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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. th 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 PAGE 4 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 Page 6 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 Page 7 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, th 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 Page 8 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 Page 9 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