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HomeMy WebLinkAboutApril 22, 2014 min HOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE MEETING OF APRIL 22, 2014 1.Call to order – The meeting was called to order by Vice Chair Williams at 7:00 pm. 2.Roll Call – Members present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Bobby Williams, and Rheta Nelson. Members Absent: Tammi Diehm Staff Present: Executive Director-Walt Fehst, Community Development Director-Scott Clark, Assistant Community Development Director-Joseph Hogeboom, and Secretary-Shelley Hanson. CommonBond Staff- Laura Frost and Heidi Mindestrom 3.Pledge of Allegiance – Recited CONSENT AGENDA 4.Approve Minutes of January 28, 2014. 5.Resolution 2014-06: Approve Financial Reports and Payment of Bills for January, February, and March 2014. Questions from members: Schmitt questioned why there were late fees listed on the General Ledger of January payments for several accounts (Home Depot, Comcast, City of Columbia Heights Water). Frost said she would check with the accountant to see if late fees were indeed paid, and why late fees were incurred. Nawrocki asked about an outstanding check (#1786) dated back to June 2013 for Johnson. Frost said she would check into that also and report back. Motion by Peterson, seconded by Nawrocki, to approve items on the Consent Agenda as presented. All ayes. MOTION PASSED. HRA Minutes Page 2 April 22, 2014 HRA RESOLUTION 2014-06 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR JANUARY, FEBRUARY, AND MARCH, 2014 AND PAYMENT OF BILLS FOR THE MONTHS OF JANUARY, FEBRUARY, AND MARCH 2014 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 2014 and the list of bills for the months of January, February, and March 2014 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. nd Passed this 22 day of April 2014. MOTION BY: Peterson SECONDED BY: Nawrocki AYES: All ayes __________________________________ Chair Attest by: ________________________________________ Shelley Hanson, Secretary HRA Minutes Page 3 April 22, 2014 BUSINESS ITEM 6Report of Management Company . Frost told members that we have received $40,000 thus far for the Operational Grant. She expects that we should receive additional funds next quarter. According to the HUD site the potential amount of the 2014 Capital Grant is approximately $85,000 but it has not been released yet. Clark reminded members that if the closing takes place in early 2015, these funds will need to be used on the projects Aeon has determined necessary according with their improvement schedule. Clark then informed the members of the timeline for the projects taking place over the next month or two. He said Aeon will be on site overseeing the projects in conjunction with CommonBond. Frost then told members that the vacancy issue is improving now that the weather has improved. She said they have put up new signage again, they have two open houses planned thth on May 18 and 28th, they are hosting a senior tour on May 12, and are getting social service referrals. Frost stated they were listing the vacancies on Apartment.com, but have cancelled that as no interest was coming from that site. She told members that there are currently two ndst vacancies in the North building-one will be filled May 2 and the other on June 1. In the South building, three will be filled in April, one in May, and two others are pending approval, which will leave 4 units still available. Nawrocki still felt this rate of vacancy is unacceptable. Schmitt thought there had been big improvements made with filling the vacancies as noted above, and appreciated management’s efforts. 7.Resident Council Minutes Shirley Benitez reviewed the minutes of the Resident Council for the Board. She noted who the floor representatives are for the neighborhood watch group they created within their building. Williams thanked the Resident Council for supplying this information to the Board and for keeping them abreast of what is happening in the building. 8.Citizens Forum Lyn Miner said now that the weather has improved and residents are starting to open their windows, it gets noisy for those on the east side of the building. The voices and the smoke both carry to units above the entry and smoking shelter. She suggested that radios be banned or that headphones be required. She urged residents to speak softly, and that smoking only take place in the shelter, not at the picnic table. She said it especially becomes an issue at night or on weekends when someone plays their car radio. HRA Minutes Page 4 April 22, 2014 Frost asked if it would help to post a sign noting quiet time between the hours of 10 pm and 8 am. Mindestrom reminded residents to report loud noise to management so they can address it with the proper parties. Peterson agreed with management to post signage reminding residents to be considerate with use of radios and other noise that affect residents especially during certain hours. 9. Resolution 2014-07: Aeon Purchase Agreement Extension Clark stated that on August 27, 2012 the Housing and Redevelopment Authority (HRA) approved a Purchase Agreement with Aeon for the sale of Parkview Villa North and South. Based on terms of that Agreement the termination date, including Buyer extension provisions, ends on April 30, 2014. The attached resolution extends the Purchase Agreement, as written until the end of April 2015. This amended Agreement is written without any substantive changes to the original since it is understood, and written within the original Agreement, that major changes will occur once a final deal is agreed to with the Department of Housing and Urban Department. The economic structure between Aeon and the HRA will be driven by the ultimate contract rent allowance for the North building, which in turn, will determine key financial determinations such as the price for the South building, rehabilitation amounts, etc. The primary reason that the Agreement needs to be addressed now, and not have a period of time where there is no official contract in-place, stems from the fact that Aeon will need to extend their HOME fund appropriations from the MHFA, and an in-place and continuous signed Agreement is critical. Clark said that additional amendments will be considered in the coming months, but recommends extension of the present contract as presented. He went on to update the members on the current status of the tentative verbal agreement they have reached with HUD. HUD has agreed to a rent structure that will be substantially lower than originally anticipated by Aeon. There are a lot of different components to the agreement, but we could potentially close on the sale by February or March 2015. Once the agreement is on paper, Aeon will need to complete their financing package that has been on hold during the stalled negotiations with HUD. Due to the much lower than expected rent structures, the south building may not produce the equity the city had originally hoped for. HUD doesn’t care about the south building or how it affects the overall bottom line of the total sale. They are looking at the north building only and the anticipated rents have dropped from the originally requested amount of $790 down to $640. This means there is less operating income which will affect Aeon’s financing requirements. Clark explained that instead of getting the sales proceeds of the south building immediately that the HRA may have to take a Seller’s Finance Note. He said one way to pay back a portion of the note would be to extend the antenna lease to allow the City to recapture funds for a period of 10 or 15 years in addition to negotiating for some cash flow proceeds. Clark also said that currently taxes on this site are paid under the PILOT program. Once the sale takes place, the City would get significantly more tax dollars than the current program generates. Clark said these are items that will have to be negotiated in the coming months in order to make the sale go through based on what HUD has agreed to. HRA Minutes Page 5 April 22, 2014 Questions from members: Nawrocki said this is going backwards and he is not in favor of losing more money in this transaction. Clark admitted there is probably less money in the deal now, but also reminded Mr. Nawrocki that the top two priorities of the Board when the decision was made to sell Parkview was to ensure that we kept affordable public housing for the residents and to provide better services to the people that live there. Everyone knew that the monetary gain in this project may not meet the expectations that some hoped for. Motion by Peterson, seconded by Schmitt, to waive the reading of Resolution 2014-07, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Peterson, seconded by Schmitt, to adopt Resolution 2014-07, being a Resolution Approving First Amendment to Purchase Agreement, Dated April 22, 2014, For the Sale of Parkview Villa and South to Aeon. All ayes. MOTION PASSED. HRA RESOLUTION 2014-07 COLUMBA HEIGHTS HOUSING AND REDEVLOPMENT AUTHORITY APPROVING FIRST AMENDMENT TO PURCHASE AGREEMENT, DATED APRIL 22, 2014 FOR THE SALE OF PARKVIEW VILLA NORTH AND SOUTH WHEREAS, the City of Columbia Heights Housing and Redevelopment Authority (HRA) has expressed a desire to sell Parkview Villa North and South, and WHEREAS, after a long search and an interview process the HRA identified Aeon, a major regional low and moderate income housing provider, as a potential Buyer, and WHEREAS, on April 16, 2011 the HRA approved a memorandum of understanding with Aeon that established the goals of the sale, and WHEREAS, to date Aeon has committed themselves to the sale of Parkview Villa through work including complete building analysis, grant applications, funding strategies, submittal of the Public Housing Agency dissolution application, resident meetings and a variety of other tasks, and WHEREAS, this work has been done in conjunction with the HRA staff and the HRA board itself, and WHEREAS, on August 27, 2012 the Housing and Redevelopment Authority approved and entered into a purchase agreement with Aeon, and WHEREAS, that Agreement has been formally extended by Aeon until April 30, 2014, and WHEREAS, all parties have acted in good faith and a need arises to extend the original Agreement until April 30, 2015. NOW THEREFORE BE IT RESOLVED: The Housing and Redevelopment Authority Approves First Amendment to Purchase Agreement, Dated April 22, 2014, For the Sale of Parkview Villa North and South nd Passed this 22 day of April 2014 Motion by: Peterson Second by: Schmitt Roll Call: All ayes ___________________________ Tammera Diehm, Chair _____________________ Shelley Hanson, Secretary HRA Minutes Page 6 April 22, 2014 Administrative Update Clark told members that at the next EDA meeting the members will be discussing the housing project for the Office Building. Staff was informed about 3 hours prior to this meeting that the developer would be bringing a plan for consideration for floors 2-6. Clark said it may be a complicated proposal, but staff hasn’t seen the formal submittal yet. He said that NE Bank would remain on site as part of the plan. Clark stated that this was his last HRA meeting. He thanked the Board and the residents for their support and friendship over his tenure with the City. He told the residents that he has been impressed with the fact that they have created a nice family atmosphere at Parkview Villa and that they are concerned with what happens in their home. Clark then introduced Joe Hogeboom as the new Director. Shirley Benitz thanked Scott for his hard work with Aeon and for keeping the residents in the loop during the whole process and for listening to resident’s concerns over the last 6 years. His support has been appreciated. Williams stated the next regular meeting is scheduled for Tuesday, July 22, 2014, at Parkview Villa. The meeting was adjourned at 7:50pm. Respectfully submitted, Shelley Hanson Secretary