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HomeMy WebLinkAboutHRA mtg Mar 14, 2016HOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE MEETING OF MARCH 14, 2016 Call to order – The meeting was called to order by Chair Diehm at 6:30 pm. Roll Call – Members present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, John Murzyn Jr, Tammera Diehm, and Rheta Nelson. Staff Present: Executive Director-Walt Fehst, Community Development Director-Joseph Hogeboom, and Secretary-Shelley Hanson. Legal Counsel- Martha Ingram, Kennedy & Graven CommonBond Staff- Laura Frost. Pledge of Allegiance – Recited CONSENT AGENDA Approve Minutes of July 28, 2015 Approve Financial Report and Payment of Bills for July-December 2015 on Resolutions 2016-01 Questions from members; No one had any questions. Motion by Schmitt, seconded by Murzyn, to approve items on the Consent Agenda as presented. All ayes. MOTION PASSED. HRA RESOLUTION 2016-01 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR JULY-SEPTEMBER, 2015 AND PAYMENT OF BILLS FOR THE MONTHS OF JULY-SEPTEMBER, 2015. 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 HRA Minutes Page 2 March 14, 2016 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, 2015 and the list of bills for the months of July, August, and September, 2015 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 14th day of March, 2016. MOTION BY: Schmitt SECONDED BY: Murzyn AYES: A ll ayes __________________________________ Chair Attest by: ______________________ Shelley Hanson, Secretary BUSINESS ITEMS Approve Repayment of North Building Operating Grant to HUD Kloiber told members that under the terms of the sale of Parkview Villa to Aeon, the HRA must repay the remaining unused portion of the HUD operating grant funds received as a rent subsidy for the North building to HUD. This operating grant was received by the HRA in annual installments over many years. During the years of operation, the HRA was allowed to retain the unused portion as a reserve to cover possible large or unexpected building expenses of the North building. HRA Minutes Page 3 March 14, 2016 The repayment is due to HUD by March 24, 2016. After payment of all final expenses allocable to the North building, the remaining unused portion is $927,139. This is roughly equivalent to 18 months of operating budget for the North building. Kloiber stated that wire transfer instructions were received today from HUD in order to make the payment. The final expenses are included in the financial report dated December 31, 2015, provided in the agenda packet. The final expenses were determined by combining: Routine expenses recorded by the management company CommonBond. Amounts paid through the title company at closing, such as closing fees and prorated utilities. Certain items paid through the City finance department and charged to the HRA, such as the final audit and legal costs. The $927,139 repayment of the operating grant to HUD is in addition to the $5,200,000 the HRA has agreed to pay HUD from the sale of the North building and land. That $5,200,000 payment is not due until the HRA collects the sales price from the buyer Aeon in 30 years. Kloiber told members that no part of this HUD repayment relates to the reserve from the South building, as HUD has no participation in the South building. The remaining reserve from the South building is $1,008,450; and must be used for purposes related to housing. Nawrocki asked if we could use the funds to offset the levy to lower taxes for residents. Hogeboom said this would be discussed at the goal setting session to determine how the Council would like to use these funds. Staff recommends approval of the repayment to HUD. Motion by Peterson, seconded by Schmitt, to approve the repayment of the unused operating grant to US Department of Housing and Urban Development, in the amount of $927,139. Roll Call: All ayes. Parkview Villa Construction Update Hogeboom told members that AEON Housing began a massive construction and remodeling project at Parkview Villa immediately following the sale of the property in September, 2015. The scope of work includes extensive interior renovations to the common spaces and some of the dwelling units, reconfiguration of the common spaces, new widows, updates to the mechanical/electrical systems and installation of new siding on the South building. Outdoor gathering areas will also be reconfigured. The project is approximately half complete and is expected to be done by fall of 2016. Most of the public spaces are temporarily closed due to the construction. Commission member Nelsen also described the work being done. She said the ADA units are now complete and residents have moved back into them. Nawrocki told her that the City is considering moving the voting precinct to the new Library when it is complete, rather than using Parkview Villa as has been done in the past. She thought that would work out just fine. HRA Minutes Page 4 March 14, 2016 Proposed New HRA Format Discussion Hogeboom stated that this meeting will serve as the last regular meeting of the HRA as it is set up currently. However, because the HRA technically needs to exist as a legal entity if there are outstanding contracts with the US Dept. of HUD, the HRA cannot be dissolved. Staff and the EDA/HRA Attorney discussed the future of the HRA, and came up with a proposal to amend the bylaws of both the EDA and the HRA to allow the same members of the EDA to serve as members of the HRA. Under this new arrangement, the HRA would have to convene at least once a year to discuss HUD related business. However, meetings could occur adjacent to EDA meetings and involve the same people. If the HRA is amendable to this course of action, staff will bring proposed bylaw changes to an upcoming EDA meeting. Staff seeks direction from the HRA members in moving forward with changes that would allow EDA members to serve as the HRA Board. Diehm stated that most cities have it set up as the Attorney has suggested. Schmitt asked if the two Commissions can just be combined into one. Hogeboom responded that according to HUD rules there has to be a clear separation even though it can have the same members. He said the EDA will still have the 5 councilmembers and 2 members at large from the community, but the HRA would just be the 5 councilmembers. The HRA would need to hold a meeting once a year to elect officers and then could adjourn before going into another meeting. Chair Diehm thanked Laura Frost from CommonBond for her cooperation and assistance during the sale process. Her knowledge and performance were appreciated by the EDA/City Council. Hogeboom told members they would be notified of a Special meeting that will be called in order to amend the bylaws and to adopt the State Retention Schedule once they are complete. The next regular HRA meeting will be scheduled for January 3, 2017 at City Hall. The meeting was adjourned at 6:50 pm. Respectfully submitted, Shelley Hanson Secretary