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HomeMy WebLinkAboutHRA mtg OCT 2011 HOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE MEETING OF OCTOBER 25, 2011 Call to order – 1.The meeting was called to order by Chair Diehm at 7:00 pm Roll Call 2. – Members present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, and Tammera Diehm. Members Absent: Bobby Williams Staff Present: Executive Director-Walt Fehst, Assistant Community Development Director - Sheila Cartney, and Secretary-Shelley Hanson Parkview/CommonBond staff: Laura Sheak, Laura Frost, Jennifer Ells, and Lisa Wilcox- Erhart. 3.Pledge of Allegiance - Recited CONSENT AGENDA 4.Approve Minutes from July 26, 2011. 5.Approve Financial Report and Payment of Bills for July, August, and September 2011 on Resolution 2011-06. Questions from members: Nawrocki asked what the servicing fees are. Frost explained they are the fees paid to the City for staff time to oversee management of Parkview Villa. Motion by Schmitt, seconded by Peterson, to approve the minutes of July 26, 2011. All ayes. MOTION PASSED. Motion by Nawrocki, seconded by Peterson, to waive the reading of Resolution 2011-06, there being ample copies available. All ayes. MOTION PASSED. Motion by Nawrocki, seconded by Schmitt, to adopt Resolution 2011-06, Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) approving the Financial Statement and Payment of Bills for the months of July, August, and September 2011. All Ayes. MOTION PASSED. HRA RESOLUTION 2011-06 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR JULY, AUGUST, AND SEPTEMBER, 2011 AND PAYMENT OF BILLS FOR THE MONTHS OF JULY, AUGUST, AND SEPTEMBER, 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 Page 2 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 WHEREAS, the financial statement for the months of July, August, and September 2011 and the list of bills for the months July, August, and September, 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 25 day of October, 2011. BUSINESS ITEMS 6.Report of the Management Company Laura Sheak asked if there were any questions on the newsletter items or on the monthly reports. Nawrocki stated that at the last meeting, there had been complaints of windows being left open in the hallways. He asked if any more complaints had been received or if the issue had been resolved. Laura said that she hasn’t received any more complaints and that she has talked to the two parties involved. She also knows it is still happening and if it continues to happen she will have locks installed on the windows so they can’t be opened. Laura said she spoke to the Fire Department about this and they are ok with this resolution. Nawrocki asked if she couldn’t do something more to make the tenants understand they shouldn’t be leaving the windows open, especially now that it’s colder. Laura told him it is not technically a lease violation, so she can’t give them a formal warning. Her only alternative, if it continues, is to install the locks. 7Resident Council Minutes . Rita Nelson reviewed some of the activities the residents have been able to participate in recently. She said they play Bingo regularly, recently had a Pancake Breakfast, have Karoake sessions, had a Star Wars Party, and there will be a Halloween Party next week. She also told members that someone from the University Extension Service is going to come out for a 6 th week program on nutrition and healthy eating starting January 6. The members commended the Resident Council on providing so many activities and worthwhile programs for the residents of Parkview. Page 3 8. Citizen Forum Shirley Benitez, unit #421, is the Vice President of the Resident Council. She asked how residents can contact the HRA Board members if they have concerns, since they don’t currently have a representative on the Board. Diehm encouraged residents to go to the Management Company staff if possible. They will, in turn, bring any concerns to City Staff or the HRA Board, if need be. If it is a matter that residents don’t feel comfortable going to CommonBond staff with, then residents can contact Walt, Scott, or Sheila at City Hall, or any of the other Board members directly. She explained that most of the HRA Board members have other jobs during the day, but numbers where they can be reached are listed in the City Newsletter. Nawrocki said he has a separate phone line for City/HRA business and he encouraged residents to contact him. Adam Aliou, asked how the sale to Aeon is progressing. Diehm said that would be addressed later in the meeting. He is concerned that they will raise the rent if it is no longer a HUD building. 9. CommonBond Contract Extension-Resolution 2011-10 Cartney explained that on January 31, 2012 the contract between the City of Columbia Heights HRA and CommonBond will expire for the management of Parkview Villa. Based on the Annual Contributions Contract (ACC) a two-year contract is allowed, at this time staff is recommending a one year contract extension with CommonBond. The extension would keep the same terms as the previous contract, including immediate termination upon the sale, with the exception of the monthly fee. CommonBond is requesting an increase in the monthly fee (section 9.1). CommonBond has not received an increase in fees for five years and is requesting a 5% increase at this time. The current monthly fee to CommonBond is $18,650 which includes payroll related expenses and the monthly management fee. The increase of 5% would raise the monthly fee to $19,583, an overall increase of $933 a month or $11,196 a year. Staff recommends extending the Management Contract with CommonBond for one year with a 5% increase in the monthly fee. Questions from members: Nawrocki stated he thought a 5% increase was too large. He said the original figure agreed to five years ago by CommonBond, most likely factored in increases for the entire period, so he thought a 5% increase for one year was too much. Peterson said there is no way to know what the original fee included, but thought the increase was justified based on the performance of staff for the management of Parkview Villa. Page 4 Motion by Peterson, seconded by Schmitt, to waive the reading of Resolution 2011-10 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Peterson, seconded by Schmitt, to Adopt Resolution 2011-10, A Resolution extending CommonBond’s Housing Management Contract for one year for Management of Parkview Villa North and South, Ending on January 31, 2013 and an increase to the monthly management fee of 5 percent, increasing the base fee to $19,583.00. Motion by Nawrocki to amend the above motion to approve an increase of 1%, not 5%. Motion dies from lack of a second. Roll Call on the original motion: Nawrocki-nay Schmitt, Peterson, and Diehm-aye. MOTION PASSED. HRA RESOLUTION 2011-10 Extension of CommonBond Housing Management Contract Until January 31, 2013 for Management of Parkview Villa North and South WHEREAS, on January 23, 2008 the City of Columbia Heights’s Housing and Redevelopment Authority (HRA) approved a management agreement with CommonBond Housing (CommonBond) which included a provision for a five-year contract, and WHEREAS, the Department of Housing and Urban Development (HUD) denied the ability of the HRA to enter into a five-year contract based on a previously approved 1969 Annual Contributions Contract which limits all contracts to two years, and WHEREAS, in order to meet the spirit and intent of the originally approved five year contract both HUD and the HRA agreed to a management contract term of an initial two year period with three one- year extensions, and WHEREAS, this language is memorialized in Section 1.3 of the final and approved contract approved by the HRA on April 22, 2008, and WHEREAS, the HRA is satisfied by the performance and competence of CommonBond and desire to extend the subject term, NOW THEREFORE BE IT RESOLVED, 1)The HRA approves a one-year management contract extension period, per Section 1.3 of the April 22, 2008 Management Agreement. Per this Agreement, the management term will end on January 31, 2013. 2)The HRA approves a one-time increase of 5 percent to the monthly management fee, increasing the base fee to $19,583.00 Page 5 3)All other provisions of the contract dated April 22, 2008 Management Agreement between CommonBond and the HRA remains in place. Passed this 25th day of October 2011. MOTION BY: Peterson SECONDED BY: Schmitt _________________________ Chair- Tammera Diehm Attest by: ____________________________ Shelley Hanson, Recording Secretary 10. Approval of Parkview Villa North 2012 Budget-Resolution 2011-07 Laura Frost reviewed the figures for the 2012 Budget for Parkview Villa North (PVVN) with the members. Expenditures The proposed 2012 budget for PVVN is $602,050. The amount includes $92,200 for capital outlays. The budget increased 1%. Administration costs increased by 5% due to salary, contract and other administration costs. Utility costs have been lowered to reflect the historic data. Operating and Maintenance expenses increased a total of 8% from 2011. However, included in this increase is a 5% increase in the elevator contract, cost for new window blinds for all 9 floors, $5,000 for concrete work and parking lot patching and seal coating, $1,000 for new inside benches and other necessary line item increases. Revenues Total proposed revenue is $638,461and includes rents of $341,664, Department of Housing and Urban Development operating subsidy of $190,000, and Department of Housing and Urban Development Capital Funding Program funds of $92,200 and other miscellaneous income of $14,597. Capital Improvement Plan The apartment modernization capital improvement plans previously developed will continue to be implemented. Staff recommends adopting Resolution 2011-07, the 2012 PVV North Budget. Questions from members: Schmitt questioned why there was such an increase for refuse in the South building. She wondered if the split between the two buildings was altered since the figures changed so drastically. Nawrocki stated the cost distribution of the refuse should be proportionate of the number of units per building. Therefore, the bill should be split 69% for the north building, and 31% for the south. However, the numbers don’t reflect that. Management staff will check on those figures again. It was noted that utility costs went down significantly due to the new boiler, new windows and other energy efficient updates that have been done to the building. Page 6 There was a discussion regarding the Capital Improvement Grant money and the expenditures of those funds. Nawrocki wanted more detail on the amounts paid for Architectural and Engineering services, as well as what has stnd been or will be paid to contractors for the renovations of 1 and 2 floor. He told CommonBond staff that he wants those items explained further before this goes to the City Council for final approval. Motion by Peterson, seconded by Schmitt , to waive the reading of Resolution 2011-07, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Peterson , seconded by Schmitt , to adopt Resolution 2011-07, being a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights, adopting the 2012 Parkview Villa North Budget of $602,050 and recommending this to the City Council for approval. All ayes. MOTION PASSED. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS HRA RESOLUTION 2011-07 RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADOPTING THE 2012 BUDGET FOR PARKVIEW VILLA NORTH. BE IT RESOLVED By the Columbia Heights Housing and Redevelopment Authority (HRA) of Columbia Heights, Minnesota as follows: WHEREAS, Parkview Villa North, a 101 units rental apartment building, was constructed in 1975 for the purpose of providing affordable housing to seniors and disabled persons. NOW, THEREFORE BE IT RESOLVED BY THE HRA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The HRA adopts and recommends to the City Council for approval the 2012 Parkview Villa North budget of $602,050.00 The Executive Director is instructed to transmit a copy of this resolution to the City Manager and City Finance Director of the City of Columbia Heights, Minnesota. APPROVED THIS 25th DAY OF October, 2011. Attest by: _______________________________ ______________________________ Walter R. Fehst, Executive Director Tammera Diehm, Chair Page 7 11. Approval of Parkview Villa South 2012 Budget-Resolution 2011-08 th Parkview Villa South (PVVS) is a 45-unit apartment building, located at 965 40 Avenue Northeast. PVVS serves low-income seniors age 55 and older. PVVS was constructed in 1991. PVVS is owned by the Economic Development Authority and managed by CommonBond Housing. Laura Frost and Lisa Wilcox Erhart briefly went through the figures for this building. Expenditures The proposed 2012 budget for PVVS is $279,101. Of this amount, $35,000 is allocated for capital projects. There is an overall budget increase of 9%. This increase is reflected in part by a 5% increase in elevator contract and overall materials costs. Administration expenses increased by 5% due to salary, contract and other administrative costs. Also included in this increase is $1,250 for replacement of the flooring as needed and parking lot patching and seal coating, $1,000 for inside furniture and other necessary line item increases. Revenues Proposed gross revenues are $ 319,915 and include rents of $309,286 other miscellaneous income of $10,629. Staff recommends adopting Resolution 2011-08 the 2012 PVVS Budget. Questions from members: There were no further questions on this portion. The increase in the refuse was previously discussed and staff will check on those figures and make any necessary adjustments before this is taken to the City Council for approval. Motion by Peterson, seconded by Schmitt, to waive the reading of Resolution 2011-08, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Peterson, seconded by Schmitt, to adopt Resolution 2011-08 a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights adopting the 2011 PVVS Budget of $279,101 and recommending this budget to the City Council for approval. All ayes. MOTION PASSED. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS HRA RESOLUTION 2011-08 RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADOPTING THE 2010 BUDGET FOR PARKVIEW VILLA SOUTH. BE IT RESOLVED By the Columbia Heights Housing and Redevelopment Authority (HRA) of Columbia Heights, Minnesota as follows: Page 8 WHEREAS, the City had constructed in 1991 Parkview Villa South (PVVS), a 45-unit rental apartment building, for the purpose of providing housing for low-income seniors age 55 and older. NOW, THEREFORE BE IT RESOLVED BY THE HRA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The HRA adopts and recommends to the City Council for approval the 2012 Parkview Villa South budget of $279,101.00 The Executive Director is instructed to transmit a copy of this resolution to the City Manager and City Finance Director of the City of Columbia Heights, Minnesota. APPROVED THIS 25th DAY OF October, 2011. Attest by: ________________________________ __________________________ Walter R. Fehst, Executive Director Tammera Diehm, Chair 12. Smoking Location-Discussion Item CommonBond staff has researched the cost of constructing a shelter for smokers that would be re- located away from the building in an attempt to alleviate secondhand smoke from entering the building. The shelter would meet the MN Clean Indoor Air Act and would be placed further away from the building near the picnic table northeast of the entrance. Laura reviewed the costs with the members. She said the cost of the shelter alone is about $5,600 and estimates the concrete slab would be $2,000, plus some labor costs which would bring the total cost to approximately $10,000. It was noted that grant money cannot be used to provide this shelter. Nawrocki asked if staff had checked with MTC to see if they had a used one they would be willing to donate since they have been replacing shelters throughout the area. Laura said she would contact them and find out. Schmitt asked if the shelter would be handicap accessible. Laura said there would be concrete from the door of the building to the shelter itself, so it would be considered accessible. Sidewalks would need to remain shoveled during the winter months. Another option considered was to let residents smoke by the door in winter months since the windows are shut for the winter and to move the “designated smoking area” away from the building April-November. Ken Block, unit #315, asked if it had to be lit, and Laura said it would not be. Lyn Miner, unit #202, said the smoke will enter units even if the shelter is moved if the wind blows the right way. She said the ac units tend to suck the smoke in. She said the other factor that bothers people is the noise that is created by everyone congregating in one spot. Rita Nelson agreed. Diehm asked how many smokers there are at Parkview. The residents thought there were about 15. Page 9 Adam Aliou wondered if the smoking area could be kept where it is and install some type of ventilation system that would blow the smoke in another direction. Diehm said that would be hard to do since it is outside. He wondered if an awning would help it from going up and into the residents’ units. Diehm said other facilities are facing this same problem. She wanted staff to contact other facilities and see what they were doing to handle this issue. She felt that $10,000 was more than the City could justify for 15 smokers. After some discussion, the Board directed management staff to see if MTC would be willing to donate a shelter. 13. Ductwork Contract Over the past few years the duct runs on the roof of Parkview Villa North and South have been deteriorating. Repair work has been done by patching areas that have needed it and that no longer is working; recently roof leaking occurred in a unit. Staff recommends tearing off the current insulation and replace with new insulation. Based on the bids, staff recommends Zephyr Services, Inc. in the amount of $23,250.00 and would use Parkview Villa North reserve funds.. Zephyr will remove and replace exterior duct insulation. The new insulation will consist of R-8 extruded polystyrene wrapped with Venture Clad, an insulation tape. Laura Sheak told members that Walker Roofing was low bidder, but they did not bid the use of Venture Clad and also would not provide any references. Nawrocki asked what the specs called for. Laura said formal specs were not prepared. She contacted four companies and asked them how they thought the duct could be fixed. Three of the companies recommended the Venture Clad application. When she contacted Walker and asked him what his bid would be to use that product, they weren’t familiar with the product at all, and therefore, would not supply an alternative bid. Nawrocki stated he believed that formal specs should have been prepared so everyone was bidding on the same thing since the cost would exceed $15,000. Laura said that all the companies (except Walker) did bid on the same product even though it was done without the formal specs. She also stated she had consulted with CommonBond’s Construction Manager during this process. Diehm stated that she didn’t think formal specs were necessary and that since the roof/ductwork is leaking, time is of the essence. Since the information was brought to the Board for approval before proceeding, she was satisfied with how it was handled. Schmitt agreed and applauded management staff for seeking out bids and researching information on the Venture Clad product. Motion by Schmitt, seconded by Peterson, to approve the bid from Zephyr for replacement of insulation on the ducts of Parkview Villa North in the amount of $23,250.00 using Parkview Villa Reserve funds. Roll Call: Nawrocki-nay Schmitt, Peterson, Diehm-aye MOTION PASSED. Page 10 nd 14. 2 Floor Modernization Laura Frost explained that at the April 20, 2004 Regular HRA Meeting, the Board reviewed and approved the plans and specs to begin an eight-phase project to modernize all PVVN units, current phase of the project is the nd 2 floor. The remodeling would include new entry doors, kitchen cabinets, appliances, lighting, countertops, bathroom vanities, kitchen and bathroom faucets et al. – plus new carpeting in the hallways, and the tub room and laundry room (alternates 1 and 2). The project was advertised in the Focus, the Builder's Exchange of Minneapolis and St. Paul, McGraw-Hill Construction Data, Reed Construction Data and the National Association of Minority Contractors' Plan Room, which resulted in 4 bids. Funding will come in part from the FY 2010 HUD Capital Fund Program and the FY 2011 HUD Capital Fund Program. Award and signature of the contract would mean that all of the FY 2010 CFP Funds would be obligated, and expended within the required time period. Once the contract is approved, a Notice to Proceed letter will be written authorizing the work to begin. The 3 lowest bids are summarized in the next paragraph and the bid tab is attached for review. Below are the bids for the 2nd floor rehab general contractor proposals/bids. The bids closed on October 7, 2011 at 2:00pm in the afternoon. The general contractor that staff recommends is the same contractor that has completed the previous floors in the building modernization. Staff and WAI (architectural firm) have reviewed all bids for accuracy and completeness of incorporating all aspects of the proposed modernization project. Staff recommends that Project One Construction be awarded the 2nd floor modernization project / contract. Project One Const: Is the lowest bid in the amount of $88,500 for the 2nd floor modernization of all 11 units and includes the replacement of the hallway carpet on the 2nd floor and the tub and laundry room. Frerichs Const: was the second lowest bid in the amount of $98,490.00 for the 2nd floor modernization of all 11 units and includes the replacement of the hallway carpet on the 2nd floor and the tub and laundry room. McFarland Const was the third lowest bid in the amount of $114,180.00 for the 2nd floor modernization of all 11 units, to include the replacement of the hallway carpet on the 2ndfloor and the tub and laundry room. Staff recommends awarding the contract for Phase 7 of the PVVN Apartment Modernization Project to Project One Construction. Questions from members: Schmitt questioned what would be included in this renovation work. Lisa Wilcox Erhart reviewed the scope of the project with the members. nd Motion by Peterson , seconded by Schmitt , to approve the bids and award the contract for Phase 7 (2 floor) of Parkview Villa North Apartment Modernization Project to Project One Construction for an amount not to exceed $88,500; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. MOTION PASSED. PUBLIC HEARINGS 15. Approval of 2012 PHA Plan-Resolution 2011-09 Lisa Wilcox Erhart reminded members that The Quality Housing and Work Responsibility Act of 1998 requires all Housing Authorities to prepare an Agency Plan each year and a five-year plan every five years. Staff has completed the draft copy of the 2012 Columbia Heights Agency Plan. A summary of the Plan’s contents and a full copy of the draft plan with attachments and supporting documents have been available for review by the public at Parkview Villa’s leasing office, City of Columbia Heights Community Development Department and the Columbia Height’s Public Library. Staff attended a Parkview Villa Resident Advisory Board October meeting to review the plan. To date no public comments have been received. Page 11 HUD requires a variety of components and documents to be incorporated into the annual plan. They include a PHA plan update showing annual and 5-year plan capital needs updates, progress update, statements of needs and resources, and numerous HUD certifications. After the Public Hearing on October 25, 2011 the HRA Board can make any final modifications to the plan and authorize staff to submit the final document to HUD. The entire document will be generated electronically and transmitted to HUD. She told members that the potential sale of the building is referenced in the report, and reviewed the various documents with them. Staff recommends the HRA approve the 2012 PHA plan as presented. Diehm asked Lisa Wilcox Erhart if the report included all necessary documents to make us compliant with all the Fair Housing Rules and ADA Requirements. Lisa said all necessary documents would be filed and CommonBond follows those policies. Motion by Peterson, seconded by Schmitt, to waive the reading of Resolution 2011-09, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Peterson, seconded by Schmitt, to Adopt Resolution 2011-09, a Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) confirming approval of the 2012 Public Housing Agency Certifications of Compliance with the 2012 PHA plan and related regulations, and authorizing it’s submission to HUD. All ayes. MOTION PASSED. HRA RESOLUTION 2011-09 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT (HRA) CONFIRMING APPROVAL OF THE 2012 PUBLIC HOUSING AGENCY CERTIFICATIONS OF COMPLIANCE WITH THE PHA PLANS AND RELATED REGULATIONS WHEREAS, The Department of the Housing and Urban Development has requested that Public Housing Agencies submit a Certification in regard to Public Housing Agency Compliance with the PHA Plans and Related Regulations; and WHEREAS, The 2012 PHA Plan was published for review and comment in the local newspaper and is located at the local Public Library, administrative offices of the PHA, and the PHA development management office. WHEREAS, such Certification also requires the formal approval of the Board of Commissioners; NOW, THEREFORE BE IT RESOLVED, by the Board of Commissioners of the Columbia Heights Housing & Redevelopment Authority that the attached (Appendix) Public Housing Agency Certification of Compliance with the PHA Plans and Related Regulations is hereby approved. TH ADOPTED THIS 25 DAY OF OCTOBER, 2011. MOTION BY: Peterson SECONDED BY: Schmitt ROLL CALL: All ayes HOUSING & REDEVELOPMENT AUTHORITY ________________________________________ Chair-Tammera Diehm ________________________________________ Executive Director-Walter Fehst Page 12 OTHER BUSINESS Memo Update on Status of Aeon Purchase-Cartney reviewed a written memo that was distributed to members to update them on the progress being made for the potential sale of Parkview to Aeon. She explained to those in attendance that Aeon and the HRA will have to go to HUD’s Special Application Center to process a special application to dissolve the HUD status of Parkview. This process takes about 18 months, so it will be at least that long before we know if the sale will go through or not. She also told members that Aeon is looking into having Parkview Villa North be a project based Section 8 (income based) building. The Metro HRA is supportive of that plan. If it obtains status as a project based Section 8 building, residents may qualify for Section 8 status which would set their rent at 30% of their income. The Section 8 voucher stays with the building however, so residents cannot take the voucher with them if they move. The south building would remain a market rate building. Nawrocki asked what the findings are for the tests that have been done thus far. Cartney said she hasn’t seen a copy of the report, but isn’t aware of any major issues. He then asked if a purchase price has been talked about yet? Cartney said that will depend on what financing terms they can get, and what programs they will qualify for. These things will determine the price they are willing to pay for the property. Peterson said they are doing their due diligence on the property so they can evaluate what it is worth to them. Diehm suggested that staff let Aeon know that an individual member of the Board wants to see some financial details of what they would consider the property to be worth. She suggested they provide some type of executive summary based on the information they have thus far. Update on the Star Bar- Fehst told residents that the City Council suspended the Liquor License for the Star Bar for a period of 7 days based on their status of Tax Delinquency with the State of MN. He went on to explain that once Mr. Moreland comes into compliance he would be allowed to re-open. He will remain closed until he becomes current with all fees owing. The next regular HRA meeting is scheduled for January 24, 2012 at Parkview Villa. The meeting adjourned at 8:25 pm. Respectfully Submitted, Shelley Hanson Recording Secretary