Loading...
HomeMy WebLinkAbout08-20-2010CITY OF MOUNDS • t •. • • MOUNDS VIEW CITY HALL FRIDAY, AUGUST 20, 2010 t-i 2. ROLL CALL EDC Members: Chair Gary Meehlhause, Vice Chair Jennifer Wagner-Harkonen and Commissioners Greg Belting, Jackie Entsminger, Jason Helgemoe, Torri Johnson & Dan Larson City Staff: Community Development Director Ken Roberts & Economic Development Specialist Heidi Steinmetz 6. EDC BUSINESS A. Continue Discussion About Housing Rehabilitation Program Options 8. REPORTS OF STAFF A. Update on Select Senior Living & Coventry Senior Living Projects B. Mounds View Business News C. Available Business Sites in Mounds View D. Upcoming Events • Festival in the Park -Saturday, August 21 • General Election - Tuesday, November 2 Friday, September 17, 2010 at 7:30am City of Mounds View Ramsey County, Minnesota Regular s, July 16, +11 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER Chair Gary Meehlhause called the meeting to order at 7:34am. 2. ROLL CALL Members Present: Chair Gary Meehlhause, Vice Chair Wagner-Harkonen, Commissioners Jackie Entsminger & Dan Larson Members Absent: Commissioners Greg Belting, Jason Helgemoe & Torri Johnson Staff Present: Community Development Director Ken Roberts & Economic Development Specialist Heidi Steinmetz 3. APPROVAL OF JULY 16, 2010 AGENDA Motion/Second: Commissioner Entsminger moved and Commissioner Larson seconded the approval of the July 16, 2010 EDC agenda.` Motion Carried: - 4 Ayes 0 Nays;, 4. APPROVAL OF APRIL 16, 2010 EDC MINUTES Chair Gary Meehlhause noted two corrections to the April 16th minutes: 1) clarify Anoka & Ramsey Counties on page one and 2) add Ken Roberts's name to item 8A on page two. Motion/Second: Vice Chair Wagner-Harkonen moved and Commissioner Larson seconded the approval of the amended April 16, 2010 EDC minutes. Ayes 0 Nays 5. SPECIAL BUSINESS There was no Special EDC business. 6. EDC BUSINESS A. Review Housing Rehabilitation Program Options Economic Development Specialist Heidi Steinmetz summarized her staff report prompted by a recent application for the FDA's Housing Replacement Program, which is a program that offers financial assistance to home owners or developers that want to replace blighted homes in Mound View with new, higher valued homes. Ms. Steinmetz provided background on the EDA/Council's recent discussions about refocusing the program to serve Mounds View residents better. She also included past EDC Draft EDC Minutes July 16, 2010 Page 2 of 4 meeting minutes from 2008, which was the last time the EDC discussed Mounds View's housing programs. Staff asked the EDC to discuss and provide feedback on the City Council's recent housing program discussions and requested ideas for structuring a housing program or programs that the EDC thinks would fill a need for Mounds View residents while not repeating an existing program. Commissioner Larson said that he attended the EDA's meeting this past Monday and has since driven around the City comparing the neighborhoods where the EDA had purchased homes vs. the neighborhoods where the EDA had denied Housing Replacement Program applications. He said that he noticed a big difference in the housing stock between the neighborhoods he compared, therefore does not think that the EDA should back away from acquiring blighted homes within the City. He thinks that newer or updated homes will provide much more tax base for the City. He mentioned that the EDA could provide demolition assistance to property owners that would rather sell an empty lot vs. a lot with a dilapidated home on it. Vice Chair Wagner-Harkonen agreed with Commissioner Larson's input. She said people are not building new homes right now but some people are purchasing property for investment purposes. She said neighbors would rather have an empty lot next door rather than a blighted property in the neighborhood. Chair Meehlhause agreed. Vice Chair Wagner-Harkonen added that an empty lot would be more attractive to buyers than a lot with a blighted home on it. Chair Meehlhause said that he agrees that the EDA should not drop the option of possibly purchasing blighted residential properties because the only other option of removing extremely blighted properties is eminent domain. Commissioner Entsminger agreed that the City should demolish blighted properties. She also asked that if the City were to establish a code enforcement rehabilitation loan program (like the example of the Tallahassee, FL program that was included in the EDC's packet), what :type of code violations would qualify for improvement under the program. Ms. Steinmetz answered that improvements would relate to life safety issues and structural issues rather than debris cleanup. Commissioner Entsminger added that she is not in favor of a deferred loan program because a deferred loan is a grant and the taxpayers should not have to pay for other people's home improvements. Community Development Director Roberts added that the Tallahassee program is for exterior improvements that would improve the image of a neighborhood. The program is not for the rehabilitation of a kitchen or a bathroom. He said the program is just one idea of a program that Mounds View residents might need. Commissioner Entminger said that the City should get involved in issues like this, especially to correct electrical problems because those are life safety issues. Motion/Second: Commissioner Larson moved and Commissioner Entsminger seconded a recommendation that the EDA consider implementing a program like Tallahassee, Florida's Code Enforcement Rehabilitation Program. Motion Carried: 4 Ayes 0 Nays Draft EDC Minutes July 16, 2010 Page 3 of 4 Motion/Second: Vice Chair Wagner-Harkonen moved and Commissioner Larson seconded a recommendation that the EDA retain the option of purchasing blighted residential properties (both the land and the structure) in their Economic Development toolbox. Motion Carried: 4 Ayes 0 Nays Motion/Second: Commissioner Entsminger moved and Commissioner Larson seconded a recommendation that the EDA allow more flexibility in how they allocate the $150,000 that has previously been budgeted for the EDA's Housing Replacement Program. Motion Carried: 4 Ayes 0 Nays Motion/Second: Vice Chair Wagner-Harkonen moved and Commissioner Entsminger seconded a recommendation that the EDA offer an ;option to pay for the demolition of blighted residential structures without purchasing the land. Motion Carried: 4 Ayes 0 Nays Commissioner Entsminger stated that she hopes the City Council will discontinue their discussions about City staff layoffs. She said that she does not think that City staff should have to hear about those discussions repeatedly because it's not productive for staff to have to walk on eggshells. She feels that the economy is going to turnaround and if the Council removes staff, the City will be behind the eight ball and will have to spend more time and money looking for replacements. Commissioner Entsminger left the meeting at this time (8.21 am). REPORTS OF COMMISSIONERS Commissioner Larson mentioned that he heard the Council say during this past Monday's meeting that they do not want to„get into the real estate business but he believes that the City is loosing money by, allowingnon-sellable lots sit vacant or blighted for too long. He said that Mounds View's large lots would be even more valuable in years to come due to Mounds View location near the Twin Cities. Vice Chair Wagner-Harkonen added that the City is loosing out on opportunities to improve neighborhoods by not using the EDA's allocated housing funds. Chair Meehlhause added that a dilapidated housing stock creates a negative impression of the community and negative impressions are difficult to change. 8. REPORTS OF STAFF ® Ms. Steinmetz provided verbal updates for Items 8A -F (adding a name County Road 10, Select Senior Living, farmers market, Mounds View business news, available business sites in Mounds View and upcoming events). ® Finance Director Mark Beer provided additional information about the Select Senior Living project. ® Community Development Director Ken Roberts provided a verbal update about the City's street project (area B/C) and the Coventry Senior Living project. 9. UPCOMING EDC MEETING The next regular EDC meeting is scheduled for Friday, August 20, 2010 at 7:30am. Draft EDC Minutes July 16, 2010 Page 4 of 4 10. ADJOURNMENT There being no further business, the July 16, 2010 meeting adjourned at 8:58am. Respectfully submitted, Az� Heidi Steinmetz, Economic Development Specialist t Item No: 6A Meeting Date: August 20, 2010 Type of Business: EDA Administrator Review: _ City ®f Mounds Viers Staff e ®rt To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Continue Discussion About Housing Rehabilitation Program Options Background At the July 6th Work Session, the City Council discussed possibly amending the ERA's Housing Replacement Program to better reflect the EDA's decision in 2007 to focus the program towards only demolishing blighted homes rather than both acquiring and demolishing the homes. The Council appeared interested in the idea of eliminating the acquisition option and asked City staff to present housing rehabilitation program concepts at a future EDA meeting. The EDA reviewed five housing assistance concepts for Mounds View on August 9th and asked City staff to refine the three concepts for the City Council to discuss again at the September 6th Work Session. Discussion Staff is suggesting that the EDC review the three concepts and provide direction to the EDA/City Council on using the EDA's existing Housing Replacement Program dollars towards funding one or more of the concepts. Since 1996, the EDA has allocated $150,000 per year towards the Housing Replacement Program. Note: The funds do not accumulate annually and the EDA cannot transfer these funds into the City's General Fund because all of the ERA's funds are Tax Increment Financing dollars. Concept 1: Mounds View Residential Rehabilitation/Code Enforcement Deferred Loan There would be two options to this loan (the rehabilitation option or the code enforcement option). The rehabilitation option repeats an existing program offered through the Housing Resource Center (the Ramsey County Residential Rehab Deferred Loan). However, due to the lack of funding and the limitation of a long waiting list, City staff suggests that the EDA offer the same program and combine it with a code enforcement option, so that Mounds View's program would be called the "Mounds View Residential Rehabilitation/Code Enforcement Deferred Loan". Below is sample program criteria: Rehabilitation Option The maximum deferred loan amount is $15,000. Eligible properties are owner -occupied single-family dwellings located in Mounds View with the Estimated Market Value at or below $251,750. Eligible work includes repairs, replacement or construction to correct local or state code violations, health and safety items and reducing long-term maintenance and energy costs. Mounds View would offer the loan to residents in the following two tiers according to income limits according to the annually adjusted Area Median Income (AMI). 8-20-2010 EDC Meeting Item 6A — Housing Assistance Concepts Page 2 of 3 Tier 1: Low -Income Homeowners: (at or below 50% AMI) Limit for a family of four under $41,950 annual income. The loan is totally forgiven if the homeowner remains in the home for at least 10 years. Tier 2: Moderate Income Homeowners: (between 50% and 80% of AMI) Limit up to $64,000 annual income for a household of four. The loan is deferred, without interest or payments, repaid in full at time of transfer or sale of the property. Code Enforcement Option This concept would assist income -eligible homeowners (owner -occupied) who have received one or more code violation notices from the City. The idea of this program is to make money available to homeowners to make the necessary repairs to bring their home into compliance. The deferred loan amount is up to $5,000. Eligible repairs may include the following: ® Exterior painting ® Rafters, soffit and fascia repair ® Window glass and screens ® Railings and stairs ® Landing and porches Ineligible repairs include: m Repairs to mobile homes o Driveways, sidewalks and paved areas; and ® Removal of inoperable vehicles Client Eligibility To receive repair work, the applicant must demonstrate ownership of the unit and it must be his or her primary residence. Total household Income cannot exceed 80% of the area median income, adjusted for family size, as defined by the United States Department of Housing and Urban Development. Applicants must demonstrate proof of Income. Department of Housing and Urban Development (HUD) Income Guidelines (as of May 2010) (Family Size - Max Gross Income) ® 1 Person - $35,700 ® 2 Persons - $40,800 ® 3 Persons - $45,900 ® 4 Persons -$50,950 0 5 Persons - $55,050 ® 6 Persons - $59,150 ® 7 Persons - $63,200 ® 8 Persons - $67,300 8-20-2010 EDC Meeting Item 6A — Housing Assistance Concepts Page 3of3 This program would assist low-income (at or below 50% AMI) homeowners to address immediate conditions in the home. There would be no interest or payments on this loan but it would be repaid in full at time of transfer or sale of the property. The loan amount would be between $1,000 to $5,000. Immediate conditions are generally defined as property damage beyond the homeowner's control or that are necessitated by a system or structural failure that has caused or could cause the home to be uninhabitable. Eligible repairs to the home's exterior would be painting, roof repairs (leaks), tree removal (fallen tree from a storm), plumbing repairs (water heaters, sewer backups), heating and cooling system repairs or replacement (only during unforeseen breakdowns). Concept 3: Mounds View Foreclosure Recovery Program This program could be modeled after the City'of Brooklyn Park's efforts to provide down payment assistance of up to $7,500 to homebuyers that purchase homes that have been rehabilitated by for-profit and non-profit housing developers that have partnered with the City. The homebuyers would have to purchase the homes through the housing developer. Recommendation Staff is requesting that the EDC provide direction to the EDA/City Council on using the EDA's existing Housing Replacement Program dollars towards funding one or more of the three concepts mentioned above. Staff will present the EDC's input to the City Council at the September 6th Work Session. No matter the outcome of the EDC and EDA/Council's discussions about housing assistance, the Housing Resource Center would assist City staff in developing and refining program criteria. The Housing Resource Center would also administer the program (s) for a fee per loan closed. i !A Type. Administrator Review: To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Reports of Staff Staff will provide verbal updates at the EDC meeting for Items 8A, B & D. For Item 8C, below is an updated list of available business sites in Mounds View. The only change since last month's EDC meeting is that the Thirfty Car Rental building (at the corner of County Road 10 and Spring Lake Road) is now for sale. Details about each property listed below are on the City's Website. For Sale Land - Former Premium Stop Parcel Land - MultiTech Parcel Building - Former Let's Get Graphic Building - Bridges (office building in Wynnsong Theater parking lot) Building - PAK Building - Former Snyders Building - Thrifty Car Rental Office Condo - Mounds View City Center Suites For Lease Office Space - Dell -Comm Building Office Space - Mounds View Community Center Office Space - WIN Insurance Agency Building Office Space - Multi -Tenant Office Building (Former Let's Get Graphic building) Retail/Service Space - Multi -Tenant Retail/Service Building (subway building) Retail/Service Space - Silver View Plaza Business Park Space - Mounds View Business Park North (Program Ave) Business Park Space - Mounds View Business Park North (Woodale Dr) Business Park Space - Bridges Technology Park Re�s�pectftfulllyy submitted,