HomeMy WebLinkAboutHRA mtg Jan 9, 2017HOUSING & REDEVELOPMENT AUTHORITY
MINUTES OF THE MEETING
OF JANUARY 9, 2017
Call to order – The meeting was called to order by Executive Director Fehst at 8:47 pm.
Roll Call – Members
present: Donna Schmitt, Bobby Williams, John Murzyn Jr., and Connie Buesgens.
Others Present: Executive Director Walt Fehst, Deputy Director Joe Hogeboom, Assistant Treasurer Joe Kloiber,
HRA Attorney Martha Ingram and Economic Development Manager Keith Dahl
Oath of Office:
Connie Buesgens
Robert Williams
Election of Officers:
Motion by Schmitt, seconded by Buesgens,
to elect officers as follows:
Chair- Murzyn
Vice Chair- Williams
Secretary/Treasurer- Buesgens
All ayes. Motion Passed.
Approval of Modification of Note Terms for Parkview Villa
HRA
Attorney Martha Ingram introduced this item. Ingram explained that the HRA sold Parkview Villa to Aeon in September, 2015. At that time, the majority of the purchase price was financed
through a promissory note from Aeon to the HRA. The 30 year term of the note matured no later than September 30, 2045. Attorney Ingram further explained that the bulk of the financing
is through Minnesota Housing Finance Agency (MHFA), and that the HRA agreed to subordinate its interest in the facility to MHFA. Now that construction improvements are complete at the
facility, Aeon is taking out its construction loan with a permanent loan from MHFA. As such, MHFA requires both the Note and the Partnership Note be amended, extending their final maturity
to December 2047.
Chair Murzyn asked if the Board had any questions. Vice Chair Williams inquired about the nature of the original sale, as he was not serving on the HRA at the time
of the sale. Assistant Treasurer Kloiber explained that the sale transaction was constructed in a way in which the HRA would not receive funds from the Note until the Notes maturity.
Assistant Treasurer Kloiber indicated that the bulk of the proceeds must be paid to the U.S. Department of Housing and Urban Development (HUD) at that time. Assistant Treasurer Kloiber
pointed out that the HRA had retained the fund balance associated with Parkview Villa South, which amounts to a sum slightly under $1 million.
Commissioner Buesgens inquired about
how the former Parkview Villa South funds can be used. Attorney Ingram stated that HUD requires the funds can be used for either housing or certain economic development activities. Deputy
Executive Director Hogeboom stated that the Economic Development Authority will discuss this matter in further detail at a later meeting.
Commissioner Schmitt acknowledged that the City continues to receive revenue from a lease of a cellular telephone tower on the roof of Parkview Villa.
Chair Murzyn asked if there
were any further questions or comments. Hearing none, Murzyn requested a motion.
Motion by Buesgens, seconded by Schmitt to adopt HRA Resolution 2017-01, Approving the Extension of
the Term of Certain Promissory Notes in Connection with Parkview Villa.
Hogeboom stated that there are currently no additional HRA meetings scheduled in 2017.
The meeting was adjourned
at 9:20 pm.
Respectfully submitted,
Joseph Hogeboom
Deputy Director/ Acting Secretary