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HomeMy WebLinkAboutHRA mtg April 23, 2013HOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE MEETING OF APRIL 23, 2013 Call to order – The meeting was called to order by Chair Diehm at 7:00 pm. Roll Call – Members present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Bobby Williams, Rheta Nelson, and Tammera Diehm. Staff Present: Executive Director-Walt Fehst, Community Development Director-Scott Clark, Assistant Community Development Director -Sheila Cartney, and Secretary-Shelley Hanson. CommonBond Staff- Laura Frost and Jen Vota Pledge of Allegiance – Recited CONSENT AGENDA Approve Minutes of January 22, 2013 and March 4, 2013. Approve Financial Reports and Payment of Bills for January, February, March 2013 on Resolution 2013-06. Questions from members: Schmitt noted that the occupancy of the south building was 80% occupied according to the reports. She wondered if any more of the units had been rented since the reports were submitted. Laura stated that one unit was occupied as of April 1st, four are scheduled to move in May 1st, and that will leave one vacancy. She stated the move-in special is still in effect and has helped prompt interest in the units. Nawrocki stated there wasn’t much interest for the first 3 months of that move-in special. Laura stated part of the reason is that older residents don’t like to move during the winter months and it takes a while for the sign and other advertising to be noticed. Nawrocki asked about a figure in the March 4th minutes, first page, last paragraph. He noted the fund balance for the south building should be approximately $750,000, not $100,000 as stated. Clark confirmed that is correct and the minutes will be changed to reflect that correction. Nawrocki then asked about the use of the funds. Clark stated that would be discussed later in the sale process since the amount may fluctuate between now and the closing, and any decision made by the Council in regards to a new Library could also be part of the discussion. HRA Minutes Page 2 April 23, 2013 HRA RESOLUTION 2013-06 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR JANUARY, FEBRUARY AND MARCH 2013 AND PAYMENT OF BILLS FOR THE MONTHS OF JANUARY, FEBRUARY AND 2013. 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 WHEREAS, the financial statement for the months of January, February and March 2013 and the list of bills for the months of January, February and March 2013 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. Passed this 23rd day of April 2013. MOTION BY: Nawrocki SECONDED BY: Peterson AYES: All ayes Resolution 2013-05 Interfund Loan to City Clark told members that inter-fund borrowing is a routine method of managing cash flow and maximizing interest income. By about May of each year, the City has usually spent down its short-term cash from the past December’s tax collections. The City then sells some of its medium or longer term investments to maintain sufficient cash flow until it receives the June tax collections. This typically results in the City earning less on the investments sold early, compared to what these investments would pay if held to full maturity. HRA Minutes Page 3 April 23, 2013 Currently, the HRA’s Parkview Villa North Fund 203 has a significant cash balance of approximately $900,000 held in a savings account that is only paying about 0.35% annual interest. This is held for long-term repair needs and not for current operations. This is not invested in longer-term assets paying a better interest rate because the HRA is in the process of selling the Parkview property. Analysis From the City’s standpoint, if it received a sixty day loan from the HRA of $750,000 with a 1.0% per annum rate of interest, the City could hold more of its existing investments to full maturity, and repay the loan when the June tax collections are received. The interest paid to the HRA under these terms is less than the estimated interest penalty the City would incur to sell investments early. From the HRA’s standpoint, issuing the loan provides a safe short-term investment at almost three times the rate of interest the HRA is currently earning on these funds. If some unexpected event was to occur, causing the HRA to need repayment of the loan sooner than sixty days, the loan provides the option to modify the terms by mutual resolution. Staff recommends that the HRA Board of Commissioners adopt the following Resolution. Questions/comment s by members: There were no questions on this item. Motion by Nawrocki, seconded by Peterson, to waive the reading of Resolution 2013-5 and 2013-06 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Nawrocki, seconded by Peterson, to approve the consent agenda items with the correction to the minutes as noted, and to adopt Resolution 2013-05 and 2013-06. All ayes. MOTION PASSED. HRA RESOLUTION 2013-5 COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION APPROVING AND SPECIFYING TERMS OF INTER-FUND LOAN TO THE CITY OF COLUMBIA HEIGHTS RECITALS A. The City of Columbia Heights (“City”) and its Housing and Redevelopment Authority (“Authority”) desire to enter into a mutually-beneficial sixty (60) day inter-fund loan agreement. B. The Authority is currently undertaking to divest itself of all operations. Therefore it is impractical for the Authority to invest in long-term high-earning investments at this time. Consequently, the Authority’s building repairs reserve for Parkview Villa North is currently invested in a demand deposit account with an interest rate of approximately 0.35 percent per annum. It would be advantageous for the Authority to safely earn a higher rate of interest for a sixty day period. HRA Minutes Page 4 April 23, 2013 C. The City receives two large payments of property taxes each year as its primary source of funds. Therefore the City invests upon receiving these payments, and then liquidates the investments over the following six months until the next tax collection. It would be advantageous for the City to hold more of these investments to full maturity beyond the next tax collection date of June 20, 2013, instead of liquidating them in the current market. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Housing and Redevelopment Authority: 1. The Authority authorizes of a loan to the City in the maximum amount of $750,000 (the “Loan”), to be drawn from Fund 203 – Parkview Villa North. Such amount will be made available to the City at April 24th, 2013. 2. The outstanding principal balance of the Loan bears interest at the rate of 1.0 percent per annum. Interest accrues from April 24th, 2013. 3. The Loan is payable from the City’s Investment Fund 886 and shall be due in full, including all accrued interest, on June 24th 2013. 4. The principal sum and all accrued interest payable under the Loan are pre-payable in whole or in part at any time by the City without premium or penalty. All payments shall be applied first to accrued interest, and then to unpaid principal of the Loan. 5. The Authority and City may amend the terms of this Loan at any time by mutual resolutions. 6. The Authority authorizes and directs staff to take all actions and execute any documents necessary to carry out the intent of this resolution. Passed this 23rd day of April 2013 Offered by: Nawrocki Seconded by: Peterson Roll call: All ayes BUSINESS ITEM 7. Report of Management Company Laura announced that the new on site manager started this week. Heidi Mindestrom has worked in affordable housing for over 20 years and came from Legacy/Premier Management. Laura also reported that Parkview has been awarded a grant for 2013 in the amount of $44,000. She said they have been working on the specs for the first floor rehab and the bid should go out in the next 8 weeks. Laura also stated there is a meeting set up for next week to discuss the replacement of the fire panel. HRA Minutes Page 5 April 23, 2013 Resident Council Minutes LeeAnn gave a brief report on the Resident Council items. She stated they recently had a guest speaker regarding how to build strength and maintain balance in order to prevent falls. They also have started an exercise and yoga class on site, have started a garden club, and recently had a magician perform for the residents. Citizens Forum Laverne Harper #408-voiced her concern about LaBelle Pond being taken over by weeds. Nawrocki commented that it was meant to be a natural wetland habitat. Fehst stated that he will pass on her concern to Public Works but we are regulated by the State to as to how much we can actually alter the site. Peterson and Schmitt both told residents that there is a project planned over the next couple of years to re-do the shoreline, remove the rotted timbers, and to do some pond cleanup, so hopefully they should see some improvements. Mary #703-expressed her concern about the number of geese and ducks and how aggressive they are. It deters residents from actually walking around the pond area. LeeAnn #424-part of the problem is people in the area feed them so they keep hanging around. Diehm suggested they put up signs and pass out notices stating “do not feed the geese”. Rheta Nelson #510-people don’t pay any attention to notices that are distributed or posted. Ms. Bircher #911-she stated that it isn’t the bird feeders that cause the problems—it’s the food, chips, candy, and even meat that is thrown out to them. Fehst said he will have staff look into whether they could be rounded up and then relocate them. He said there have been programs in the past that have tried this approach. He said this problem is not exclusive to LaBelle Park, but is being experienced throughout many metro areas. 10. AEON Update Clark said that AEON has completed most of their investigation of the buildings and is preparing a plan as to what updates they will do to the buildings. He expects they will start holding meetings in June to inform residents what projects are planned. Clark then told members that staff has been working on the voluntary conversion plan which has proven to be a difficult process. He said in the last 10 days they have been assigned a worker to facilitate the process so it should go better from here forward. He expects this will be a 90 day process to complete. HRA Minutes Page 6 April 23, 2013 Clark reported that AEON had previously applied for HOME Funds and was tentatively awarded $325,000. He said the County took final action on this and approved that funding. He said he still expects the sale to close by year end. Adam #611-asked what type of assistance residents will have. Clark stated it will be similar to what they have now and that rent structures will remain the same. 11. Other Business Diehm announced cookies were available after the meeting so residents could informally chat with members if they wished to. Diehm stated the next regular meeting is scheduled for Tuesday, July 23rd, 2013, at Parkview Villa. The meeting was adjourned at 7:30 pm. Respectfully submitted, Shelley Hanson Secretary