the purchase of Parkview Villa North and South. Interest was very limited
since the dissolution of the PHA status to Parkview Villa North is controlled by the Department of
Housing and Urban Development, meaning a third party could negate an otherwise successful
negotiation. In the end, two parties elected to answer a Request for Proposal that clearly spelled out the
uncertainty of this transaction.
HRA Minutes
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May 24, 2011
On April 7, 2011 the HRA conducted interviews with the two firms that submitted a RFQ proposal,
Aeon and CommonBond. After the interviews, there was unanimous consensus to partner with Aeon
based on a number of considerations. The next step in this process is to mutually agree to a
Memorandum of Understanding (MOU) that is attached for review and action by the Board. The MOU
outlines the desired outcomes, establishes that each party is reasonable for their own costs, each party
may terminate the process without cause and that there is no recourse for termination actions.
Clark read the goals set by the Board that are included in the MOU as follows:
1. Maintaining the property as a strong vibrant senior community,
2. Protecting the existing rental price point for a particular period of time,
3. A long term convenant of maintaining the property as senior,
4. Need for the sale to be at a market price,
5. Maintaining a Columbia Heights residency priority
Clark also assured those present that CommonBond will be retained as managers of this site and things
will stay just as they are during this process. He recognized the fantastic job they have done since
taking over as managers.
If approved by the Board, the next step will be HRA staff and Aeon developing a master plan in terms
of all of the necessary steps, processes, etc. necessary to complete this transaction.
As part of this action, there is a second motion to appropriate $7,500 from the Parkview Villa South
fund balance for the use of expert and professional services as commissioned by the HRA for the
subject negotiations. As usual, all individual expenditures from this appropriation will be acted on as
part of the monthly financial review.
Staff is recommending approval of the Memorandum of Understanding as written.
Questions from members:
Nawrocki asked if the numbers discussed during the Executive Session were still confidential? Diehm
stated they were. Nawrocki then went on to say he didn’t want this to turn into a “make work” situation
for staff. He doesn’t believe this process will take two years or more to complete. He’s concerned that
the longer it goes on the harder it will be to get a fair value for the building. He addressed several issues
such as the EMV of the building, the fund balances on the buildings, and the affect it will have on
tenants to drag it out too long.
Williams said he was satisfied with the terms of the Memo of Understanding and this is the first step in
the process.
Schmitt said not to put too much weight on the Estimated Market Value. It is only a figure. In reality,
the building is only worth what someone is willing to pay for it.
HRA Minutes
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May 24, 2011
Peterson said we need to go to first base before we can go to second. This Memo of Understanding is
necessary to gather information so decisions can be made for the sake of both parties. This doesn’t lock
either party into anything at this point. This is a step process, and we need to take the first step to see if
it can be accomplished or not.
Diehm agreed with Peterson. If it’s a profit we’re looking at, we could raise rents and make it a more
lucrative deal, but the Board has already decided to protect the residents and maintain the rent structure
as much as possible.
Williams said that as stated in the Memo of Understanding, each party is responsible for their own costs,
and that the Agreement can be terminated at any time by either party if it is deemed to be a non-
workable deal. Therefore, there is no reason not to move forward with this agreement.
Motion by Williams, seconded by Schmitt, to approve the Memorandum of Understanding between Aeon
and the City of Columbia Heights Housing and Redevelopment Authority dated May 24, 2011. All ayes.
MOTION PASSED.
Motion by Peterson, seconded by Schmitt, to approve an appropriation of $7,500 from the Parkview Villa
South fund balance (Fund 213) to be used for expert and professional services as part of the Aeon
negotiations. All ayes. MOTION PASSED.
MEMORANDUM OF UNDERSTANDING
BETWEEN AEON AND THE CITY OF COLUMBIA HEIGHTS
HOUSING AND REDEVLOPMENT AUTHORITY
THIS MEMORANDUM OF UNDERSTANDING is made by and between AEON and the CITY OF
COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (“HRA”) to outline the parties’
understanding concerning their joint efforts to establish a process for the anticipated sale of two multi-unit
residential housing facilities within the City of Columbia Heights subject to the express goals of the HRA.
RECITALS
WHEREAS, the HRA owns and oversees operations of Parkview Villa South and Parkview Villa North,
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which are attached multi-unit residential housing facilities located at 965 40 Avenue NE in Columbia Heights,
Minnesota (collectively “the Subject Properties”) ; and
WHEREAS, Parkview Villa South is a senior 45-unit residential facility with a current minimum age
requirement of 55; and
WHEREAS, Parkview Villa North is a 9 story, 101-unit residential Public Housing Agency (“PHA”)
facility; and
WHEREAS, the HRA issued a Request for Qualifications and Interest (“RFQ”) seeking established
housing development entities, for profit or non-profit, that have the ability to perform the following as part of
the sale of the Subject Properties: (1) technical expertise to partner with the HRA in a submittal to the
Department of Housing and Urban Development’s (“HUD”) Special Application Center for the dissolution of
Parkview Villa North’s PHA status; (2) demonstration of ability to obtain new financing for both facilities; and
(3) meet and maintain the established goals of the HRA for the Subject Properties; and
HRA Minutes
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May 24, 2011
WHEREAS, the RFQ specifically identified the following goals of the HRA in connection with the sale
of the Subject Properties:
a) Maintaining the property as a strong vibrant senior community,
b) Protecting the existing rental price point for a particular period of time
c) A long term covenant of maintaining the property as senior
d) Need for the sale to be at a market price
e) Maintaining a Columbia Heights residency priority; and
WHEREAS, the RFQ specifically advised applicants for consideration that the HRA retained the right
to terminate the process until the signing of a purchase agreement, with no recourse against the HRA for time
and/or materials expended in responding to the RFQ; and
WHEREAS, on or about March 18, 2011, Aeon submitted a Statement of Qualification for the purchase
of Parkview Villa South and North in response to the RFQ issued by the HRA; and
WHEREAS, after due consideration of all the applicants in response to the RFQ, the HRA identified
Aeon as a qualified party of interest for purchasing the Subject Properties subject to parties establishing a
process for the sale of the Subject Properties consistent with the expressed goals of the HRA in the RFQ; and
WHEREAS, the parties wish to enter into a Memorandum of Understanding which outlines the goals
and expectation of each of the parties during the process leading up to the execution of a purchase agreement for
the sale of the Subject Properties by the HRA.
NOW THEREFORE, parties agree and understand the following:
1. Subject to the termination provisions of paragraph 5, the parties will cooperate and exercise
reasonable efforts in establishing a process and entering into a purchase agreement and any other related
documents for the sale of the Subject Properties to Aeon, or an entity managed by Aeon, pursuant to the
expressed goals of the HRA in the RFQ. In particular, Aeon will provide technical expertise to the HRA in
connection with the submission for the dissolution of Parkview Villa North’s PHA status through HUD’s
Special Application Center.
2. The parties will identify and pursue alternative means of financing for purposes of completing
the sale of the Subject Properties pursuant to the HRA’s expressed goals.
3. The HRA reserves the right to clarify, modify and/or add to its expressed goals and objectives
to be achieved by the sale of the Subject Properties. Modifications and/or additions to the HRA’s expressed
goals resulting from the sale of the Subject Properties shall be communicated to Aeon in writing as soon as
practicable.
4. Unless otherwise agreed in writing, each party to this Memorandum of Understanding shall be
responsible for their own costs, time and materials expended in pursuing the parties’ mutual interest in
establishing a process for the eventual sale of the Subject Properties.
5. Upon written notice to the other party, either Aeon or the HRA may terminate this
Memorandum of Understanding and cease all its efforts to establish and pursue a process for the eventual sale of
the Subject Properties. Upon the termination of this Memorandum of Understanding, neither party will be
entitled to receive or permitted to seek compensation from the other party for any time, materials or moneys
expended in connection with their efforts for establishing and pursuing a process for the sale of the Subject
Properties.
HRA MINUTES
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May 24, 2011
6. Aeon agrees to immediately report to the HRA any requests from third parties for information
relating to this Memorandum of Understanding, or services provided hereunder. The HRA agrees to promptly
respond to inquiries from Aeon concerning data requests.
7. Any notice authorized or required under this Memorandum of Understanding shall be in writing
and shall be sent by certified mail to the other party as follows:
To Aeon: To the HRA:
Aeon City of Columbia Heights
Attn: Alan Arthur Attn: Scott Clark
rdth
822 3 Street, Suite 300 590 40 Avenue NE
Minneapolis, MN 55415 Columbia Heights, MN 55428
8. This Memorandum of Understanding may be modified by mutual agreement of the parties in
writing.
AEON
By:__________________________
Alan Arthur
Its: President
Dated:_______________________
CITY OF COLUMBIA HEIGHTS
HOUSING AND REDEVELOPMENT AUTHORITY
By:__________________________
Walt Fehst
Its: Executive Director
Dated:_______________________
Other Business
12.
The next regular HRA meeting is scheduled for July 26, 2011 at Parkview Villa.
The meeting adjourned at 7:58 pm.
Respectfully Submitted,
Shelley Hanson
Recording Secretary